A Demat (dematerialised) account holds your shares in electronic form, the same way a bank account holds your money.
Why you need one
Shares used to be paper certificates that could be lost or forged. A Demat account stores them safely and electronically, so buying and selling is instant and secure.
Key idea: A Demat account stores your shares; a broker/trading account lets you buy and sell them. You usually need both.
Documents you’ll need
- A photo and identity document (citizenship/ID).
- A bank account.
- Basic personal details.
How to open one
- Choose a bank or licensed depository participant.
- Submit your documents and complete KYC.
- Receive your Demat/beneficiary account number.
- Link it to a broker and (in Nepal) Mero Share for IPOs.
Practise while you wait
Account processing takes time — use it to practise on a simulator so you’re ready to trade the day your account is live.
Key takeaways
- A Demat account stores shares electronically.
- You also need a broker/trading account to transact.
- Opening one needs ID, a photo and a bank account.
- Practise on a simulator while your account is processed.
Practise this free on StockYatra
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