Demat Account Meaning: Everything You Need to Know

A  Demat account , short for dematerialised  account, is an account used to hold financial securities in electronic form. In the Indian financial system, a Demat account is commonly  required  for trading or investing in instruments such as shares, bonds, exchange-traded funds, and other market-linked securities. It usually helps  eliminate  the need for physical share certificates, which were traditionally used before electronic settlement became standard. This article explains what a Demat account is, how it  works,  and its benefits.   What Is a Demat Account?   The  Demat account meaning  refers to an account that allows investors to store securities digitally instead of holding them in paper form. These accounts are usually  maintained  by depositories through registered intermediaries known as depository participants. When an investor buys or sells securities, the corresponding units are credited or debited from...