India: Demat accounts, NSE and BSE

To invest directly in Indian shares, you need the right accounts and a basic grasp of the exchanges.

The accounts you need

• Demat account: holds your shares and securities in electronic ("dematerialised") form — like a digital locker.
• Trading account: used to place buy/sell orders on the exchanges.
• Linked bank account: for the money. Brokers typically bundle these together.

NSE and BSE

India has two main stock exchanges:

• NSE (National Stock Exchange): India's largest by volume; home of the Nifty 50 index.
• BSE (Bombay Stock Exchange): Asia's oldest; home of the Sensex index. Most large companies list on both; prices are near-identical.

Indices explained

The Nifty 50 and Sensex track baskets of large companies and act as a barometer for the market. You can invest in them cheaply via index funds and ETFs.

Regulation

Markets are overseen by SEBI, which protects investors and enforces rules — one reason to stick to registered brokers and platforms.

Key takeaway

A demat + trading account with a SEBI-registered broker is your gateway to Indian equities. For most beginners, buying a low-cost Nifty or Sensex index fund is a simpler start than picking individual stocks.