Demat account is the abbreviation of ‘Dematerialized Account’. (Dematerialized account refers to an account which an Indian citizen must open with the depository) participant (banks, stockbrokers) to trade in listed securities in electronic form wherein one can hold shares of various companies in the Dematerialized {electronic} form. Access to De-mat account requires an internet password and a transaction password. Transfer and purchase of securities can then be initiated. Purchase and sale of securities on the Demat account are automatically made once transaction is confirmed and completed.
