A Demat account is additionally referred to as Dematerialized account. In other words, converting or dematerializing your physical shares within the electronic format is understood as holding a Demat Account. Demat account is employed to carry the shares and securities of publicly traded companies in an electronic form. With a Demat account, you’ll hold a good sort of investments like bonds, equity shares, government securities, mutual funds, and exchange traded funds. almost like a checking account , a Demat account is either credited or debited whenever you purchase or sell shares of a corporation .
It not only eliminates unnecessary paperwork, but also helps streamline the method of share trading. All of the Demat accounts in India are maintained by two organizations, namely National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).