Different Types of Demat Account in India (2024)

The citizens of India generally use regular demat accounts. In India, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) provide regular demat accounts with the help of intermediaries like stockbrokers, depository participants, etc.
In the case of a regular demat account, the charges are based on the type subscribed, volume held in the account and all the terms and conditions set by the depository and the depository participant (DP).
The primary aim of a regular demat account is to make the trading operations even more easy and simple. It means the transfer of shares must be completed within few hours compared to weeks or months.
In today’s time, the regular demat account allows the investor to hold its shares in the electronic format rather than holding physical shares that reduce the risk of theft, damage, and robbery.
One primary benefit of having a regular demat account is it delivers convenience to all its users. The additional charges like market stamps and restrictions on selling shares have been washed away, helping investors save their hard-earned money.
Thus, having a regular demat account makes the entire process of handling the stocks and shares convenient and simple.
Apart from being convenient, it removes the process of paperwork and turns it into a cost-effective activity. The procedure of changing address, phone number and other major details have been made fast and less time-consuming with the help of regular demat accounts.
The citizens of India who have a regular demat account can easily transfer their holdings from an existing demat account to a different institution without paying any extra charge.
If a regular demat account holder ants to transfer a joint demat account, he/she will have to open a new account with the same names.

A repatriable demat account is good for NRIs who want to invest in the Indian Share Market quickly from anywhere worldwide. However, the transactions done by an NRI will be easily reflected in their demat account.
This account is useful for all Non-Resident Indians (NRIs) as it helps them transfer their funds to several foreign countries. However, that NRIs looking to hold a repatriable demat account will need an associated NRE bank account.
In India, if both residents and non-residents are looking to use a demat account to trade in shares, they can trade easily. Whereas, if a Non-Resident Indian (NRI) wants to open a repatriable demat account, he or she has to strictly follow all the rules of the Foreign Exchange Management Act (FEMA).
The Reserve Bank of India (RBI) has made it compulsory to open a trading account with a named institution primarily authorized by RBI.
To route an investment, an NRI has to either a Non-Resident External (NRE) or a Non-Resident Ordinary (NRO) account.
For opening a repatriable demat account, an NRI should create a copy of a PAN Card, passport, visa, overseas address proof like rental/lease agreement, utility bills, passport size photograph, canceled check leaf of NRE/NRO account.
All these essential documents are required and should be attested at the Indian Embassy of the country where the NRI stays.

Non-repatriable demat account is similar to a repatriable demat account, and it is also for non-resident Indians.
However, in this account, NRI does not have the right to transfer the funds abroad as it requires and associated NRO bank account.
Those NRIs who have earnings in both India and abroad face real challenges when it comes to finances. They also find it hard to keep a check on their bank accounts in a different country and send money to their home account.
If they have both NRE and NRO accounts, they will not have to face any difficulty at all. As per the guidelines regulated by the Reserve Bank of India (RBI), an NRI can hold up a paid-up capital of 5% in any Indian company.
On a repatriable basis, an NRI can invest in Initial Public Offers (IPO) by using an NRE demat and funds in their NRE (Non-Resident External) bank account.
If an NRI invests its money on a non-repatriable basis, then NRO and Non-Resident Ordinary Rupee (NRO) demat account will be used.
Similarly, if a person has a demat account before turning into NRI, In that case, he/she can easily convert their account into the NRO category after leaving the country or open a new account for trading.
In both these cases, the previously owned shares will be transferred to the holding account of NRO.
An NRI also has the opportunity to make investments in India by using his or her demat account with the help of the Portfolio Investment Scheme (PINS).
The plans of PINS allow an NRI to sell units of shares and mutual funds. The working of a PINS account is the same as an NRE account.
A separate PIN account is compulsory for equity trading, even if they have an NRE account. However, a NON-PINS account is majorly used for Initial Public Offerings (IPO) or investments in mutual funds. An NRI has to remember that he/she has to maintain only one PINS at a single point in time.