How to Choose the Best Demat Account?
Holding shares in an electronic format requires a dematerialised (Demat) account and opening a demat and a trading account is the first step to invest in stock markets. A demat account can hold a number of instruments such as debt securities, government bonds, Exchange-Traded Funds (ETFs), mutual funds among others apart from a security.
Similar to a bank account, if you buy stocks of a company, the same will be credited in your demat account and if you place a sell order, stocks will be debited from your account. Demat accounts are three types: Regular demat account which is used by Indian residents, Repatriable demat account and Non-repatriable demat account.
Demat accounts are maintained by National Securities Depository Limited (NSDL) and Central Depositories Services Limited (CDSL). Stock broking firms in India are registered with either of the depositories.