Why should you have a Demat Account:
As it is difficult to hold shares in physical forms because it involves a lot of paperwork, long process and risk of fake shares. So, for simple and seamless trading and investing, Demat account is must to trade in India’s stock exchanges. Although the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form but this option is not preferable any more. A demat account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds etc. So, it involves the process of converting physical shares into electronic form and credited to investor’s demat account.