The Demat account involves electronic storing of shares and securities which are maintained electronically for your trading account. So, if you are going to invest in securities such as shares, mutual funds, bonds, etc. you must have a Demat account. The account keeps all your financial securities at one place in electronic form. India adopted this system to mitigate the risk associated with paper shares. Therefore, the real motive behind the Demat system is to eliminate troubles due to paper
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