DEMAT Account came into existence in India in 1997, before which stocks and shares were issued and traded in physical paper form. With the age of computers and technology, shares and securities are held electronically in a dematerialized form (DEMAT Account), instead of the investor taking physical possession of certificates. It allows you to buy and sell as well as transact conveniently without the need of any paper work. Open your DEMAT Account by registering with a Stock Broker from Thainadu Group of Companies.
Nowadays, all trades are settled in dematerialized form, even though the Securities and Exchange Board of India (SEBI), the market regulator has allowed trades of up to 500 shares to be settled in physical form, trading using a DEMAT account is widely accepted. Hence, you need to have a Demat account for dealing in Stocks and Shares.
A dematerialised (Demat) account is an account that allows you to hold your financial instruments electronically. If a savings account is used to hold your money, a demat account is used to hold your shares.
It is important to note that as an investor, you cannot trade in the stock market without a demat account. You can hold the certificates of all your financial instruments in a Demat account such as Mutual Funds, Exchange Traded Funds (ETFs), Shares and Bonds online.
A Trading account is used for buying and selling stocks in the stock market. But trading account not only holds, but also the cash, securities and other types of investments. To execute certain transactions through trading account, a Demat account is largely necessary.