What is a demat account? A simple guide for beginners
If you want to buy shares in India, you need two accounts working together: a demat account and a trading account. Here's what each one does, in plain words.
📂 Demat account: your digital locker
"Demat" is short for dematerialised. A demat account holds your shares, ETFs, bonds and other securities in electronic form – just like a bank account holds your money. Your holdings are kept with a depository (NSDL or CDSL) in your own name.
📈 Trading account: where you buy and sell
A trading account is what you use to place buy and sell orders on the stock exchange. When you buy shares, money goes out of your trading account and the shares arrive in your demat account. When you sell, the reverse happens.
🪪 What you need to open one
- PAN card
- Aadhaar linked to your mobile number, for e-KYC and e-sign
- A cancelled cheque or recent bank statement
- Income proof, only if you want F&O, commodities or MTF
⏱️ How long does it take?
The online application usually takes 10–15 minutes. Once the broker finishes verification, your account is activated and you receive your login details.
Want help? Bells Buddy can open your Kotak Securities demat and trading account with you on a call, step by step.
This article is for general education only and is not investment advice. Investments in the securities market are subject to market risks; read all related documents carefully before investing.