What is a demat account?

A Demat account, short for Dematerialized account, is an electronic account that holds your shares and securities in digital form instead of physical certificates. It acts like a digital locker where all your investments—such as stocks, bonds, mutual funds, and ETFs—are stored securely and can be easily transferred or sold. Opening a Demat account is essential for trading in the stock market, as it allows seamless and paperless ownership and transfer of securities.