Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Demat account holds shares, bonds, ETFs, and other securities in electronic form, eliminating physical certificate risks.
Demat account is your digital locker for stocks and bonds — needed to buy shares, ETFs, or IPOs in India.
Maintained with depository participant linked to NSDL or CDSL. Trading account with broker needed for transactions. Holdings appear in demat; mutual funds may be in demat or statement of account form. Annual maintenance charges vary by broker.
Open demat with broker, buy 50 shares of TCS at ₹3,800 — 50 units credited electronically. Sell 20 shares; remaining 30 stay in demat without paper handling.
Trading account executes buy/sell orders. Demat stores securities. Both required for stock investing; some brokers combine them.
Yes via demat MF platforms, but regular MF folios without demat work fine for most SIP investors.
Nominee or legal heir transmits securities via succession process with death certificate and required forms to DP.