Open a Demat Account

A Demat account is an electronic account used to hold and manage your investments in a digital format. It's essential for buying, selling, and holding various financial securities like Stocks, Bonds, Mutual Funds, and more.

The full form of Demat Account is 'Dematerialised Account'. It's like a digital wallet for your stocks and investments.

Upstox offers a Demat Account with Zero Annual Maintenance Charges (AMC). This means you don't have to pay any fees for maintaining your account. We follow a pay-per-use model. This means, You will only get charged a small brokerage amount when you place an order. Here is our transparent pricing policy .

Yes, NRIs can open a Demat account in India to invest in Stocks, IPOs, Mutual Funds, F&O and more, but there are some key considerations to keep in mind.

• To get started, NRIs must have either a PIS NRO (Portfolio Investment Scheme Non-Resident Ordinary) or a PIS NRE (Portfolio Investment Scheme Non-Resident External) account.
• Here's a breakdown of these accounts:

1. NRE Account (Non-Residential External): This account is designed to hold foreign income, and the funds in it are fully repatriable. This means you can freely transfer money back to your home country.
2. NRO Account (Non-Residential Ordinary): On the other hand, an NRO account is meant for holding Indian income. The funds in this account are non-repatriable, meaning you can't easily take the money abroad.
3. In addition to an NRE or NRO account, NRIs looking to invest in the Indian stock market through a Demat account must also obtain permission from the RBI (Reserve Bank of India) through one of our partner banks, such as HDFC or Axis Bank. This process falls under the Portfolio Investment Scheme (PIS).
4. With a PIS account, NRIs have the flexibility to use funds from both their NRO (non-repatriable) and NRE (repatriable) bank accounts for making investments in India.

You can transfer shares from one Demat account to another via an offline or online process.

Offline via a Delivery Instruction Slip (DIS) included in the Demat account's welcome kit

• Fill in the DIS with details like BO ID, ISIN, DP Name, and Depository
• Choose 'Off Market' if transferring within the same Depository
• Submit the filled DIS to the current broker
• The broker verifies and sends it to the Depository
• Depository transfers shares to the new broker
• Some fees may apply, but closing a Demat account is free with an unused DIS

There are mainly three types of Demat accounts:

Regular Demat account: This is the standard type of Demat account suitable for individual investors. It holds various financial instruments like Stocks, Bonds, And Mutual Funds.

Repatriable Demat account: This account is for Non-Residential Indians (NRIs) who want to invest in the Indian stock market using foreign funds. Investments and earnings in this account can be repatriated (transferred) back to the NRI's foreign bank account.

Non-Repatriable Demat account: Similar to the Repatriable account, this is also for NRIs. However, investments and earnings in this account cannot be repatriated.They must remain in India.

Nomination is an important aspect of managing your account in your absence, whether it's your bank account, trading account or Demat account.

A nominee is the person or person(s) you legally appoint to own your shares in your absence.

• Adding a nominee can provide peace of mind knowing that your loved ones will be taken care of in case of an unfortunate event
• It can help avoid potential disputes among your heirs about who should inherit your assets
• Saves your loved ones from having to go through tedious paperwork to access your assets in case of your death

• Log in using your 6-digit PIN or Biometrics
• Click on 'Account' and then 'Profile'
• Click 'My nominees' under 'Profile'
• You will be redirected to the 'Nominee details' page, where you will click on 'Add nominee' or 'Opt-out'
• Fill in the nominee details and then click on 'Continue'
• Upload an ID proof of the nominee
• Once the documents are uploaded, enter the 'Nominee share in %' you want to give to that nominee You also have the option to add up to 3 nominees to your account
• 'eSign with Aadhaar OTP

Dematerialisation, often abbreviated as 'Demat', is the process of converting physical share certificates and securities into electronic or digital form. In this process:

1. 1. Physical share certificates are surrendered to a depository participant (DP), typically a bank or financial institution
2. 2. The DP verifies the certificates and updates the investor's Demat account electronically
3. 3. The investor is then provided with a statement of holdings, much like a bank statement. This reflects their digital holdings in electronic form

Dematerialisation eliminates the need for physical share certificates and offers several advantages, including:

• Easy and secure access to holdings
• Reduced risk of loss or damage
• Streamlined trading and investment processes

It is a fundamental aspect of modern stock market and investment practices.