Demat

The term “demat“, in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors ┬áby the Securities and Exchange Board of India SEBI. In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investors while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place.