Learn what is the full form and meaning of a demat account? How does it work?

A demat account is a short form for dematerialised account as financial securities are held in dematerialised i.e. electronic form in it. A demat account holds different types of securities like bonds, mutual funds, stocks, ETFs, and more. It keeps your investments safe and demat account providers also keep upgrading their security features by introducing data encryption, 2-way authorization, and other technologies. 


It is possible to buy or sell shares in odd lots from a demat account. The updates of upcoming IPOs can also be retrieved through a demat account. Corporate actions like stock splits, bonus shares, dividends, etc. are also credited directly to your demat account. Regular, repatriable, and non-repatriable accounts are the three basic types of demat account. The BSDA (Basic Services Demat Account) is a type of regular account that waives off your AMC (Annual Maintenance Charges) if the value of your investments is below Rs. 50,000. 


A demat account plays a key role in buying and selling shares. It also reflects the details of debit and credit of funds and shares through a detailed account statement. Moreover, you can also transfer shares from one demat account to another online by using CDSL’s Easiest or NSDL’s Speed-e facility nowadays. 
Location: Delhi, India

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