A Demat account allows the investors to hold their securities in an electronic form instead of the physical form. It makes the entire process of trading, investing, monitoring and holding shares/stocks more convenient and faster.
Much Safer: Earlier when there were no Demat accounts, the physical form of shares were very difficult to store and maintain. There was always a risk of it being misplaced, stolen or damaged.
Indispensable for Trading: You cannot trade in the stock market if you don’t have a Demat account. Since stock trading is done electronically, unless you have a Demat account for buying and selling publically listed shares, you won’t be able to carry out any transactions. It is mandatory to settle trades in a Demat form (electronically) on any stock exchange.
Multiple Securities Under One Roof: It can be extremely confusing for investors to maintain separate accounts for various financial products like debt securities, equity, mutual funds and so on. A Demat account takes this hassle away from the investors and allows them to preserve multiple securities in one single account.
Flexible : Demat accounts come with multiple accessing options as they can be operated electronically. This means you can buy, sell or simply monitor your investments from anywhere. You don’t have to even sit in front of a computer necessarily and can access your record using a laptop, smartphone, tablet or other such smart devices