India now has over 14 crore active Demat accounts — and opening one has never been easier. The entire process is digital, takes 20–30 minutes, and most brokers activate your account within 24–48 hours. You cannot buy or sell shares on NSE or BSE without a Demat account — it's mandatory by SEBI since 2000.
A Demat (Dematerialised) account holds your shares, mutual funds, ETFs and bonds in electronic form. Think of it as a bank account, but for investments instead of money. You need three accounts to invest in stocks: a Demat account (holds securities), a trading account (to buy/sell), and a bank account (to move money). Most brokers open all three together.
14 Cr+
Active Demat accounts India
24–48 hrs
Account activation time
₹0
Min capital to open
SEBI
Regulator — all brokers certified
Pick your broker first
Top 5 Brokers to Open Demat Account in India 2026
Zerodha
Discount Broker · Market Leader
Account Opening
FREE
Annual AMC
₹300/year*
Equity Delivery
₹0 brokerage
Intraday/F&O
₹20 or 0.03%
Best for: Experienced investors, traders, Kite platform lovers
Groww
Discount Broker · Beginner-Friendly
Account Opening
FREE
Annual AMC
LIFETIME FREE
Equity Delivery
₹0 brokerage
Intraday
₹20 per trade
Best for: Beginners, mutual fund investors, zero-AMC priority
Upstox
Discount Broker · Fast Growing
Account Opening
FREE
Annual AMC
₹150/year
Equity Delivery
₹0 brokerage
Intraday
₹20 per trade
Best for: Active traders, clean UI, good customer support
Angel One
Discount Broker · AI-Powered
Account Opening
FREE
Annual AMC
₹240/year
Equity Delivery
₹0 brokerage
Research
Built-in AI advisor
Best for: Those who want research recommendations + trading
ICICI Direct
Full-Service Broker · Bank-Backed
Account Opening
₹975 one-time
Annual AMC
₹700/year
Equity Delivery
0.55% brokerage
Advisory
Full research + RM
Best for: ICICI bank customers, those wanting full advisory service
Paytm Money
Discount Broker · Payments-First
Account Opening
FREE
Annual AMC
LIFETIME FREE
Equity Delivery
₹0 brokerage
Integration
Paytm payments ecosystem
Best for: Existing Paytm users, new investors, SIP in MF
Complete process
7 Steps to Open a Demat Account Online
- 1Choose Your Broker and Download the AppPick a SEBI-registered broker (see comparison above). For beginners: Groww or Paytm Money (lifetime free, simple UI). For active traders: Zerodha or Upstox. Download the app from Google Play Store or App Store, or visit their website.💡 Verify the broker is SEBI-registered at sebi.gov.in before submitting any documents. All major brokers listed here are legitimate.
- 2Enter Mobile Number and Verify via OTPOpen the app, click "Open Demat Account" or "Start Investing". Enter your mobile number and verify with the OTP received. This mobile number becomes your primary contact for all account communications.
- 3Enter PAN and Complete Aadhaar e-KYCEnter your 10-character PAN number. Then enter your 12-digit Aadhaar number for e-KYC. SEBI mandates that PAN must already be linked to Aadhaar — if not, link them first (see our Aadhaar-PAN linking guide). An OTP is sent to your Aadhaar-registered mobile for verification.💡 Your name, date of birth, and photo from Aadhaar are used for KYC automatically — no manual uploads needed.
- 4Complete Video KYCSchedule a Video KYC call with a broker representative (usually available 9 AM–6 PM on weekdays). During the call: show your original PAN card and Aadhaar card to the camera, answer 2–3 basic identity verification questions, and confirm your signature. This is mandatory for SEBI compliance and takes 5–10 minutes.💡 Good lighting and a plain background help the video KYC complete faster. Keep documents ready before joining the call.
- 5Link Your Bank AccountEnter your bank account IFSC code and account number, or verify via UPI ID if available. This linking enables fund transfers — you'll add money to buy stocks and withdraw sale proceeds here. Bank account must be in your own name.
- 6Sign the Account Opening Form DigitallyReview and sign the broker client agreement digitally — most brokers use Aadhaar e-sign (OTP-based) for this. Read the risk disclosure document and brokerage schedule. This creates your legal relationship with the broker as your Depository Participant (DP).
- 7Receive Account Credentials and Start InvestingWithin 24–48 hours, you'll receive your Demat account number (BO ID) and DP ID via SMS/email. Login to the app, add funds via UPI or NEFT, and you're ready to buy your first stock or start a SIP in mutual funds.💡 Enable 2-Factor Authentication immediately after first login. Never share your MPIN or OTP with anyone — including people claiming to be broker support.
Documents needed
Documents Required to Open Demat Account
PAN Card
Mandatory. Must be linked to Aadhaar. Used for tax identification.
Aadhaar Card
For e-KYC and Video KYC identity verification. Mobile must be linked.
Bank Account Details
IFSC code + account number or UPI ID. Must be in your own name.
Smartphone with Camera
For Video KYC. Good lighting required. Android or iOS.
Digital Signature
Via Aadhaar OTP e-sign — no physical signature needed online.
Email Address
For account statements, contract notes and tax documents.
✅ What Can You Hold in a Demat Account?
Stocks (NSE + BSE) · Mutual Funds (units) · ETFs (Exchange Traded Funds) · Government Bonds and T-Bills · Corporate Bonds and NCDs · IPO shares · Sovereign Gold Bonds (SGBs) · REITs and InvITs. You cannot hold commodities (gold, silver), currencies, or international stocks directly in an Indian Demat account.
Cost comparison
Demat Account Charges — Broker Comparison 2026
| Broker | Opening Fee | Annual AMC | Equity Delivery | Intraday/F&O |
|---|---|---|---|---|
| Zerodha | FREE | ₹300/yr* | ₹0 | ₹20 or 0.03% |
| Groww | FREE | FREE Forever | ₹0 | ₹20 per trade |
| Upstox | FREE | ₹150/yr | ₹0 | ₹20 per trade |
| Angel One | FREE | ₹240/yr | ₹0 | ₹20 or 0.25% |
| Paytm Money | FREE | FREE Forever | ₹0 | ₹10 per trade |
| ICICI Direct | ₹975 | ₹700/yr | 0.55% | 0.25–0.55% |
*Zerodha AMC is ₹0 for BSDA accounts (holdings below ₹4L). Charges updated as of April 2026 — verify at respective broker websites before opening.
Common questions
Demat Account FAQ
For beginners: Groww (easiest UI, lifetime free AMC, best for mutual funds + stocks). For active traders: Zerodha (Kite platform, most stable, market leader). For zero-cost priority: Groww or Paytm Money (truly lifetime free). For advisory: ICICI Direct or HDFC Securities. All SEBI-registered brokers are equally safe — NSDL/CDSL holds your shares, not the broker.
Account opening is free at most discount brokers (Zerodha, Groww, Upstox, Angel One, Paytm Money). Annual Maintenance Charges (AMC) vary: Groww and Paytm Money are lifetime free. Zerodha charges ₹300/year for non-BSDA accounts. Under SEBI's BSDA scheme, if your total holdings are below ₹4L and you have only one Demat account, AMC is ₹0 at Zerodha too.
You need: PAN card (mandatory — must be Aadhaar-linked), Aadhaar card (for e-KYC), bank account details (IFSC + account number or UPI ID), and a smartphone with camera for Video KYC. No physical documents need to be physically uploaded — the e-KYC process reads Aadhaar data digitally.
Yes — 100% safe. Your shares are not held by the broker. They are held in trust by NSDL or CDSL (the two SEBI-regulated depositories). Even if your broker goes bankrupt, your Demat holdings are completely safe and can be transferred to another broker. This is the biggest misunderstanding about Demat accounts.
Yes — you can open Demat accounts with multiple brokers. However, it's generally not recommended: it increases AMC costs and complicates portfolio tracking. If you have multiple accounts, the BSDA scheme only applies to one account. Most investors find one or two accounts (e.g., Zerodha for trading + Groww for mutual funds) is the optimal setup.