Holding securities (shares, debentures, bonds, or government securities) in digital or electronic or dematerialised form is called ‘demat’.

If an investor wishes to purchase securities in the demat form, the seller has to give instruction to the registered Depository Participant to debit their account and credit the purchaser

beneficiary owner account. The beneficiary owner then directs the depository participant to receive credit of the securities.

Shareholders wishing to sell the securities, should give a delivery instruction to the Depository Participant to debit his

her account and credit the purchaser’s account. These instructions have to be given to the Depository Participant at least 24 hours before receiving the payment against such sale.