Dematerialization or DEMAT refers to the movement from paper certificates or physical form, to an electronic format. Dematerialization aims to ease the process of purchasing, selling, transferring, and holding securities, making it cost-effective and safe. In DEMAT form, all securities are stored in an electronic format instead of a physical certificate.
Many online trading platforms provide investors with an option to link their demat account to their bank account. With this, the user can transfer funds electronically. The process eliminates the hassles related to drawing cheques and transferring the funds manually.