A Demat account holds securities in electronic form and allows investors to manage eligible investments through a Depository Participant (DP). However, not every Demat account has the same structure or eligibility conditions. The account type can depend on factors such as the investor’s holding pattern, residency status, age and value of securities. Special categories such as Basic Services Demat Accounts (BSDAs) are also available under specified conditions. This article covers the main types of Demat accounts in India and explains how their features and eligibility can differ.
What Is a Demat Account?
A Demat account is used to hold securities electronically. Investors can open demat account with a SEBI-registered Depository Participant, which provides services through the relevant depository.
The account can hold eligible securities such as shares, bonds, exchange-traded funds and certain mutual fund units in electronic form. The exact services available can depend on the DP and the type of account.
The main Demat account categories in India include regular individual accounts, joint accounts, minor accounts, BSDA and accounts designed for non-resident investors.
Regular Individual Demat Account
A regular individual Demat account is generally held by one person in their own name. It can be used to hold securities electronically and access services provided by the DP.
Investors can open demat account facilities as sole holders when they meet the applicable KYC and account-opening requirements. A PAN and other prescribed information are generally required as part of the process.
A regular account does not have the special holding-value conditions applicable to a BSDA. Its applicable charges and services depend on the DP’s terms.
Joint Demat Account
A Demat account can also be opened in the names of joint holders. SEBI permits a Demat account to have up to three account holders, consisting of one main holder and two joint holders.
The account-opening form specifies the account holders and the applicable mode of operation. The securities held in the account correspond to the ownership pattern recorded for the account.
Joint holding can therefore be relevant when securities are owned by more than one person and the account structure needs to reflect that ownership.
Minor Demat Account
A Demat account can be opened in the name of a minor. However, the account is operated by a guardian until the minor becomes a major.
The minor remains the account holder, while the guardian handles the account according to the applicable requirements. The minor and guardian also need to comply with the relevant KYC requirements.
When the minor attains majority, additional formalities are required for continuing the account in the holder’s own capacity.
Basic Services Demat Account
A Basic Services Demat Account, or BSDA, is a category designed for eligible individual investors with specified account and holding conditions.
Under the current framework, an individual can qualify where they have only one Demat account in which they are the sole or first holder, and only one BSDA across all depositories. The value of securities held must not exceed ₹10 lakh under the applicable BSDA threshold.
The BSDA also has a separate charge structure. SEBI revised its framework in 2024, increasing the applicable holding threshold to ₹10 lakh. In December 2025, SEBI further excluded Zero Coupon Zero Principal bonds and delisted securities from the securities considered for the threshold calculation.
This makes BSDA different from a regular Demat account in terms of eligibility and applicable maintenance charges. Investors comparing account costs with their broader investment plans can also use a SIP Calculator to estimate the potential value of regular mutual fund investments based on the investment amount, period and assumed rate of return.
NRI Demat Account
Non-Resident Indians (NRIs) can also maintain Demat accounts in India, subject to the applicable foreign exchange and securities market requirements.
NRI Demat accounts are classified based on whether the securities are held on a repatriable or non-repatriable basis. Separate Demat accounts are required for these two categories.
The associated banking arrangement can also involve NRE or NRO accounts, depending on the nature of the investment and applicable repatriation conditions. RBI rules specify different treatment for NRE and NRO funds and their repatriability.
NRIs considering an account can therefore check the applicable account structure and documentation with the relevant DP and authorised bank.
Conclusion
Demat accounts in India can be structured in different ways depending on ownership, age, residency and eligibility. Regular individual, joint, minor, BSDA and NRI accounts each have distinct requirements and conditions. Reputable platforms like 5paisa can offer Demat account services for investors who are assessing the account structure that suits their investment requirements. Reviewing the applicable eligibility criteria, charges and services can help investors understand the account type before completing the opening process.
