Demat trading, short for dematerialized trading, refers to the process of trading financial securities electronically. In this system, physical share certificates are converted into electronic form, making it easier, faster, and more secure to buy, sell, and hold shares.

Key Features of Demat Trading:

• Dematerialization: Physical securities are converted into electronic form, eliminating the need for physical certificates.
• Efficient Settlement: Transactions are settled electronically, reducing the time and paperwork involved.
• Reduced Risks: Eliminates risks associated with physical certificates such as theft, loss, forgery, and damage.
• Convenience: Makes it easier to track and manage holdings, as all transactions are recorded in an electronic account.