Demat Account = Digital Vault

S a f e.     S e c u r e.     E n c r y p t e d.

A Demat account is similar to a bank account, where you hold your money and respective transaction entries are done in the bank’s passbook. Similarly, securities are held in electronic form and are debited or credited accordingly from a Demat Account. A Demat account can be opened with zero balance of shares.

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How Demat Account Works in India?

NSDL operates under NSE and CDSL operates under BSE. A depository is similar to a bank where securities are held in an electronic form.
When investors buy shares, their respective broker credits them from the investor’s account accordingly and an investor can view their holdings online or in the holding statement.
When an investor needs to sell shares, he/she needs to give a delivery instruction note in which details of shares sold are filled, to their respective broker. The account is debited and the investor is paid for the shares being sold. In the case of online trading, the account will spontaneously reflect the stocks sold and the amount credited to the account.

Types of Demat Accounts

Regular Account

A Regular Demat account is a standard Demat account that Indian investors (who reside in India) use. SEBI recently introduced a similar Demat account known as Basic Services Demat Account (BSDA).

Repatriable Account

Non-Resident Indians use this account, and it plays an active role in transferring funds abroad. The Repatriable account needs to be linked with the NRE bank account.

Non-Repatriable Account

This is a variant of Repatriable Account, and Non-Resident Indians also use it.

Benefits of a Demat Account

Easy to hold

Physical share certificates are exposed to the risk of damage. However, with a demat share you don’t have to worry about any wear and tear. All your shares are stored in a safe and secured manner.

Immediate updates

Your portfolio is updated with every transaction you make. So, just by glancing at your online account, you have a fair idea of all your holdings. In addition, since your details are already stored, you don’t need to fill out all the details for every transaction.

Lower costs

When physical share certificates were used, stamp duty was a major cost that investors had to bear. Now, investors incur much lower costs by using demat accounts.

Reduction in delivery risks

With physical shares, there was always the risk of loss of certificates, theft, fake certificates and so on. But with the reduction in paperwork, all these risks are eliminated. Once you conduct a trade, all the shares are automatically updated to your account.

Easy to track

In case of a death or any other eventuality, earlier it would be a challenge to locate the physical shares and thereby determine the next of kin. With demat shares coming into picture, it has not only become easy to track shares but also identify how the transfer formalities will be completed.

IPO application

In case you wish to apply for the initial public offering (IPO) of a company, you can do so only through a demat account. Once the IPO allocation is completed, the respective shares will be automatically credited to your demat account. Additionally, transfer of shares thereon will also be possible through a demat account only.

Maintaining records simplified

Once you have a Demat account, you will receive a monthly statement of your holdings from the NSDL / CDSL. This will enable you to successfully track your investments across equity, mutual funds, NCDs, ETF and insurance under one umbrella.

Features of Demat Account

By opening a Demat account you can access many useful features.

Share transfer

You only need to send in a duly signed Delivery Instruction Slip (DIS) to your depository participant to transfer your shares.

Loan collateral

You can pledge the securities you hold in a Demat account and use them as collateral for securing a loan from a financial institution.

Temporary freeze

You can temporarily freeze your Demat account for a specific duration. However, this feature is generally only made available if you hold a specific number of shares in your account.

Quick transfer of benefits

Best Demat accounts offer a swift transfer of benefits such as dividends, bonus issue of shares, stock splits, interest, and refunds.

Speed e-facility

NSDL allows you to send instruction slips to your depository participant electronically. This not only makes the entire process faster but also less cumbersome.

Online Trading is convenient

You can easily trade through multiple platforms: Web, mobile and Call & Trade service.

Investors can track their investments anytime

Trades are easily accessible; investors can buy and sell securities at any time and anywhere

Investors are able to review all of their options instead of depending on a broker

All the facts and methods to follow a task are stated online and in some simple and user-friendly ways.

Faster and Secure Transactions

A point where physical transfers would take one month or so which has become simplified with a cost-effective method as there are no more stamp duties on transfer of securities.

Why Open A Free Demat Account Online With Us?

How to open a Demat Account Online?

The first step of dematerialization is the opening of a Demat account. It is a myth among people that this is a complex process. The process of opening a Demat account is as follows:

Selection of DP

Fill out the Dematerialization Request Form

Submission of necessary documents for verification 

Signing of agreement between an investor and the DP

Verification of Documents

Creation of the account

Services offered by Hindustan Tradecom

If you seek flexibility to invest in a choice of financial products, then investing in the capital markets is an ideal choice. Hindustan Tradecom is a SEBI registered intermediary that is a Depository Participant of NSDL and CDSL. With Hindustan Tradecom’s depository facilities, you can avail a host of financial asset-related services.


Convert your physical shares and Mutual funds into electronic form through Hindustan Tradecom and enjoy the convenience of electronic storage and trading.

Corporate actions

Hindustan Tradecom facilitates hassle free distribution of benefits like dividends, interests, and bonus shares and rights issues given by companies


If you are allotted shares in an IPO, you can get the shares directly transferred to your demat account.


Get your dematerialised shares converted into physical shares through Hindustan Tradecom.


Submit the units of open ended funds held in demat account for redemption through Hindustan Tradecom


Utilise your holdings to avail loans by pledging the shares.

What we Offer

Hindustan Tradecom’s depository facilities are supported by the pillars of trust, credibility, technology, and prompt grievance redressal.

Integrated customer care site

Avail a host of services like free access to research reports, ledgers and holdings through the user-friendly integrated customer care website.


Complete critical tasks from the comfort of your home through internet-based services offered to the clients.

SMS alerts

Register for the message facility and enjoy life with regular updates on actions like debits, credits for IPO, subdivision and bonus, and failed and overdue debit instructions.

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Frequently Asked Questions

The Dematerialized account holder holds an account with the DP, not the issuer. These accounts can be held either by individuals or companies. The ownership of securities in such accounts is evidenced only by book entries and not physical certificates.

The mode of payment depends on the type of shares or mutual funds you own. You can use the physical share certificate for buying/selling if you have physical certificates. In the case of Dematerialized shares, you can open Demat account and can do it online. Once you buy a product, transfer the ownership of shares to yourself in a Demat account to avoid paying tax at every transaction you make.

No, you cannot. You can only open the Demat account with a depository participant (DP) of the depository.

With our 3-in-1 account scheme, you can open a Demat account along with trading account. This helps in streamlining the share trading process. The online process of account opening is instant and hassle-free.

Demat accounts can have up to three joint account holders. One is the primary holder and the other two are joint holders.

A trust can open a Demat account if it is registered under one of the following:

  • The Public Trust Act in force in the relevant state
  • The Public Trust Act, 1860
  • Societies Registration Act
  • Bombay Public Trust Act

No, it cannot. But it may open one in the name of the Karta (head of the family).

The SEBI has made it mandatory for Demat account holders to have a nominee. If you do not want a nominee, you must sign a declaration stating so.

Yes, you can have multiple Demat Accounts. However, for your convenience, we suggest you use single Demat account everywhere.

It is not compulsory for you to dematerialise your physical certificates. As per the Depository Act of 1996 you have an option to hold shares either in physical or dematerialised form.

1)LOWER RISK–Possessing shares in their paper format carries a lot of risks like loss, misplacing them, damage to the certificates, etc. Dematerialization of shares eliminates the risk of loss and damage to the securities. The paper certificates also had high incidences of forgery and theft. As the holdings are now in an electronic format, it has reduced the threat of forgery and theft.

2)EASY TO HOLD– A demat account makes equity trading and your shares accessible. You can trade in securities, view your holdings, transaction history, etc. at the click of a button. It also makes managing your details easy. You can make changes to your address, linked phone number, linked bank account, and such other account- related changes for every company stock all from your demat account.

3)EASE OF TRADING– Earlier, paper certificates had to be sent to the Company or the Registrar and Transfer authority to change the ownership of shares, which resulted in delays, additional costs and loss of certificates. With demat accounts; transfer of shares has become easier. Trading in shares, buying, storing, selling online has become seamless and streamlined.

4)REDUCED COSTS– Stamp duty applicable on transfer of physical shares, which was a cumbersome process for investors. Dematerialization of shares has eliminated the stamp duty and reduced all other transactional costs.

5)REDUCED TIME– A demat account minimizes the time taken to trade in equity investments. Buying and selling of shares is a quick process that can be done intra-day through an online trading platform. Similarly, changing personal details in your stocks can be done through a single demat account in which the shares are held. All this has reduced the time taken to trade in and manage securities for investors.

6)ODD-LOT PROBLEM RESOLVED– Earlier, there were multiple restrictions on the selling of shares. Shareholders could not sell shares in odd lots. Demat Accounts has eliminated those restrictions.

7)VARIETY OF INVESTMENTS– With the diversification of investment options, a demat account can store mutual funds, bonds, government securities, Exchange Traded Funds (ETF), etc.

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