Demat Account
An account with a depository in which securities are held in electronic form in the investor's name.
How it is identified
Test: the account is opened with a depository participant and holds securities as a beneficial owner record at NSDL or CDSL
Unit
qualitative
In depth
The demat account is where shares actually live, which is the distinction from the trading account, where orders are merely placed. Because holdings are recorded in the investor's own name at the depository, they survive a broker's failure — the single most important structural protection in Indian retail investing. Nomination is mandatory or requires an explicit opt-out, and appointing one avoids a lengthy transmission process for heirs. Reading the depository's own alerts, which arrive independently of the broker, is how unauthorised debits are caught.
Worked example
Closing a trading account and moving to another broker leaves the shares exactly where they are, in the demat account. Only the route for placing orders changes; the ownership record does not.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Demat Account” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.