If you want to come into the stock market and desire to buy some shares then you need to have a Demat account. Shares and securities are held electronically in a Demat account instead of the shareholder taking physical control of certificates. A Demat account is opened by the investor while registering with an investment broker (or sub-broker). The Demat account number is quoted for every transaction to allow electronic resolution of trades to take place. Every investor should have a Demat account for the reason of transacting shares. In simple words to understand Demat Account, if you have some money, then want to put it in the bank and for that, you need to have a bank account to keep your money, same as a Demat account is where your shares or securities are kept in electronic form. It is an account with that you can be stored your shares. When you buy shares, they would be buying from the trading account and then stored in your Demat account. If you wish to sell, they would be picked-up back from your Demat account to your trading account and sold in open stock markets at BSE or NSE or any other stock exchanges.
Documents required in opening Demat Account