Why You Need a Demat Account for Trading and Investing in 2023

 A demat account is a digital repository for digitally stored securities. You must have a demat account if you want to use an online trading app and transact in shares online. These financial accounts, which are run by NSDL and CDSL, national depository institutions in India,  hold your shares similarly to how a bank account holds your money. A demat account is required for online stock trading if you want to trade shares or hold them on a delivery basis. However, To trade in futures and options, you do not require a demat account. Because they are settled in cash, all you need for this is a trading account. The ownership change is shown in your demat account when you purchase and sell exchange-traded funds (ETFs), equities, bonds, and mutual funds.

Anyone who wishes to trade shares must have a demat account, according to the shares and Exchange Board of India (SEBI). This means that demat accounts are absolutely necessary and that it is never permitted for anyone without a demat account to trade securities in India. 
However, regulatory compliance isn't the only reason for demat accounts. They give you a permanent record of all your securities trading transactions as well as valuable features and other benefits.

Opening a secure vault

Demat accounts operate like protected electronic purses for keeping financial assets. Investors don’t need to worry about missing the traditional certificates, getting them pillaged, or having their stock and bond holdings exchanged unfairly. Demat accounts also eliminate the opportunity for fraudulently signed on paper certificates. Securities transactions are promptly executed when using a demat account. They make it possible for investors to smoothly transform both their physical share certificates and their online securities into financial assets.

Online Trading
With the advancement of technology, there is a rapid increase of online trading platforms. Having a demat account enables you to seamlessly trade and invest in various financial instruments such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more.

Safe and Secure
A demat account provides a secure way to hold your investments. It eliminates the risks associated with physical certificates, such as loss, theft, forgery, or damage. Your securities are held electronically, reducing the chances of mishaps or fraudulent activities.

Easy Transfer and Settlement
Owning a demat account simplifies the process of buying and selling securities. It facilitates quick and hassle-free transfer of shares, ensuring prompt settlement of transactions. This makes it easier to take advantage of stock market opportunities and manage your stock exchange portfolio effectively.

Record Keeping and Tracking
A demat account maintains a comprehensive record of your transactions, holdings, and investment history. It provides you with statements and periodic reports, allowing you to track your investments, monitor performance, and make informed decisions.

Online Access and Convenience
Most demat account providers offer online access, enabling you to manage your investments anytime, anywhere. You can monitor your portfolio, place trade orders, view account statements, and access research reports conveniently through web or mobile platforms.

Go through Kotak Securities for a hassle-free demat account opening, it offers 

•  3-in-1 account
• Low-cost online discount brokerage plans
• Zero brokerage plan for investors up to the age of 30 years

 Conclusion

As you consider all the above points, remember to read the demat agreement, specifically about costs and liability before signing on the dotted line.