A Demat Account, short for Dematerialisation Account, allows you to hold your shares and assets electronically. This makes online trading easier for users. Investments such as government bonds, stocks, exchange-traded funds, and mutual funds can all be kept in one Demat account.
By introducing Demat accounts, the Indian stock market became more digital and encouraged SEBI to enforce better rules. Additionally, Demat accounts help reduce the risks of fraud, loss, and theft since everything is stored electronically. The NSE launched this digital service back in 1996.