Demat or Dematerialized Accounts are the modern and electronic variants of theearlier paper-based accounts. Dematerialization or the process of converting physical shares into electronic form is shortened to ‘Demat’ accounts.
Demat account serve the all-important purpose of storing your investment products in electronic form and allowing you to trade or invest on-the-go.
Think of Demat Accounts as the regular savings account of a bank, except Demat is for stock market investments. You need to have a Demat to be able to participate in the capital markets, besides it provides hassle-free trading, with zero paperwork involved.
Demat Account have to opened via the 2 depositories, CDSL and NSDL. These depositories come under the supervision of Market regulator, SEBI.