Demat account allows an investor to hold securities in an electronic form rather than physical form which has made the whole trading, investing, holding and monitoring of securities convenient and quick. For stock market trading it is utmost important to hold a demat account. It works same as a bank account, when shares are purchased your money gets deducted and vice versa.
There are two depositories who manage demat account:

• Central Depository Services Limited (CDSL)
• National Securities Depository Limited (NSDL)

To trade in share market, all you need is to hold a bank account, demat account and a trading account. Demat account helps you reduce risks, save cost, save transaction time and also increases liquidity. Under demat account, your share certificates are converted from physical form to electronic form so as to increase their accessibility. The facilities offered by demat account are:

• Intraday Trading Account
• Invest in US Equities
• PHYGITAL
• IPO Funding
• SIP through WhatsApp
• Dematerialization & Rematerialization

A demat account holds all the investments an individual makes in shares, exchange-traded funds, bonds and mutual funds, etc. in one place. It has become a necessary thing in case you want to invest in stock markets. It makes the entire process of share trading easy, secure and speedy. Demat account allows you to buy shares and safely store them. A good note is you can open a demat account without possessing any shares and can maintain a zero balance in your account.