Demat & Trading
Hold your shares and securities electronically and buy or sell them on the exchanges — all in a secure, paperless and convenient way.
Who this suits
Investors who want direct ownership of shares, ETFs, bonds or sovereign gold bonds in their own name, and anyone applying for IPOs or holding securities that must sit in dematerialised form.
What's included
- A demat account with a depository (CDSL or NSDL) through a depository participant, holding your securities electronically
- A linked trading account to place buy and sell orders on the NSE and BSE through a registered broker
- Shares bought are credited directly to your own name and cannot be moved without your authorisation
- Mostly online onboarding with e-sign; the account is usually active within a day or two
- Useful for IPO applications, ETFs, sovereign gold bonds and direct equity holdings
How it works
Open the account
PAN, an Aadhaar-linked mobile number, a bank account and your signature — most of it completed online with e-sign.
Securities sit with a depository
Your holdings are recorded electronically with CDSL or NSDL through your depository participant.
Place orders on the exchange
Buy and sell through a registered broker on the NSE and BSE; shares are credited to your own name.
Decide what it is for
A trading account invites activity. If the objective is long-term wealth rather than trading, a mutual fund folio usually serves better.
Frequently asked
Q.Do I need a demat account to invest in mutual funds?
No. Mutual fund units can be held in a normal folio with the AMC without any demat account. A demat account is needed for direct shares, ETFs, listed bonds and IPO allotments.
Q.What is the difference between a demat and a trading account?
The demat account holds your securities electronically. The trading account is what places buy and sell orders on the exchange. They are linked and normally opened together.
Q.Is my holding safe if the broker has a problem?
Your securities sit with the depository (CDSL or NSDL) in your own name, not with the broker, and cannot be moved without your authorisation. Always verify your holdings directly from the depository's own statement.
Q.Should I trade actively?
A trading account invites activity, and activity is where a lot of retail money is lost. If your objective is long-term wealth rather than trading, a mutual fund folio will usually serve you better than a screen full of prices.