What is an deemat account?

Related to share investment

The term refers mainly to the Indian stock market.

"Demat shares" are shares that are in electronic, nor paper, form. Demat is short-hand for "dematerialised," i.e., not in paper ("materialized") form.

Trading dematerialised shares is demat trading.

Dematerialisation is the process by which shares in physical form are cancelled and get credited in the form of electronic balances, which are maintained at a depository.

The opposite of dematerialization is called rematerialization, which means that demat shares are converted into paper certificates.

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