It is compulsory to have a demat account for the investors to buy and sell shares in India. The investor has to open a demat account with a depository through a Depository Participant.
Demat Account is an electronic account where the investors hold shares of various companies in the dematerialised (electronic) form. Shares owned by the investors are held electronically in his/ her demat account. Demat Account gives the facility to an investor to buy or sell shares in a secure and safe way over the internet in electronic form.