A demat (dematerialised) account holds shares, bonds, mutual fund units and other securities in electronic form. It is linked to a trading account when securities are bought or sold on stock exchanges.
Accounts are opened through depository participants, such as SEBI-registered brokers and banks. Account charges, platform features and customer support differ between providers, so the fee schedule and terms are worth reading before opening one.
Holding securities electronically replaced paper certificates, which removed the risks of loss, damage and delay in transfer. Details such as the nominee and the linked bank account should be kept current.
Market investments carry risk, and past performance does not predict future results. Dhimson Cover provides educational information. Account and trading services are offered by regulated intermediaries, not by Dhimson Cover.
Key points
- Electronic holding of listed securities
- Opened through SEBI-registered depository participants
- Charges and platform features differ between providers
- Nominee and bank details should be kept current
- Investing involves risk - understand it before you start
General information only — not financial, legal or tax advice. Dhimson Cover does not sell, arrange, compare or recommend any product. Rules, terms and conditions differ between providers and change over time, so always read the provider's own documents or the official source.