What is a Demat account ?
A Demat Account, also known as a Dematerialized Account, offers the ability of keeping shares and other securities electronically. Shares are purchased and maintained in a Demat Account during online trading, making it simple for consumers to transact. All of a person's investments in bonds, mutual funds, exchange-traded funds, shares, and government securities are kept together in a demat account.
Demat made it possible for the Indian stock exchange to go digital and improved SEBI oversight. Additionally, by storing stocks in electronic format, the Demat account decreased the chances of theft, destruction, and fraud. NSE introduced it for the first time in 1996.
Initially, investors had to go through a manual process to open an account, and it took a few days for it to be active. One can now open a Demat account online in only five minutes. The end-to-end digital method helped make Demat more well-known after it soared during the pandemic.
SEBI has made it necessary for investors to hold a Demat account. If you don't have a Demat, you cannot trade on the Indian stock exchange.
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