What is Demat account and why is it needed in trading?
The demat account (short for dematerialized account) is required by the investors to hold the securities in electronic format. In simple terms, you can think of it as a digital locker where you hold all your investments.
Through a demat account, investors can digitally hold securities like Shares, Bonds, NCDs, ReITs, InvITs, Gold bonds, Government securities, Mutual funds, Money market instruments, Securitized debt instruments, Postal savings scheme, Exchange Traded Funds (ETFs) etc.
Conclusion
Through a demat account, investors can digitally hold securities like Shares, Bonds, NCDs, ReITs, InvITs, Gold bonds, Government securities, Mutual funds, Money market instruments, Securitized debt instruments, Postal savings scheme, Exchange Traded Funds (ETFs) etc.