Explore The Different Types Of Demat Accounts Available In India
Table Of Contents
- Types Of Demat Account In India For NRIs And Indian Residents
- 1. Regular Demat Account – For Indian Residents
- Are You Eligible For Having A Regular Demat Account?
- 2. Repatriable Demat Account – For NRIs Who Make Transfers To Foreign Countries
- Are You Eligible For Holding A Repatriable Demat Account?
- 3. NRIs Can Open A Non-Repatriable Demat Account To Invest In India
- Are You Eligible To Open A Non-Repatriable Demat Account?
- 4. BSDA – A Service For Small Investors
- 5. A Demat Account For Corporations - This Account Is Designed For Businesses
- Types Of Demat Account In India: Choose The One That Suits Your Profile
A Demat account is essential for anyone investing in India’s stock market. It holds your shares and securities in electronic form, making transactions faster and safer.
But did you know there are different types of Demat accounts designed to suit different investor profiles?
Whether you’re a resident Indian, a non-resident, or someone with specific trading needs, there’s a suitable option for you. Here’s a simple breakdown of the types of Demat accounts in India and how they can be linked with a trading account for a seamless experience.
Types Of Demat Account In India For NRIs And Indian Residents
- 46 million new additions!
- Total tally of 185 million!
- A rise of 33% year-on-year
These have been the highlights of demat accounts in India in 2024. A record number of initial public offerings (IPOs) and gains in the secondary market have been the reason behind the rapid growth of different types of demat account in India.
Furthermore, since the COVID-19 days, demat accounts in India have been witnessing significant growth because of the following reasons.
- Wide adoption of smartphones
- The simple process of opening a demat account
- Good market returns
So, despite disappointments such as foreign portfolio investors FPIs) and selling and earning debacles, demat accounts in India are on the verge of skyrocketing growth. So, it is no wonder that the National Stock Exchange has added 84 lakh new active demat accounts in FY 2025.
“The incremental flows from these new investors will help offset any potential outflows from overseas funds or existing investors and help keep volatility under check. Going forward, the pace of new additions will hinge on market performance.”
-A Senior Brokerage Executive
Moreover, the growth of different types of demat account in India has highlighted gender equality. Similar to men, the growth in the number of female demat account holders has gone up by 4% since 2021.
So, with the number of demat accounts rapidly growing in India, it is crucial to be familiar with the types of demat accounts today.
1. Regular Demat Account – For Indian Residents
This account is the most popular in India and is best suited to individuals here. You can keep your shares, mutual funds, bonds, and ETFs in an electronic account.
If you prefer to trade on the stock market regularly or occasionally, this is your best choice.
For the active buying and selling of shares, the account must be connected to a trading account. Placing orders on the stock exchange is possible with the trading account, and the Demat account keeps track of the securities you purchase.
Are You Eligible For Having A Regular Demat Account?
To have a regular demat account in India, you have to fulfill the following criteria.
- You must be 18 years or older.
- You should be a resident of India.
- Further, you need to have a valid PAN card.
- You must have an active bank account through which you can make transactions.
- You need to have an active email ID and mobile number for verification.
- Moreover, you need to possess all the valid documents.
2. Repatriable Demat Account – For NRIs Who Make Transfers To Foreign Countries
An account called a Repatriable Demat Account is designed for NRIs who wish to move their money to India and then back to their home country.
An NRE (Non-Resident External) bank account must be linked to this account, and it must also follow RBI guidelines.
This is ideal for NRIs who wish to invest in India and repatriate their profits to another country.
Are You Eligible For Holding A Repatriable Demat Account?
- You can be a person of Indian Origin (PIO), a non-resident Indian (NRI), or an overseas citizen of India (OCI) to be eligible to hold a repatriable demat account.
- You must possess an NRE bank account.
- Furthermore, you have to provide a valid passport and work/visa permit.
- You need to prove your overseas residence.
- Moreover, for communication and verification, you need to have an active email ID and mobile phone number.
3. NRIs Can Open A Non-Repatriable Demat Account To Invest In India
NRIs can also open a Non-Repatriable Demat account. You have to link your NRO account to this one, and you are not allowed to send money outside India.
This is suitable for NRIs who want to invest their money in India and keep it there for a long-term period.
Are You Eligible To Open A Non-Repatriable Demat Account?
- According to FEMA guidelines, you have to be an NRI.
- You have to be 18 years or older.
- Further, you need to provide proof of your overseas residence or your address proof.
- Additionally, you need to have an NRO bank account.
- Moreover, you have to do KYC verification and provide your PAN card.
4. BSDA – A Service For Small Investors
This account is for those who do not need to trade frequently or have only a small amount invested.
If your investments do not exceed ₹2 lakh, you can enjoy lower maintenance costs. This account is similar to a regular Demat account but is more affordable.
5. A Demat Account For Corporations – This Account Is Designed For Businesses
A business or registered company can open a Demat account for corporations to manage their investments.
It allows the company to oversee many investments and follow the required regulations.
Apart from that, a company that uses this kind of Demat account must also open a corporate trading account so the company can handle its trades and investments using its official name.
Types Of Demat Account In India: Choose The One That Suits Your Profile
Selecting the best Demat account should be based on your profile and what you want to invest in.
There is an account available for Indians, NRIs, and companies. Demat accounts come with different features, advantages, and rules set by the regulators.
You should know that linking your Demat account to a good trading account is necessary to place buy or sell orders.
They are the basis for your investment process. Look into the available accounts, choose the right one, and begin investing with confidence.
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