Why is a Demat account in trading so essential?

<p>A Demat account is required to trade in shares electronically. This account holds securities in an electronic form and dematerialises them. Without a Demat account, an investor cannot trade in the stock market.<br></p><p id="isPasted">A Demat account has many advantages over investing in paper securities, making it the preferred choice for many investors as they recognise the importance of demat account.</p><p>"A Demat account holds your investments in an electronically-readable format."</p><p>The primary advantage of a Demat account is that it instantly transfers securities from one person to another without any paperwork.</p><p id="isPasted">This system reduces the chances of fraud and delays expected in the previous paper-based system, where certificates had to be physically moved around.</p><p>People are also in need of a demat account as they have to pay stamp duty on the transfer of securities, which is applicable in the case of physical certificates if the person has no demat account.</p>