Eligibility criteria to open a demat account

Key Takeaways:

• As of December 2025, the Ministry of Finance reported a total of 21.6 crore Demat Accounts.

• A significant increase in Unique Investors, i.e., active investors, was observed in September 2025, crossing the 12 Crore mark with a fourth of them women.

• Types of Demat Account: Regular, Repatriable Demat Account, Non-Repatriable Demat Account, Basic Services Demat Account (BSDA), Minor Account, Joint Demat Account and Corporate & HUF Demat Accounts.

• Eligibility Criteria for a Demat Account include age, nationality, PAN, and Aadhaar.

Around 21.6 Crores Indians Have a Demat Account and Are Building Their Wealth

According to a report published by the Ministry of Finance, as of December 2025, 235 lakh new Demat Accounts were opened, crossing a total of 21.6 crore Demat Accounts. Active investors reached up to 12 crore, with a fourth of them being women. This significant jump is driven by Indian’s increased investment in the equity market and mutual funds, with 3.5 crore active investors belonging to non-tier and tier-2 cities.

An Economic Survey conducted by the MoF showed Indian households are investing in equity markets through diversified channels. Indian households are shifting from traditional investments such as real estate and gold to financial assets (Equity & Bonds), with around 2/3rd of the households’ savings being invested in these assets, as per a report on ‘Investment and Wealth Management Industry in India’ by Redseer Strategy Consultants.

As mutual funds gained popularity, the industry witnessed significant contributions from Indian households, increasing from 2% in FY12 to over 15.2% in FY25. Moreover, in FY17, SIP contributions rose, with average monthly SIPs increasing 7 times from under ₹4,000 crore in FY17 to over Rs 28,000 crore in FY26 (April-November).

During the pandemic, the unique investor base of mutual funds and equity markets expanded remarkably in the initial years, rising from around 3.1 crore in FY20 to over 11 crore by FY25.

Eligibility Criteria: Who Can Open a Demat Account?

The following Individuals and groups are eligible to open a Demat Account.

• Age: The individual should be at least 18 years of age. In the case of minors, their guardians can open and manage a demat account in their name until they reach maturity.

• Indian Nationality: Only Indian residents and Non-resident Indians are eligible to open an individual Demat account with Upstox.

• HUF: Hindu Undivided Families (HUF) can open a HUF Demat Account with Upstox by submitting HUF PAN and other required documents.

• Corporate/LLP/Partnership: Corporations, LLPs and partnership firms can open a specialised Demat Account to manage all their business investments.

• PAN & Aadhaar Card: PAN and Aadhaar cards are mandatory for opening a Demat account, as they serve as proof of identity and address. Check the detailed eligibility criteria.

Documents Required to Open a Demat Account

Choose a trusted and SEBI-registered broker like Upstox and submit the following documents along with the Demat Account form.

Identity Proof

SEBI has made PAN mandatory because it’s the sole identification number for all transactions in the securities market. Make sure your PAN is linked to your Aadhaar card.

Address Proof

Submit your Aadhaar card, passport, driving licence, voter ID, or utility bill as proof of address.

Income Proof

Submit a bank account statement, salary slips, or ITR as income proof to activate the F&O segment on Upstox.