METATrading Academy

Share market basics

Demat accountshares rakhne ka electronic account

An account that holds your shares and securities in electronic form, opened through a depository participant and linked to your trading account.

A demat account, short for dematerialised account, stores your shares, bonds, ETFs and mutual fund units electronically, the way a bank account stores money. It is held with one of India's two depositories, NSDL or CDSL, through a depository participant (DP), which is usually your broker. You need a demat account to hold delivery shares; an intraday trader technically needs only a trading account, but brokers open both together. Opening requires KYC: PAN, Aadhaar, bank proof and a signature. When you buy 10 shares of SBI for delivery, they appear in your demat holdings after T+1 settlement. When you sell, they leave. DP charges apply on each sell transaction, and some DPs charge an annual maintenance fee. Check both before choosing. Keep the login and the linked email secure, since the account holds your investments.

Lessons that use this term

Video
Basics7 min read

Investing vs trading: the two halves of the share market

The share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.