What Is a Demat Account?

Salaam. Why do we need a demat account?

According to the Securities and Exchange Board of India (SEBI), a Demat Account is similar to a bank account holding electronic share certificates and other securities. Demat Account is an abbreviation for dematerialization account, which simplifies the process of holding investments such as shares, bonds, government securities, mutual funds, insurance, and ETFs by removing the issues of physical handling and maintenance of paper shares and related documents.