Market Structure

What is Demat Account?

A demat (dematerialized) account holds securities in electronic form in India — mandatory for trading stocks, bonds, ETFs, and mutual funds on NSE and BSE.

Formula

Opened through a Depository Participant (broker) linked to NSDL or CDSL. Requires PAN, Aadhaar, and bank account.

How to Interpret

India has crossed 18+ crore demat accounts, reflecting massive retail participation growth. Demat account growth rate is a proxy for new investor inflows into Indian markets.

Typical Ranges

Annual maintenance: ₹0-300. Most discount brokers (Zerodha, Groww) offer free demat accounts.

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