Demat is a shorthand for dematerialization. It is the conversion from physical shares to electronic. You can hold your shares electronically with a Debat account. It can be used to hold your shares and also allow you to trade on it. It can be summarized as a platform that makes it easy to trade shares. You will hold shares in the account instead of money. It works exactly like a bank accounts. Demat accounts can be used to trade any type of securities. It’s cheaper than going through a broker. It will notify you if there is any change in securities such as right issue, bonus, or dividend. This information will be provided to you.

• Your shares may be held in physical form, i.e. You can lose your rights to shares if you hold them in physical form, such as. You will hold your shares electronically, so there won’t be any such issues with a Demat Account. SEBI also requires that you hold shares in a Demat bank account. You will no longer have to hold shares in physical forms. Every transaction involving trading in shares will also be recorded in your account, as soon as the transaction is completed.
• Demat accounts allow you to purchase or sell shares anytime you wish. There are no paper requirements to purchase or sell shares. You can immediately buy shares and earn profit. In short, you can make quick decisions. In the past, selling and buying shares was difficult. But now, it’s much simpler than ever. You can simply tap on your phone to trade shares.
• You can also borrow on your shares with a Demat Account. If you don’t use your account for the moment, you can freeze it. Once you are ready to use your account again, you can unfreeze it.
• It will also give you a list of shares you have traded. You can also check the date when you purchased or sold shares. The money from your wallet will be taken out of your wallet and credit will be made to your account as soon as you have purchased a share. You can also sell shares. Shares will be debited from the account and money added to your wallet. This means that you can track all your transactions.

You will need to follow certain instructions when opening a Demat Account. You can find such instructions at to open a Demat bank account.