Today, investing in the stock market in India has become easier than ever. By 2026, more than 210 million demat accounts will be activated in the country, which clearly shows that millions of new investors are entering the market every year. But one question comes to many people’s mind – “How to sell shares from a demat account?” If you are also starting to invest, there is no need to panic. I will explain to you in simple language how to sell shares from a demat account, what role the broker plays in this, and how to get the money after selling the shares. After this guide, you will be able to confidently understand the entire process.
What is a Demat Account and How It Stores Shares ?
If you want to start investing in the stock market, it’s important to first understand a Demat Account. Demat stands for Dematerialized Account. This means that your purchased shares are no longer stored in paper form, but in digital or electronic form. You can understand it this way: just as your money is stored digitally in a bank account, a Demat account is a digital locker for storing your shares. Suppose you purchased 20 shares of a company. Now, you won’t receive these shares in the form of a physical certificate. Instead, they will be credited directly to your Demat account.
This is why buying and selling shares today has become easier and faster than ever before.
Who stores shares in India?
Now comes an important question: where are your shares safe?
In India, depositories are responsible for safekeeping. These institutions electronically record and secure all investor shares. There are two main depositories operating in India.
NSDL (National Securities Depository Limited) : It is one of India’s first and largest depositories, safeguarding the shares of millions of investors.
CDSL (Central Depository Services Limited) : It is the second largest depository, managing millions of Demat accounts in India.
Role of a Broker in Selling Shares From a Demat Account
Why is a Stock broker necessary?
Many new investors think they can sell shares directly from their Demat account, but this is not the case. The main purpose of a Demat account is to keep your shares safe. To buy or sell shares, you always need a broker’s trading platform. A broker acts as a connection between you and the stock exchange (NSE or BSE). When you place a sell order, the broker transmits the order to the exchange, and the trade is executed when a buyer is found.