Open Free Demat Account

Types of Demat Account

Regular Account: A regular Demat account is for Indian residents who want to trade in shares alone and need storage for securities. Stocks are debited from your account when you sell them, and they're credited back when you buy them during trading. If you're trading in F&O contracts, then a regular Demat account isn't necessary because these contracts don't require any storage space.

Repatriable Demat Account: NRIs can also invest in the Indian equity markets, but they cannot use a regular Demat account to do so. To hold this type of investment, you need a repatriable Demat account and an NRE bank account. If you become an NRI and have equity investments in India, you will need to close your regular Demat accounts and transfer your holdings onto a Non-resident Demat account.

Non-Repatriable Demat Account: The Non-Repatriable Demat account is the second possible option for NRIs, but it does not allow them to transfer money abroad. Investors are required to link their NRO (Non-Resident Ordinary) savings account with the Demat account in order for effective operation.

Features of Demat Account

• Physical securities carry a numerous risk of damage and theft. This risk is eliminated completely with a Demat account. Your certificates are electronically stored so there is no possibility of them being stolen or forged. You also eliminate the possibility of bad delivery or fake securities with a Demat account.
• A Demat account eliminates all paperwork, which allows for faster transaction completion. This saves time which allows the investor to sell and buy more securities quicker and more efficiently.
• Demat account gives you the flexibility to hold and track all your investments through a single account. You no longer need to open separate accounts for buying NCDs, tax-free bonds, etc. Most of your instruments can be held at one single place i.e. your demat account. It also makes it convenient to track the performance of your portfolio.
• You can also use it to secure your savings and access bank loans via the securities in your demat account. You can use the securities as collateral to get a loan from your bank.