What are the different types of DEMAT Account?

There are various types of Demat accounts designed to meet the diverse needs of investors. An investor can choose and open a Demat account with a broker based on their specific requirements. Below are the different types of Demat accounts:

Regular Demat Account:

This account is designed for resident Indian investors to hold securities in electronic form. When securities are bought or sold, they are credited to or debited from this account accordingly. A Demat account is required for delivery-based transactions, while it is not required for trading in derivatives (Futures & Options), as these do not involve delivery of securities.

Basic Services Demat Account (BSDA):

Introduced by SEBI to promote financial inclusion and ease of investing, BSDA is available only to individual investors who have or propose to have a single demat account where they are the sole or first holder, and only one BSDA across all depositories. The total value of securities held in the account must not exceed ₹10 lakh at any point in time. The annual maintenance charges are nil for holdings up to ₹4 lakh and capped at ₹100 + GST for holdings between ₹4 lakh and ₹10 lakh. If the value of holdings exceeds ₹10 lakh, the account is treated as a regular demat account and applicable charges may be levied. Other services and charges are applicable in the same manner as a regular demat account.

Repatriable Demat Account:

This account is meant for Non-Resident Indians (NRIs) who wish to invest in Indian securities and repatriate funds abroad. It is linked to an NRE (Non-Resident External) bank account and allows transfer of funds outside India in accordance with applicable regulations.

Non-Repatriable Demat Account:

This account is also meant for NRIs and is linked to an NRO (Non-Resident Ordinary) bank account. While it allows investment in Indian securities, the funds are generally not freely repatriable outside India and are subject to applicable regulations.

As per regulatory requirements, holding securities in dematerialized form is mandatory for trading in the Indian stock market.