Demat is simply an account that allows you to hold your shares in an electronic format. A Demat account is a dematerialized account for your financial securities. By opening a Demat account, you can trade and invest in the stock market online, without any hassle. Demat Account Opening requires a Broker, who acts as a channel between the investor and the exchange. A Demat Account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place.