How to Invest using Demat Account

India’s Current Equity & Bond Market Scenario

• India’s equity and bond markets are evolving rapidly; make smart investment decisions and build your portfolio.

• In December 2025, around 235 lakh new Demat Accounts were opened, totalling up to 21.6 crores.

• Nifty 50 and BSE Sensex delivered gains of approx. 11.1% ad 10.1% respectively during April-December 2025. Despite continuous policy changes and prevailing geopolitical uncertainties, the Indian equity market demonstrated a phase of resilient performance, said Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman.

• FY26 experienced an increase in IPO issuance, with IPOs in FY26 being 20% higher than in FY25.

• India’s corporate bond market contributes 15-16% of the country's GDP and has demonstrated remarkable growth, with issuance increasing from ₹17.5 trillion in FY15 to ₹53.6 trillion in FY25 (annual growth rate of approx 12%).

How to Invest Using a Demat Account?

You can invest in and hold equity (stocks), corporate bonds, government securities, mutual funds and ETFs in a Demat Account. Here’s how you can kickstart your investment journey using a Demat Account.

Step 1: Choose a SEBI-registered and trusted Depository Participant, like Upstox to open a Demat Account with.

Step 2: Fill the Demat Account application form and submit the required documents, such as a softcopy of PAN card, Aadhaar card, and bank statement (for the F&O segment).

Step 3: Fulfil your Aadhaar-based e-KYC and take a clear selfie to confirm your identity.

Step 4: Select additional trading segments, such as Futures & Options, commodities, and currency markets.

Step 5: Add a nominee. SEBI mandates adding a nominee while opening a Demat Account or completely opting out of the facility. Once your Demat Account is activated, you cannot opt to add nominees.

Step 6: Review the application and e-sign using Aadhaar OTP. Once your application is verified, your Demat Account will be activated, and you will receive a client ID used to access your Demat Account.

Along with a Demat Account, you also need a trading account to buy/sell shares and other securities. Most brokers, like Upstox, offer a 2-in-1 Account, where a Demat and Trading Account are created simultaneously.

Documents Required for Opening a Demat Account

Depending on the kind of Demat Account you choose, you must provide certain documentation. Depending on the kind of Demat Account, you must submit the following documents.

Documents Needed for Basic Service Demat Accounts (BSDA) and Regular Demat Accounts

The following paperwork is needed to open a Basic Service Demat Account (BSDA) and a regular/individual demat account:

• Aadhaar Card
• PAN Card
• Statement of Income (for F&O trading)

Documents Needed to Open a Joint Demat Account

The following documents are needed to open a shared demat account:

• Passport-size photographs of the joint holders
• The joint holders' self-attested PAN copy
• The joint holders' self-attested address verification. (Voter ID, passport, driver's license, or Aadhaar)
• A bank account proof in the primary holder's name. (Cancelled cheque, a bank statement, or a bank passbook copy)
• Bank statement as income proof to trade in F&O.

Documents Required for a Minor Demat Account

Although a minor cannot independently open a Demat Account, their parents or guardian can open and manage a Demat Account in their name on their behalf until they reach maturity.

• Minor’s PAN card
• Minor’s Aadhaar card or passport
• Birth certificate of the minor or 10th marksheet
• Cancelled cheque or recent bank statement of the minor’s bank account

Documents Required for a HUF Demat Account

To open a HUF demat account, submit the following documents:

• Pan Card of Karta & HUF
• Address proof of Karta & HUF
• HUF Stamp & List of Coparceners
• Signature Coparcener on POA
• HUF Demat Proof (Trading only)
• Photograph of Karta
• Bank Statement in the name of HUF
• Deed of Declaration & Bank Pass Book in the name of HUF

Documents Required for a Corporate Demat Account

To open a corporate demat account, submit the following documents:

• Account opening annexures
• PAN of the company
• Address proof
• Individual KYC form signed by the executive directors
• Certificate of incorporation
• Articles of Association (AOA)
• Memorandum of Association (MOA)
• Net-worth certificate
• Bank account proof
• Income proof for F&O trading

Documents Required for NRI Demat Accounts

To open a demat account for NRIs, submit the following documents:

• A copy of your passport.
• A copy of your valid visa.
• Overseas address proof and address proof of your workplace.
• A PINS permission letter from an authorised dealer
• A copy of your PAN card.
• Passport-sized photographs.
• Proof of bank accounts.
• PIS approval letter from the Bank
• Cancelled cheque copy of PINS bank account