What Is A Demat Account?

DEMAT is a short term given to the dematerialised shares. Dematerialisation of shares simply means conversion of physical shares present in the paper form into the electronic form of shares. Now, the DEMAT account is an account in which the financial securities are held in the electronic form, it is like a locker facility, where you keep the shares owned by you instead of other essentials. In India, DEMAT accounts are maintained by two depository organisations NSDL (National Securities Depository Limited) and CDSL(Central Depository Services Limited).