DEMAT means Dematerialized Account. Nowadays in India if one needs to participate in Stock Market for trading shares it is compulsory to open a demat account. As the name suggests it is a electronic form which contains the details of the person concerned including his share trading transactions and is linked to his bank account. In the past share trading was carried out in paper document which had the risk of loosing the investment if the document went missing. But now with the arrival of Demat the transactions are electronically logged into his account and his investment remains safe.
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