Sharekhan Blog

How a Demat Account Works: A Complete Process Guide

  • Jun 2, 2025

What is a Demat Account?

Demat account converts your stocks and other equity-related investments into electronic format. Just like a bank account is for your money, a demat account is for your investment portfolio.

Why should you have a Demat Account?

The demat account makes investing in shares a safe and streamlined experience. As the share certificates get converted to electronic format, it increases their accessibility and ease of handling.

As per the Securities and Exchange Board of India, opening a Demat account is necessary if you want to buy, store and sell shares. Demat accounts can be opened without possessing any shares and maintaining a zero balance. For this, you need a depository and a participant registered with the depository.

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by Team Mirae Asset Sharekhan

Guiding Wealth Creation since 1995

We've been ranked as India’s No. 1 Retail Broker by Asiamoney Brokers Poll 2023. Here, we bring you the latest in the world of Trading and Investments in our effort to Make the Markets work for YOU!

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OPEN FREE* DEMAT ACCOUNT