Market basics

What is Demat account?

Also called: Dematerialised account

Hinglish mein padhein: Demat account kya hai?

A demat account holds your shares and other securities in electronic form, the way a bank account holds money.

Demat accounts are maintained by depositories — NSDL and CDSL — through depository participants such as brokers and banks. When you buy shares they are credited to your demat account after settlement.

You also need a trading account with a broker to place orders. Most brokers open both together.

Related terms

Trading accountA trading account with a SEBI-registered broker is what you use to place buy and sell orders on the exchange.
Settlement (T+1)Settlement is when shares and money actually change hands. Indian equities settle on T+1 — one working day after the trade date.
StockA stock (or share) is a small unit of ownership in a company. Owning shares gives you a claim on part of its profits and assets.