A demat account is the electronic equivalent of a physical share safe. All listed securities in India must be held in demat form (since 2019 for all companies). Two depositories operate in India: NSDL (National Securities Depository Ltd) and CDSL (Central Depository Services Ltd).
Investors access their demat accounts through DPs (Depository Participants) — usually banks or stockbrokers. The DP is an intermediary between the investor and the depository.
Securities Held in Demat
- Equity shares, bonds, debentures
- Mutual fund units (in statement of accounts; not mandatory demat)
- ETFs, REITs, InvITs, SGBs
- Government securities (via RBI Retail Direct)