India crossed 18 crore Demat accounts in March 2026 (combined NSDL + CDSL data). Discount brokers now dominate: as of Feb 2026, Groww has overtaken Zerodha in active client base — Groww at ~1.45 crore vs Zerodha at ~1.39 crore (NSE active clients), Angel One at ~75 lakh, Upstox at ~30 lakh. The shift to discount brokers (₹20 flat or zero brokerage on delivery) has driven retail participation since 2020.

A Demat account (“dematerialised account”) holds your shares, bonds, ETFs, mutual funds and government securities in electronic form, replacing physical certificates. It's maintained by a Depository Participant (DP) — your broker — under either of two depositories: NSDL (National Securities Depository Ltd) or CDSL (Central Depository Services Ltd).

A trading account is the channel through which you place buy/sell orders on the NSE or BSE stock exchanges. Money moves between your bank → trading account → exchange → counterparty's trading account → counterparty's bank.

Most brokers open both together as a single onboarding flow. Older “3-in-1” accounts (e.g., ICICI Direct, HDFC Securities, Kotak Securities) bundle savings account + Demat + trading in one ecosystem.

Eligibility:

• Resident individual age 18+ (minor accounts allowed under guardian's name, separate process).
• Valid PAN (and PAN-Aadhaar linked since July 2023 — unlinked PAN is “inoperative” and DP can't open the account).
• Valid Aadhaar linked to a mobile number (for OTP-based eKYC).
• Bank account in your name (for fund transfer + dividend / redemption credits).
• For NRIs, separate process: NRO Demat (for India-source shares acquired via repatriable / non-repatriable bank account) and NRE PIS-linked trading account; HUF accounts use HUF PAN + Karta KYC.

The legal anchors are the Depositories Act 1996, SEBI (Depositories and Participants) Regulations 2018, SEBI (Stock Brokers) Regulations 1992, and the SEBI Master Circular on KYC Norms (latest December 2024 consolidation, ref SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2024/…). CKYC framework is governed by the Prevention of Money Laundering Act 2002 + PML Rules 2005.

This is where money is made or lost over decades — not in the trade itself. Three rough buckets:

+-------------------+----------------+----------+-------------+--------------+
| Type              | Examples       | Account  | Brokerage   | When to pick |
|                   |                | open fee | (delivery)  |              |
+-------------------+----------------+----------+-------------+--------------+
| Discount broker   | Zerodha, Groww,| FREE     | ₹0 delivery,| Most retail  |
| (app-first, low   | Upstox,        |          | ₹20 or      | investors;   |
| or no advisory)   | Angel One,     |          | 0.03%       | low cost,    |
|                   | 5paisa, Dhan   |          | intraday    | DIY learners |
+-------------------+----------------+----------+-------------+--------------+
| Full-service      | ICICI Direct,  | ₹500-    | 0.30-0.55%  | Want research|
| (research +       | HDFC Sec,      | ₹1,000   | delivery,   | reports +    |
| advisory)         | Kotak Sec,     |          | 0.05%       | dedicated RM,|
|                   | Motilal Oswal, |          | intraday    | OK paying    |
|                   | Sharekhan, IIFL|          |             | premium      |
+-------------------+----------------+----------+-------------+--------------+
| 3-in-1 (savings + | ICICI Direct,  | Bundled  | Same as     | Already SBI/ |
| Demat + trading,  | HDFC Sec,      | with     | full-       | ICICI/HDFC   |
| from a bank-      | Kotak Sec,     | bank     | service     | customer; UI |
| backed broker)    | SBI Sec, Axis  | account  |             | continuity   |
|                   | Direct         |          |             |              |
+-------------------+----------------+----------+-------------+--------------+

For a first-time investor with small capital and a long horizon, discount brokers are the default rational choice — saving 0.30% on every ₹1 lakh delivery trade compounds to lakhs over a decade. Pay for full-service only if you want curated research and don't want to read it yourself.

• PAN card (image of physical or e-PAN).
• Aadhaar (last 4 digits visible to broker — DigiLocker pull preferred for full version).
• Bank proof: cancelled cheque, OR latest 3 months' bank statement, OR passbook with name + IFSC + account number visible.
• Signature image: white background, blue or black ink, no smudges, JPG ≤ 1 MB.
• Photo: clean front-facing selfie, no filters.
• Income proof (only required if you want to trade in F&O — futures and options): latest salary slip, OR ITR, OR 6 months' bank statement showing income, OR Net worth certificate from CA, OR Form 16. SEBI mandates this for derivatives.

• Zerodha: https://signup.zerodha.com or Kite app. Account opens for ₹200 (one-time, BSE) for equity; F&O activation free.
• Groww: Groww app → Sign up → Aadhaar + PAN. Free account opening + AMC.
• Upstox: https://upstox.com → Open Account. Free account opening, ₹150 + GST annual AMC.
• Angel One: Angel One app → Open free account. Free opening, ₹450 + GST AMC.
• 5paisa: Free opening; ₹400 AMC (waivable on min trades).
• Dhan: Free opening, free AMC for life (BSDA framework).
• ICICI Direct: ₹975 lifetime brokerage plan or ₹0 with Prime / NEO plans.
• HDFC Securities: ₹999 opening + ₹750 AMC.

• App will ask for permission to fetch your DigiLocker documents — Aadhaar XML, PAN, photo, signature. Approve.
• Aadhaar OTP sent to your registered mobile — enter to authenticate.
• Address auto-fills from Aadhaar; correct if you've moved (you'll need to upload a fresh address proof — utility bill, passport, or rental agreement).
• Bank account verified by penny-drop (broker sends ₹1 to test the account; auto-reverses).

SEBI requires a one-time In-Person Verification to confirm the applicant is real. Discount brokers do this via a 30-60 second video selfie:

• App generates a random 4-digit OTP on screen.
• You record a video reading the OTP aloud while looking into the camera.
• Or you join a brief video call with the broker's executive.

Failure modes: poor lighting, face not visible, OTP mis-spoken — easy to redo on the spot.

• eSign via Aadhaar OTP — replaces wet signature on the Account Opening Form (AOF), KRA registration, FATCA declaration, P&L sharing consent, and trading agreement.
• Some brokers still ask for an uploaded scanned signature image as a backup.

• Submitted application goes to broker's compliance team for review.
• Demat ID (BO ID — 8-digit Beneficial Owner ID for CDSL; 16-digit DP ID + Client ID for NSDL) is generated.
• Trading account separately mapped to the Demat.
• Login credentials (Client ID + password) sent via email/SMS.
• KRA (KYC Registration Agency — CVL, NDML, CAMS, KARVY) record updated; subsequent broker openings will reuse this KYC.
• Activation timeline: 24-72 hours at discount brokers; 3-7 days at full-service brokers.

• Open the broker's app → “Funds” → “Add Money” → choose UPI / Net Banking / IMPS.
• UPI: instant + free up to ₹2 lakh per transaction.
• Net banking: ₹9-₹15 fee per transfer at most brokers.
• NEFT/RTGS: free at most banks but T+0 settlement.
• Once funds reflect (usually instant via UPI), go to the Watchlist / Markets section, search the stock, click Buy → enter quantity and order type (Market = current price; Limit = your specified price).
• Order goes to NSE/BSE matching engine; on execution, you get a contract note + SMS.
• Shares credit to Demat on T+1 under SEBI's 2023 settlement reform (T+0 optional pilot for select stocks since March 2024).
• Funds for sell trades are credited back to your trading account on T+1; transfer to bank requires a separate withdrawal request (1-2 working days).

+----------------------------------+----------------------------------------+
| Account opening (discount)       | ₹0 to ₹200 (Zerodha BSE charge ₹200)   |
+----------------------------------+----------------------------------------+
| Account opening (full-service)   | ₹500 to ₹1,000                         |
+----------------------------------+----------------------------------------+
| Annual Maintenance Charge (AMC)  | ₹0 (Groww, Dhan) - ₹450 (Angel One)    |
|                                  | + GST                                  |
+----------------------------------+----------------------------------------+
| Brokerage — equity delivery      | ₹0 (Zerodha, Groww, Dhan); 0.30-0.55%  |
|                                  | full-service                           |
+----------------------------------+----------------------------------------+
| Brokerage — intraday equity      | ₹20 / 0.03% per executed order         |
|                                  | (whichever lower) — discount brokers   |
+----------------------------------+----------------------------------------+
| Brokerage — F&O                  | ₹20 flat per order (most discount      |
|                                  | brokers); per-lot at full-service      |
+----------------------------------+----------------------------------------+
| STT (delivery)                   | 0.10% on buy + sell                    |
+----------------------------------+----------------------------------------+
| STT (intraday)                   | 0.025% on sell side only               |
+----------------------------------+----------------------------------------+
| STT (F&O)                        | 0.02% on options sell premium;         |
|                                  | 0.0125% on futures sell                |
|                                  | (rates revised in Finance Act 2024)    |
+----------------------------------+----------------------------------------+
| Exchange transaction charge      | NSE 0.00345% / BSE 0.00375% (equity)   |
+----------------------------------+----------------------------------------+
| GST                              | 18% on brokerage + transaction charge  |
+----------------------------------+----------------------------------------+
| SEBI fee                         | ₹10 per ₹1 crore of turnover           |
+----------------------------------+----------------------------------------+
| Stamp duty                       | 0.015% buy delivery; 0.003% intraday;  |
|                                  | 0.002% F&O futures; 0.003% F&O options |
+----------------------------------+----------------------------------------+
| LTCG (equity, > 1 year holding)  | 12.5% beyond ₹1.25 lakh annual gains   |
|                                  | (Finance Act 2024)                     |
+----------------------------------+----------------------------------------+
| STCG (equity, < 1 year holding)  | 20% (revised from 15% in Finance       |
|                                  | Act 2024)                              |
+----------------------------------+----------------------------------------+
| RTI to SEBI PIO                  | ₹10 by IPO. BPL = free                 |
+----------------------------------+----------------------------------------+

• PAN-Aadhaar not linked. Since 1 July 2023, unlinked PAN is “inoperative” — no broker can open a Demat against it. Pay ₹1,000 fee under Challan 280 Minor Head 500, link, wait 4-5 days.
• Name mismatch between PAN, Aadhaar and bank account (e.g., “Vikas Reddy” on PAN, “Vikas Kumar Reddy” on Aadhaar). Get one corrected first — bank's KYC update is fastest (1-2 days).
• Signature image rejected. Background not white, smudge, scanned at low resolution. Re-upload on white paper, blue ink, daylight photo.
• IPV failure. Video too dark, face partially obscured, OTP mis-read. Redo from app.
• Existing Demat with another DP that wasn't closed. SEBI doesn't restrict multiple Demats but some brokers' compliance flags duplicates — provide a NOC or close the old one (see Step 7 in our how to close piece — same KYC framework applies).
• Bank account not pre-validated (penny-drop fails). Possible reasons: name mismatch, account dormant, third-party account. Use a different account or correct the name.
• CKYC database mismatch. SEBI's central KYC has your old address / employer — record in CKYC (CERSAI, Mumbai) and broker's record don't match. Update via CKYC modification through a registered intermediary.
• F&O activation rejected because you didn't submit income proof (₹1 lakh net worth or ITR or 6 months bank statement). SEBI mandate since 1 October 2022 — submit and reapply.
• Address proof not accepted because it's older than 3 months (utility bill) or in a different name (e.g., your father's). Use Aadhaar (no expiry) or a fresh utility bill in your name.

• Zerodha: support@zerodha.com; 080-7117-5337.
• Groww: support@groww.in; 9108800604.
• Upstox: support@upstox.com; 022-6130-9999.
• Angel One: support@angelone.in; 1800-1020-5757.
• ICICI Direct: customercare@icicidirect.com; 1860-123-1122.
• HDFC Securities: customer.care@hdfcsec.com; 1800-200-9100.

Every SEBI-registered broker must have a Compliance Officer and a Designated Officer for Investor Grievances with email published on the broker's website (mandatory under SEBI circular). SLA: 15 working days to substantive resolution.

• NSE Investor Service Centre (ISC): ignse@nse.co.in; 1800-22-0058.
• BSE Investor Services: is@bseindia.com; 022-2272-8097.
• Filed against your broker for trade execution / fund settlement / contract note disputes. Exchange has its own arbitration mechanism for disputes ≤ ₹25 lakh.

• NSDL: info@nsdl.co.in; 022-2499-4200.
• CDSL: complaints@cdslindia.com; 1800-22-5533.
• For Demat-specific issues (transfer of shares between DPs, ISIN issues, IEPF claims, transmission on death).

• https://scores.gov.in — SEBI Complaint Redress System (SCORES 2.0 since April 2023).
• 60-day SLA mandated by SEBI; auto-escalation to next supervisory layer if broker doesn't resolve.
• Free, online, with an audit trail. Single most effective rung for retail investors.
• SCORES escalates to SmartODR (online dispute resolution) if first cycle fails — independent arbitration with binding outcome.

• SEBI HQ Mumbai; regional offices at Delhi, Kolkata, Chennai, Ahmedabad. Walk-in for hard copies of complaint.
• CPGRAMS via https://pgportal.gov.in → Ministry of Finance → SEBI.

SEBI is a public authority under §2(h) of the RTI Act 2005. NSE / BSE / NSDL / CDSL are private entities (NSE and BSE are listed/listing companies; the depositories are companies under SEBI regulation) — they're not directly under RTI, but information about them held by SEBI is. Brokers themselves are private entities — not under RTI directly.

RTI helps here when:

• You want a broker's regulatory action history — penalties imposed, inspection findings, complaint trends — RTI to PIO SEBI for the redacted enforcement order or inspection summary.
• SEBI has issued a circular or guideline that a broker is misapplying — RTI to PIO SEBI for the underlying file noting and basis.
• You want published consolidated data on broker complaints (SCORES quarterly summary) but the website snapshot is missing data — RTI to PIO SEBI for the database extract.
• You want a copy of SEBI's adjudication / settlement order that's not yet on the website (delay in upload).

RTI does NOT help here when:

• You have an individual dispute with a broker (wrong trade, missing funds, contract note error). Use SCORES — that's the statutory remedy. RTI is too slow and gives you “information”, not redressal.
• You want SEBI to discipline a specific broker based on your complaint. RTI cannot trigger enforcement; SCORES → adjudication is the path.
• For IPO allotment logic on a specific application. Allotment is by the Registrar (Link Intime, KFinTech etc.) per SEBI's allocation formula — RTI to SEBI gets you the formula, not your individual application's outcome.
• To get price movements / market data — that's exchange data, not “information held” by SEBI in any retrievable form.
• For your Demat statement — that's between you and your DP; download from app.

See dedicated guide: RTI in 12 simple steps for the SEBI PIO postal address (currently Plot No. C-7, Bandra Kurla Complex, Bandra (East), Mumbai 400 051) and IPO format.

Q. Can I open multiple Demat accounts with different brokers?
Yes — SEBI does not restrict the number. Many investors hold one Demat for long-term equity (Zerodha) and another for IPO subscriptions (because some brokers allot on first-come basis). However each comes with its own AMC; consider whether the second is worth it.

Q. What's the difference between NSDL and CDSL?
Both are SEBI-registered depositories doing the same job — holding your securities electronically. NSDL is older (1996), promoted by IDBI/NSE/UTI. CDSL (1999) is promoted by BSE/banks. Most discount brokers (Zerodha, Groww, Upstox, Angel One) are CDSL DPs. Securities can be transferred between depositories via inter-DP transfer; functionally interchangeable for retail.

Q. What is BSDA — Basic Services Demat Account?
A SEBI-mandated free or low-cost Demat for small investors with holdings ≤ ₹4 lakh. AMC is NIL up to ₹4 lakh holding value, ₹100 above ₹4 lakh up to ₹10 lakh. Most discount brokers auto-categorise eligible accounts as BSDA. From Sep 2024, BSDA threshold raised to ₹4 lakh (debt) + ₹4 lakh (other securities) — ₹8 lakh combined.

Q. Is my money safe with a discount broker?
Securities (shares) are held in your name in the depository (NSDL/CDSL) — broker can't pledge or sell without your authorisation (SEBI's 2022 ASBA-like settlement framework, 2023 CUSPA framework). Cash in the trading account is in a SEBI-mandated client-segregated bank account; in the worst case (broker insolvency) you have claim against the Investor Protection Fund of the exchange (₹25 lakh per investor at NSE).

Q. How does the new T+1 settlement work?
Since Jan 2023, SEBI has moved Indian equities to T+1 settlement — shares hit your Demat on the next trading day after the trade. T+0 (same-day settlement) launched as an optional pilot in March 2024 for 25 stocks; expanding gradually.

Q. Can NRIs open a Demat with discount brokers?
Yes — Zerodha, Groww (limited), HDFC Sec, ICICI Direct support NRI accounts. Need NRO/NRE bank account, PINS (Portfolio Investment Scheme) approval letter from your bank, FATCA declaration. Account opening process takes longer (15-30 days) and may require physical document mailing.

Q. What is the “nominee” requirement?
SEBI mandates a nominee declaration by every Demat account holder; deadline extended to 30 June 2026 (last extension). Without nomination (or explicit opt-out), the account can be frozen for debits — you can't sell. Login to your broker's app → “Account” → “Nominee” → fill in 1-3 nominees and percentage allocation.

Q. What happens to my Demat on death?
Securities are transmitted (not “transferred”) to the nominee on production of death certificate, claim form, and KYC of nominee — typically 15-30 days. If no nomination, legal heirs need to produce succession certificate / probate / legal heir certificate — process takes 6-24 months.

Q. Can I trade in mutual funds, IPO, bonds from the same Demat?
Yes. Mutual funds since SEBI's 2017 framework can be held in Demat (or in folio form via AMC). IPOs apply via ASBA from your bank account — shares credit to Demat on listing. Government bonds and corporate bonds also held in Demat.

Q. Brokerage is ₹0 — how does the broker make money?
Discount brokers make money from: (a) F&O brokerage (₹20 flat × millions of orders), (b) interest on idle client funds in pool account, © margin trading facility (MTF) interest, (d) cross-sell (mutual funds direct plans, insurance, bonds), (e) payment for order flow / clearing arrangements (limited in India compared to the US).

• How to apply for a credit card in India
• How to close a bank account in India
• How to dispute a CIBIL credit score error
• How to file ITR online — capital gains schedule
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory
• RTI forms + state-wise fee chart

Last reviewed: 26 April 2026 by RTI Wiki editorial team. SEBI brokerage rules, STT rates, and BSDA thresholds change with regulatory and budget notifications — verify current numbers on sebi.gov.in or write to admin@bighelpers.in if you spot a stale figure.