How to Use a Demat Account: Buy/Sell Shares, Check Balance & More

15 Jun 2026|

6 min read |

by ICICI Securities Team

A demat account stores your shares and other eligible securities in electronic form. A trading account, on the other hand, is used to place buy and sell orders in the stock market. For listed equity investments, both accounts usually work together: the trading account is used to execute buy or sell orders, while the demat account is used to hold the securities after purchase.

However, not every investment necessarily requires a trading account. For example, some instruments, such as mutual funds, may be purchased or held without using a trading account, depending on the platform and mode of investment.

Many investors open a demat account but are not fully sure what to do after activation. You may want to know how to use a demat account, how to buy shares, how to sell them, where to check holdings and how to read account statements. This article explains these basics in simple terms for Indian investors.

What Can You Hold in a Demat Account?

A demat account can hold different types of securities in electronic form. These may include shares, ETFs, bonds, debentures, government securities and mutual fund units, where applicable.

Security Type	How it appears in a Demat Account
Equity shares	Credited after purchase and settlement
ETFs	Held like listed securities
Bonds and debentures	Stored in electronic form
Government securities	Reflected if held in demat form
Mutual fund units	May appear if held in demat mode

How Does a Demat Account Work?

A demat account works with your trading account and linked bank account. The trading account helps you place orders, while the demat account stores the securities after settlement.

When You Buy Shares

When you buy shares, the process starts through your trading platform. You place a buy order, the exchange matches it, and the required funds are debited from your bank account.

Once the trade is settled, the shares are credited to your demat account. India follows a T+1 settlement cycle for the cash market, which means settlement generally happens one business day after the trade date.

When You Sell Shares

When you sell shares, the flow works in the opposite way. You choose the shares from your holdings, place a sell order through your trading platform, authorise the debit of shares from your demat account.

Once the trade is executed, the shares are transferred from your demat account as part of the settlement process. As while buying, India follows a T+1 settlement cycle for the cash market, which means settlement generally happens one business day after the trade date. After settlement, the sale proceeds are credited to your trading account or linked bank account as per your broker’s process.

How to Use a Demat Account after Opening it

After your account is active, you should get comfortable with logging in, checking holdings, reviewing linked details, placing orders, downloading statements, tracking alerts, etc.

Log in to Your Trading or Demat Platform

Most investors can access their accounts through a broker’s website or mobile app. Use your user ID, password, OTP, biometric login or other approved security method. Avoid logging in through public Wi-Fi or shared devices.

Check Your Profile and Linked Details

Review your mobile number, email ID, PAN, bank account, nominee details and communication preferences.

Understand Your Dashboard

Your dashboard gives a quick view of funds, orders, holdings and reports.

Dashboard Term	Meaning
Holdings	Securities available in your demat account
Positions	Trades taken during the day or open trades
Available funds	Money available for placing orders
Order book	Orders placed, pending, executed or rejected
Trade book	Completed buy or sell transactions
Statements	Transaction and holding records

How to Buy and Sell Shares from a Demat Account

Buying and selling shares is done through an online trading or demat platform. When you buy delivery shares, the securities are credited to your demat account after settlement. When you sell delivery shares, the securities are debited from your demat account after the required authorisation.

Step	For Buying Shares	For Selling Shares
1. Log in to the platform	Log in using your user ID, password, OTP, biometric login or other secure authentication method.	Log in using the same secure authentication process.
2. Go to the trading or holdings section	Search for the stock you want to buy from the trading, order placement or watchlist section.	Go to the portfolio or holdings section and select the stock you want to sell.
3. Check funds or share availability	Make sure you have sufficient funds or margin available to place the buy order.	Check whether the shares are free for sale and not pledged, locked in, frozen or blocked for any reason.
4. Enter order details	Select Buy, enter the quantity, order type and price.	Select Sell, enter the quantity, order type and price.
5. Review order details	Review the stock, quantity, price, order value and applicable charges before confirming.	Review the stock, available quantity, selling price and applicable charges before confirming.
6. Authorise the transaction	For delivery purchases, the amount is blocked or debited as per the platform process. Shares are credited to the demat account after settlement.	For delivery sales, you may need to authorise the debit of shares from your demat account. This may be done through methods such as PoA/DDPI, DIS, electronic depository platforms or eDIS/TPIN-based authorisation, where applicable.
7. Place the order	Confirm and place the buy order.	Confirm and place the sell order after completing authorisation, if required.
8. Track order status	Track whether the buy order is open, executed, partially executed, rejected or cancelled.	Track whether the sell order is open, executed, partially executed, rejected or cancelled.
9. Check settlement and account update	After settlement, the purchased shares are credited to your demat account.	After settlement, the shares are debited from your demat account and the sale proceeds are credited as per the applicable settlement and platform process.
10. Download records or statements	You can check the contract note, ledger, holdings statement or transaction statement.	You can check the contract note, fund credit, holdings statement and transaction statement.

Different Ways to Check Your Demat Account Balance Online

You can check your demat account balance through your broker platform, depository portal, CAS or DigiLocker, where the facility is available.

Through Your Broker or Trading Platform

You can check your demat account balance by logging in to your online demat or trading platform and visiting the Portfolio section.

Step-by-Step Guide to Check Demat Balance Online

Here are the steps to check your demat balance online:

Step 1: Log in securely

Use your user ID, password, biometric login or OTP.

Step 2: Go to Portfolio

Select the Portfolio section from the main menu.

Step 3: Open Consolidated Portfolio or Demat Allocation

This section usually displays your securities and investment holdings.

Step 4: Check quantity, value and stock details

Review details such as available quantity, pledged quantity, average price and current market value, where available.

Step 5: Download or view statements

Go to the Statements section to view or download reports such as the consolidated portfolio statement, transaction statement or statement of funds/securities, depending on the facility available

Key Details to Check in Your Demat Account Statement

Your demat account statement gives important information about your holdings and transactions.

Detail	What to Check
Personal details	Name, PAN, demat account number and contact details
Holding details	Stock name, ISIN, quantity, free balance, locked balance and pledged balance
Transaction details	Buy, sell, transfer, pledge, unpledge and corporate action entries
Corporate actions	Dividends, bonus shares, split, merger and rights issue entries
Valuation details	Current value, quantity and portfolio movement

Common Reasons Your Demat Balance May Not Match Your Expectation

Sometimes your demat balance may look different from what you expected. This does not always mean there is an error.

Recent Trades Are Not Yet Settled

Shares bought today may not reflect instantly in holdings. Check the settlement timeline before raising a concern.

Shares Are Pledged or Locked In

Pledged or locked-in shares may appear separately. They may not be freely available for sale until the restriction is removed.

Corporate Action Adjustment Is Pending

Bonus shares, splits, mergers and rights issues may take time to reflect correctly in the statement.

Wrong Account or Old Statement Selected

If you have multiple demat accounts, check whether you are viewing the correct account and date range.

Conclusion

Checking your demat balance is simple once you know where to look. You can use your broker app, depository portal, CAS or DigiLocker, where available. Regular review keeps you aware of your holdings, transactions, account details and portfolio movement. It also helps you notice errors, missing credits or unusual activity early.