A Demat (dematerialized) account stores securities electronically, replacing physical share certificates.
India-Specific Concept
In India, a Demat account is mandatory for trading stocks. It's managed by two depositories:
- NSDL (National Securities Depository Limited)
- CDSL (Central Depository Services Limited)
How to Open
- Choose a broker (Zerodha, Groww, Angel One)
- Complete KYC (Aadhaar, PAN card)
- Demat account created within 24-48 hours
- Link bank account
- Start trading
Growth in India
India's Demat accounts have exploded from ~40 million (2020) to over 150 million (2025), driven by:
- Smartphone penetration
- Low-cost brokers (Zerodha disrupted with flat-fee model)
- COVID lockdowns pushing people to invest
- Mutual fund SIP popularity