Why Demat Account Is Must For Today's Investors


The financial market in India is rising and is expected to become one of the leaders internationally in attracting more individual investors. The booming financial market will stimulate the growth of the Indian stock market, which encourages more retail participation. 

Today's stock market investors enjoy online trading services based on Demat accounts. The stock market adopted the online trading system two decades back. There is no scope for paper-based securities in the stock market. Companies have to issue their shares in dematerialized form. To hold these securities, you require an online Demat account and a trading account to trade these securities on the stock exchanges. Now you can trade electronically in all segments of the stock market, whether it is the cash market or derivative market. The National Stock Exchange (NSE) was the first stock exchange to open up an internet-based trading system for its members in India. 

The stock market is the set of stock exchanges that facilitate investors to trade online. Investors cannot connect to a stock exchange directly to buy or sell shares. A stock exchange facilitates services through its registered members called stock brokers. 

Thus, it makes the Demat account a must for today's stock market investors. Let us explain more about Demat accounts in the post.


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