What is a Demat account? How is it useful?
A Demat Account starts for Dematerialisation Account. It is an account where your financial assets such as shares of companies, bonds, commodities can be stored in electronic or digital format. Without a Demat-Cum-Trading account by a Securities Broker, you wont’ be able to buy, sell or hold any of the financial assets in digital format.
Disclaimer: Securities Market is subject to Market Risks, please consult your Certified Financial Advisor before investing.
A Demat account is often compared to a savings account as they are required for a similar use case. However, instead of storing your cash, a Demat account stores shares and other securities your purchase from the stock market. It holds the shares electronically and keeps them safe. The Securities and Exchange Board of India (SEBI) made it compulsory for investors and traders to own a Demat account to facilitate online trading. You can open an online demat account by approaching a SEBI registered broker like IIFL Securities. Opening a free Demat account with IIFL securities is also fairly simple. You visit their website, fill out an online form, and submit a few documents to open a Demat account and begin investing.