A Demat account is an account that holds financial securities in electronic form. In India, Demat accounts are maintained by two depository organisations, NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). There are 3 types of Demat account:
- Regular Demat Account: For the investors/traders who reside within India.
- Repatriable Demat Account: For the NRIs. Funds can be transferred abroad. It requires an associated NRE bank account.
- Non-Repatriable Demat Account: For the NRIs. The fund cannot be transferred abroad.\ It requires an associated NRO bank account