A Demat (Dematerialized) Account is an electronic account that holds securities in digital form, eliminating the need for physical certificates.

For SGBs, demat account: - Holds your SGB units electronically - Enables buying/selling on stock exchanges - Receives interest payments (to linked bank) - Required for secondary market transactions

Key features: - Operated by depositories: NSDL or CDSL - Accessed through Depository Participants (brokers/banks) - Unique account number for identification - Annual maintenance charges may apply

Note: For primary SGB subscription, demat is optional - you can choose "Bond Ledger Account" with RBI. But for secondary market trading, demat is mandatory.