Glossary
Demat account: meaning, example and why it matters
An account that holds your shares and other securities in electronic form. It is separate from the trading account you use to place orders.
Worked example
You place an order for 10 shares through your trading account. After settlement the 10 shares appear in your demat account as electronic holdings, in the same way a deposit appears in a bank account.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Listed shares in India are held in electronic form, so a demat account is needed to hold them. It also records corporate actions such as bonus shares.
Related terms
See it in practice
Frequently asked questions
Is a demat account the same as a trading account?
No. The trading account places orders and the demat account holds the shares. They usually work together and are opened with the same broker.
Is this page investment advice?
No. Demat account is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.