Technology has brought about a drastic change in our everyday lives. The stock markets too have not been left untouched by the change. During The late Eighties, he common man used to stay away from stock market because of sheer complexity of Paperwork which gave rise o duplication of share certificate, fake signature, transfer problem etc.Now Introduction to Demat Account solved all problems.
A demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs). You cannot trade in the stock market without a demat account. Any shares you are holding in paper form can also be dematerialized and maintained by way of electronic credit in your demat account.
Importantly, it does not attract stamp duty.