what is DEMAT ACCOUNT?

 A Demat account (short for "dematerialized account") is a necessary account to hold financial securities (equity or debt) in a digital form and to trade in the share market. In India, Demat accounts are maintained by two depository organizations, the National Securities Depository Limited and the Central Depository Services Limited. A depository participant, such as a bank, acts as an intermediary between the investor and the depository. In India, a Depository Participant (DP) is described as an Agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. The Demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the dematerialized account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. A security is a tradable financial asset. The term commonly refers to any form of a financial instrument, but its legal definition varies by jurisdiction. Purchases and sales of securities on the dematerialized account are automatically made once transactions are confirmed and completed.