How to Open a Demat Account in India: Complete 2026 Guide
Step-by-step guide to opening a Demat account to invest in stocks, mutual funds, and IPOs in India.
What Is a Demat Account?
A Demat (Dematerialised) account holds your shares and securities in electronic form — like a bank account for your investments. In India, all stock market investments require a Demat account.
A Demat account is different from a trading account:
Demat account: Holds your securities
Trading account: Used to buy and sell securities
Bank account: Funds the trading account
Most brokers offer all three as a bundle.
Who Can Open a Demat Account in India
Indian residents: Full account access
NRIs: Require NRI/NRE/NRO accounts
Minors: Guardian can open a minor account
Documents Required
- PAN card (mandatory)
- Aadhaar card (for e-KYC)
- Bank account details (cancelled cheque or bank statement)
- Passport-size photo
- Signature
Major Demat Providers in India
Discount brokers (low cost, online):
- Zerodha: Rs 0 account opening, Rs 300/year AMC, Rs 20 per trade flat
- Upstox: Rs 0 opening, free for delivery, Rs 20 per F&O trade
- Groww: Rs 0 opening, free for stocks, Rs 20 for F&O
Full-service brokers:
- HDFC Securities, ICICI Direct, Kotak Securities: Higher charges but research and advisory
Step-by-Step: Open on Zerodha
Costs to Know
Account opening: Free at most discount brokers
Annual Maintenance Charge (AMC): Rs 300-750/year at discount brokers
Transaction charges: Rs 20 or 0.03% per trade (whichever lower) at discount brokers
STT (Securities Transaction Tax): 0.1% on equity delivery (government charge)
After Account Opening
Link bank account via IFSC. Add nominee details. Enable two-factor authentication. Start with index funds or large-cap stocks if you are new to investing.
Frequently asked questions
Which is the best Demat account in India for beginners?
Groww and Zerodha are the most beginner-friendly with zero account opening fees, clean interfaces, and good educational resources.
Is a Demat account required to invest in mutual funds?
No — mutual funds can be invested in directly without a Demat account, through fund house websites or platforms like Groww, Paytm Money, or Coin by Zerodha.