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(AKA: Demat, Dematerialized Account, Demat Account)

Demat Account (Dematerialized Account)

Executive Definition

An electronic account used to hold financial securities like stocks, bonds, and ETFs in dematerialized digital format.

Demat Account

A Demat Account (short for Dematerialized Account) holds shares, stocks, mutual funds, government bonds, and ETFs in an electronic format rather than physical paper certificates.

How it Works

When you buy shares via a stockbroker (like Zerodha, Groww, or Angel One), the securities are credited electronically to your Demat Account maintained by central depositories in India (NSDL or CDSL).

Key Components

  • DP (Depository Participant): The broker interfacing between you and NSDL/CDSL.
  • DP ID & Client ID: Unique identifiers for your electronic shareholding.

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