A Demat account is used to hold eligible securities in electronic form. It replaces the need to keep physical share certificates and makes it easier to view holdings in one place.
What does a Demat account do?
When securities are held in dematerialised form, the details are recorded electronically through the relevant depository system. A Demat account is generally used for holding; it is different from the account or platform used to place an order.
Simple distinction: a Demat account is generally for holding securities electronically, while a trading account is generally used to place eligible buy or sell orders.
What is usually required?
The exact requirements are determined by the partner platform and verification process. In a typical online journey, users may be asked for PAN, identity and address information, bank details and a live verification step.
- Keep your own PAN and bank details ready.
- Review the partner platform’s terms and privacy policy before sharing information.
- Never share an OTP, password or PIN with another person.
Before you continue
Account opening, verification and activation are handled by the authorised partner platform. Read all displayed terms carefully. This guide is general information only and does not recommend any investment or guarantee a result.
Visit SEBI’s official website