Please note that you can implement any cash in or cash out transactions in your demat account. Even your dividends are directly credited to your bank account based on the information of ownership uploaded by the DP to the registrar. Please note that there will not be any withdrawal from the demat account. Demat account is like a bank account in that it holds securities and shares just as a bank holds cash. But you cannot any cash with your demat account. Any transaction in a demat account will have to be executed through the trading account only. For starters, don’t get confused between your demat account and your trading account. Also, don’t get confused between your demat account and your bank account. They exist for a different purpose altogether.
Demat Account holds shares that you trade in the market and Trading account hold the funds for this trading to take place. Whenever you buy a share, the amount is being deducted from your trading account and the share is transferred to your Demat account. Perhaps, you are talking about withdrawing funds from Trading Account, yes that can be done. In India we follow T+2 rolling pattern, i.e. the amount is credited to your bank account on the 3rd-day latest. Most brokers also offer you an instant sale facility where you can get the credit on the same day. The brokerage rate will be slightly higher in this case.