What is Demat Account?
A ‘Dematerialized’ account (also known as a ‘demat’ account), is a digital account designed to securely store shares and securities in electronic form. By opening a demat account, you can buy, sell, and monitor various assets—from stocks and bonds to mutual funds and ETFs—all in one place.
Opening a free online demat account provides a smooth investing experience:
Setting up a Demat account in India is fast and easy with Anand Rathi. Follow these four simple steps to open a Demat account online and start investing:
A single Demat account opens up a universe of investment and trading opportunities. Here are some of the key benefits you can enjoy:
Invest, hold, and manage multiple asset types in one place.
Access and monitor your portfolio from your desktop or mobile.
Buy and sell shares online and maximize short-term opportunities.
Gain peace of mind against theft and loss of securities.
Receive dividends, bonus issues, and other corporate benefits directly to your account
Here is a quick checklist of essential documents to open an online demat account in India. Keep them prepared before starting the Demat account opening process online to ensure a quick start to your investing journey.
Demat accounts are designed to accommodate diverse investor profiles and are accessible to all individuals. Here’s who can open a Demat account in India:
Opening a Demat account with Anand Rathi is the first step to a fulfilling financial relationship. Besides access to the vibrant Indian stock market, you gain a trusted investment partner with data, tools, and support tailored to your financial needs.
Here’s what makes Anand Rathi’s low brokerage Demat account an excellent one-stop solution for investors in India:
Access multiple investment products, including equities, mutual funds, debt funds, derivatives and many more, from a single account.
Benefit from our research-backed recommendations and insight to identify and invest in great market opportunities.
Depend on our expert team for all aspects of your account, from setup to investment guidance.
Enjoy the advantage of opening a Free* Demat account and enjoy zero Account Maintenance Charge* (AMC) for your first year.
Manage and monitor your investments at home and on the go with our secure, intuitive mobile and web platforms.
Investors in India have access to multiple types of demat, that are designed for different investment needs and regulatory requirements:
1.
A standard account used by Indian residents for trading and holding securities such as stocks, bonds, and mutual funds. They are suitable for investors engaged in regular equity trading and require basic KYC documentation for setup.
2.
Designed for Non-Resident Indians (NRIs), this account allows funds to be transferred abroad, making it easier for NRIs to invest in Indian markets while accessing their funds globally. A Non-Resident External (NRE) bank account is required to enable seamless cross-border transfers.
3.
This account is also geared toward NRIs, this type of demat account does not permit funds to be transferred abroad. They are Linked to a Non-Resident Ordinary (NRO) bank account.
4.
The BSDA is intended to promote wider market participation for small investors. It has low to nil annual maintenance charges and is limited to holdings of up to ₹2 lakh. This account offers all the basic benefits of a regular demat account, making it an accessible and cost-effective option for beginners.
Your Questions, Answered
Demat Account can seem complex, but we’ve got you covered. Our comprehensive FAQ section answers common questions like:
Share certificates can no longer be issued in physical form in India, and are held electronically in ‘dematerialized’ form. A Demat (Dematerialized) account securely holds your shares and securities in electronic form. It is a fundamental part of investing and trading in the Indian stock market.
To open a demat account online, you will need valid identity proof, address proof, PAN card, and bank details.
Resident Indians, NRIs, and minors (with a guardian) are eligible to open a Demat account in India.
Yes, you can open multiple Demat accounts with different brokers. All the accounts must be linked to your PAN card.
Charges can vary by broker; with common charges including account opening fees and Account Maintenance Charge (AMC). Anand Rathi offers Free* Demat account opening, and zero AMC for the first year*.
Yes, NRIs can open a Demat account to invest in Indian markets.
No, a Demat account is not necessary for SIP in mutual funds. However, mutual fund units can also be held in demat form, making it easy to pledge for margin for activities like derivatives trading.
Yes, shares can be transferred between Demat accounts.
The signup process for opening a demat account online can be completed in as little as 15 minutes. If al ldocuments are in order, the account can be verified and active in a few hours.
Absolutely. Much like bank accounts, Demat accounts are protected by regulatory frameworks, secure logins, and encryption. Reputed brokers like Anand Rathi provide you multiple ways of securing your account, making them a safe way to hold and trade securities.
The DP (Depository Participant) Name is the name of the financial institution or brokerage (such as Anand Rathi) where your Demat account is held. The DP acts as the intermediary between you and the central depository (like NSDL or CDSL), enabling you to hold and trade securities electronically.
Your Demat account number is a unique 16-digit identifier linked to your account. It can usually be found on your account statements or by logging into your trading platform. The first eight digits usually represent the DP ID, while the last eight are specific to your account.
A Demat account only holds securities in electronic form. Any proceeds obtained from selling shares in the demat account are credited to your linked trading account. You can then transfer these funds to your linked bank account.
"No, a single Demat account allows you to hold a variety of securities, including equities, mutual funds, bonds, and ETFs. This all-in-one approach simplifies tracking and management.
"A PAN card is mandatory for opening a Demat account in India, as it’s required for tax purposes and identity verification. Without a PAN, your application cannot be processed.
Updating your KYC (Know Your Customer) information is generally required only if there are changes in your personal details, such as address or contact information. Routine KYC checks may occur as part of regulatory compliance.
Yes, physical share certificates can be converted to electronic form through a process called Dematerialization. Submit a Dematerialization Request Form (DRF) along with your physical certificates to your DP for a seamless conversion.
Express Zone A Wing 10th Floor, Western Express Highway, Goregaon east, Mumbai - 400063
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Anand Rathi Share and Stock Brokers Ltd.
SEBI Registration No.: INZ000170832 (BSE-949 | NSE-06769 | MSEI-1014 | MCX-56185 | NCDEX-1252), CDSL & NSDL: IN-DP-437-2019. *Research Analyst - INH000000834. PMS: INP000000282 is Registered under "Anand Rathi Advisors Limited" | MBD-INM000010478 is Registered under "Anand Rathi Advisors Limited"| NBFC is Registered under "Anand Rathi Global Finance Limited" Regn. No.: B-13.01682 | Insurance is Registered under "Anand Rathi Insurance Brokers Ltd." License No. 175. Insurance Corporate Agent: CA1048 (This registration shall be valid from 04-Jun-2025 to 03-Jun-2028).
Anand Rathi International Ventures (IFSC) Private Limited.
SEBI Registration No.: INZ000292939 (INDIA INX Member Code: TM - 5064 | NSE IX Member Code: TM -10048, IIBX Member Code: TM – 2011), IIDI DP ID 350071 AND Registration No.: IFSCA/DP/2022-23/007, IFSCA/CMI/Distributor/2023-24/0002. CIN No.: U65999GJ2016PTC094915. For any complaints email at Ifscgrievance@rathi.com. Regulator: International Financial Services Centres Authority (IFSCA)- https://www.ifsca.gov.in/
Disclaimer:
Equity: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
The securities are quoted as an example and not as a recommendation.
Mutual Funds: Mutual Fund investments are subject to market risks, read all scheme related documents carefully before Investing. AMFI-Registered Mutual Fund Distributor: ARN-4478 (Initial Registration 4th Feb, 2003 & Valid From 2nd April, 2025 - 1st April, 2028) : Anand Rathi Share and Stock Brokers Ltd. | ARN-111569: Anand Rathi Wealth Limited | ARN-100284: AR Digital Wealth Private Limited.
IPO: Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
*Third Party products: All third-party products like PMS, Mutual Funds, Fixed Income Products, IBS, Bonds, AIFs are not Exchange traded product and "ARSSBL" is just acting as distributor. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.
MTF: MTF is subject to the provisions of SEBI Cir. CIR/MRD/DP/54/2017 dt June 13, 2017 & terms and conditions mentioned in rights and obligations statement issued by the ARSSBL
Investment Baskets: Baskets are not Exchange traded product, all disputes with respect to this activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.
Research Analyst: The views expressed in this website accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s). The advertisment are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter "SEBI").
Certification: Registration granted by SEBI and certification from NISM is in no way a guarantee of performance of the intermediary or provides any assurance of returns to investors.
*Award Winning Research: Anand Rathi Share and Stock Brokers Limited (Research Analyst) was awarded as "Best Equity Advisor" at World BFSI Congress & Awards 2022
*Client Data: Client data shown on this website is as on 31st March 2025
Trading View: Anand Rathi has partnered with TradingView for its charting technology. A global platform offering heatmaps, STOCK SCREENERS and market data.
Attention Investors:
IPO Disclosure:
Anand Rathi Share and Stock Brokers Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Managers, Nuvama Wealth Management Limited at www.nuvama.com, DAM Capital Advisors Limited at www.damcapital.in, and Anand Rathi Advisors Limited at www.anandrathiib.com, the websites of the stock exchange(s) at www.nseindia.com and www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see 'Risk Factors' of the DRHP. Potential investors should not rely on the DRHP for any investment decision.