Stock MarketBeginner
Demat Account
An electronic account that holds your shares and securities in digital form.
Detailed explanation
Securities sit with a depository — NSDL or CDSL — and are accessed through a depository participant, usually your broker. The demat account stores holdings, while a linked trading account places the orders and a bank account settles the money.
Example
Buying 100 shares credits them to your demat account on T+1, while the funds debit from the linked bank account.
Why it matters
It is the mandatory gateway to equities, ETFs, bonds and IPO allotments in India.
Key points
- Demat holds; trading account transacts.
- Charges typically include AMC and transaction fees.
- Nomination and two-factor authentication should be set up on day one.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.