A demat account stores shares and other securities in electronic form. It removes paper certificates and maintains ownership records in one place. But one account form does not fit all investors. Demat Account Types vary according to residence, value of holding, age, and ownership. Understanding them helps an investor to find a right setup before linking a Trading Account.
What is a Demat Account?
Once the trade is settled, securities are demat in a demat account. A Trading Account issues buy and sell orders. Shares bought go into the demat account. Shares it leaves sold. The money goes into a bank account.
Types of Main Demat Accounts
- Normal Demat Account
A resident individual investing in Indian securities uses a regular demat account. It can hold shares, bonds, exchange traded funds and eligible mutual fund units. It is suitable for people whose holdings or activity do not fit the BSDA rules. The fee may differ depending upon the Depository Participant or DP.
- Demat Account Basic Services
A BSDA or Basic Services Demat Account is a demat account that can be availed by individuals with limited number of holdings. As per the current rules of SEBI, an investor can have only 1 demat account as a sole holder or the first holder across depositories. The holdings must be within the limit set in advance.
Annual maintenance charges – Nil up to Rs.4 lac. From above ₹4 lakh to ₹10 lakh, the fee is ₹100. For anything over ₹10 lakh, regular fees will be charged.
- Repatriation demat account
This account is for Non-Resident Indians who want to remit sale proceeds or income outside India as per Indian rules. It is linked to an NRE bank a/c. Securities purchased on a repatriation basis are held here. Bank and KYC records should align with the individual’s NRI status.
- Non-Repatriable Demat Account
This NRI account is used in case funds are not sent abroad through the account route. It is usually linked to an NRO bank account. Income and sale proceeds are still subject to taxation and foreign exchange rules. NRIs should keep separate demat accounts for repatriable and non-repatriable securities.
- Mini Demat Account
A minor can hold securities in a demat account of a natural or legal guardian. The minor is the only holder. Joint holding is prohibited. DP updates account after fresh KYC and other necessary steps after the minor turns major.
- Joint Demat Account
The joint demat account has a first holder and joint holders. The order of ownership shall be the same as shown in the transfer records. DPs could allow joint operation or any or survivor for permissible actions. KYC has to be done by every holder.
- Non-Individual Demat Account
Companies, trusts, firms and other eligible bodies can open an account within the appropriate legal grouping. Required papers vary by entity. This may include proof of registration, PAN, bank proof, signatory details and approval from board or partner.
A resident buying listed shares each month could use a regular account. If you have a small portfolio, you may qualify for BSDA. If you are an NRI and use NRE funds, then you will need the repatriable route. If you use NRO funds, then you will need the non-repatriable route. The choice is guided by the holder’s status and source of funds.
Choosing the Correct Type
First verify whether the holder is a Resident, NRI,Minor or a Legal Entity. Then select single or joint holding. The value and type of securities is then estimated.
Verify BSDA eligibility if applicable. Review account fees, trade fees, service channels and products offered by the DP. Connect a Trading Account if you want to buy/sell based on exchanges.
Bajaj Broking’s position
Bajaj Broking has a digital process for linked demat and trading account. It includes mobile and email verification, PAN and Aadhaar verification, bank details, nominee details, signature, selfie verification and e-signing.
The single login allows investors to view holdings and place market orders through linked accounts. Applicants should read the current plan, fees, rules and terms before opening an account.
Conclusion
Demat Account types cater to different needs. A resident may use a regular account or BSDA . An NRI might want to have separate repatriable and non-repatriable accounts. Minor, joint and entity accounts have specific rules.
By choosing correctly, and having valid KYC and linked Trading Account, you have a clear route to hold and trade securities.
Sources
- SEBI, BSDA Circular:
https://www.sebi.gov.in/legal/circulars/dec-2025/ease-of-investments-and-ease-of-doing-business-measures-enhancing-the-facility-for-basic-services-demat-account-bsda-_98667.html - SEBI Investor Charter:
https://investor.sebi.gov.in/Investor-charter.html - NSDL, NRI FAQs:
https://nsdl.co.in/downloadables/faqonnris.doc - CDSL, Open a Demat Account:
https://www.cdslindia.com/Investors/open-demat.html - Bajaj Broking, Demat Account:
https://www.bajajbroking.in/open-demat-account - Bajaj Broking, Trading Account:
https://www.bajajbroking.in/trading-account
