What is a Demat Account?

Demat refers to a dematerialised account. A demat account is needed for share trading (buy
Demat Account for Share Trading
and sell shares / stock)
. Most banks and some share trading brokers and financial institutions help to open demat account for share trading.

All such demat accounts are linked with a bank account for financial transactions. Demat account holds possession of shares electronically in your account.

All online trading and transactions that take place through demat account is handled by depository participant (DP). All share brokers / stock brokers, brokerage companies and R&T agents registered under the SEBI act can handle share trading transaction.


References:

  1. What is Investment
  2. Why Invest
  3. When to Invest
  4. How Much Money to Invest
  5. Where to Invest Money
  6. Demat Account for Online Share Trading
  7. SBI Securities Demat Account
  8. Demat Account Explained on Rediff Finance
  9. NDSL
  10. CDSL