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Stock market investments present a wide range of opportunities to secure better financial growth. Short for dematerialised, a Demat account stores shares and securities electronically. 


With it, you can trade in the capital market and eliminate the risk associated with storing certificates physically. Such accounts come with certain fees and charges, which depend on the Depository Participant (DP) and the type of account you hold.

Types of Demat Accounts

As per the Securities and Exchange Board of India (SEBI), a Demat account is mandatory for investing  in shares and securities. This account is managed by a DP, who is associated with one of two major depositories in India. These are the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). 

 

Here are the three types of demat accounts:

1. Regular Demat Account

This account is meant for residents living in the country. It stores your investments in a digital format and operates just like a bank account. Your Demat account is credited when you buy shares and debited when you sell the stocks. 

 

There is another account for stock market investments under this category called the Basic Services Demat Account (BSDA). SEBI introduced BSDA to encourage financial inclusion in the country.

 

A BSDA comes with no maintenance charges if the total value of your holdings is below ₹50,000. If the holdings range between ₹50,000 and ₹2 Lakhs, an annual charge of ₹100 applies.

 

Remember, you do not need a Demat account for investments in futures and options. These have expiry dates and do not need to be stored like equity shares.

2. Non-repatriable Demat Account

This type of Demat account is designed for citizens residing outside the country. Apart from Non-resident Indians (NRIs), it is available to People of Indian origin (PIO) living in countries with foreign exchange regulations.

 

non-repatriable Demat account does not allow you to transfer the sale of your proceeds to foreign countries. It is also known as a Non-Resident Ordinary (NRO) Demat account, and you need to link it to an NRO savings bank account.

3. Repatriable Demat Account

repatriable Demat account allows you to transfer funds outside the country once you link the account with your Non-residential External (NRE) bank account. The ability to transfer funds abroad depends on the laws and regulations of both your citizen country and the residing country.

Factors to Consider When Choosing a Demat Account

Since so many DPs offer demat accounts, choosing a suitable one can be a challenge. Here are some parameters that could help you select the right one:

  • Convenient account opening process

  • Low account opening charges

  • Easy-to-navigate user interface

  • Lower brokerage charges

  • Responsive and quick customer service

  • Trustworthiness of the DP

  • Adequate security features 

  • Choice of investment options and trading platform

  • Costs associated with the MTF 

  • Availability of information and insights 


On Bajaj Markets, you can open a Demat account at zero charges and pay no annual maintenance charges. You could also benefit from affordable Margin Trading Facility (MTF) interest rates, starting at 10.75%.

Frequently Asked Questions

What is a 3-in-one demat account?

A 3-in-1 Demat account combines three essential accounts into a single package: a demat account, trading account, and bank account. It enables seamless integration and convenient transactions by allowing you to buy, sell, and hold securities. This account streamlines the investment process, eliminating the need for separate accounts and facilitating efficient management.

Are non-repatriable and repatriable Demat accounts similar?

No, repatriable and non-repatriable Demat accounts are not the same. Repatriable demat accounts permit NRIs to transfer money abroad, whereas non-repatriable demat accounts do not provide this facility.

Is it possible to open more than one Demat account?

Yes, you can open two or more Demat accounts as SEBI does not levy any restrictions. However, you need to open these accounts with different DPs.

Is there an expiration period for Demat accounts?

No, a demat account does not expire. However, it can become dormant in case of inactivity for 12 months.

What are the benefits of a non-repatriable demat account?

Opening this account helps NRIs trade and invest in the Indian stock market with their securities being held securely in electronic forms.

Which type of demat account is best suited for beginners?

If you are a novice investor in the stock market, opening a regular demat account is ideal. Since these accounts offer comprehensive features, both experienced investors and beginners can operate them easily.

Which demat account is the best in India?

There are many Demat accounts you can choose from based on the trading platform, fees and charges, and investment opportunities. When you open a Demat account on Bajaj Markets, you can benefit from no opening and annual maintenance charges. Nominal MTF interest rates and affordable brokerage fees are also some of the perks offered.

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