Demat account
Also called: demat
The account where the shares you own are held electronically, at one of India's two depositories, NSDL or CDSL.
Demat is short for dematerialised. Until the late 1990s Indian shares were paper certificates. Now they are entries in a demat account at NSDL or CDSL. Your broker is only the counter through which you reach that account, which is why your shares stay in your name even if the broker shuts down.
To invest you need three accounts: a bank account for money, a trading account with a broker to place orders, and a demat account to hold the shares. Brokers open the last two together.
Example
You buy 20 shares on Monday. The money is blocked in your trading account straight away, and on Tuesday the 20 shares appear in your demat account. The depository’s monthly statement, sent to your email, lists them as well.
Watch out
Never share an OTP or TPIN with anyone, including someone who says they are calling from your broker. Those codes authorise shares to leave your account.
Learn it properly in
Chapter 2.1: How to open a demat account in India, and what happens after you tap Buy