A demat account stores investments such as shares, bonds, and exchange-traded funds in electronic form. The word demat is short for dematerialized, meaning paper certificates are replaced by digital records.

How it works

A broker or depository participant connects your trading account to your demat account. The trading account is used to place orders, while the demat account receives securities after settlement.

Safety basics

Use a regulated intermediary, protect your login and one-time passwords, review transaction alerts, and understand every charge before opening an account.