What is a Demat Account?

A Demat account, short for “Dematerialised account,” is an account where you can store your shares and other securities in electronic form. It acts like a bank account—but instead of storing money, it holds shares, bonds, mutual funds, exchange-traded funds (ETFs), and even government securities.

When you buy shares on the stock market, they are credited to your Demat account. When you sell them, they are debited. This process is automatic, secure, and fast.