Demat account is needed in India to trade in__
1. Listed Stocks
3. Exchange Traded Funds
Choose the correct option:
Demat refers to a dematerialised account. Just as we open a bank account to hold money and make payments, we need to open a Demat account now to buy and sell securities (listed stocks), ETFs as well as debentures in the financial markets. Demat account is a requirement stipulated by SEBI for individual Indian Citizens. In the Demat account, shares and securities are held electronically instead of the investor taking physical possession of share certificates. Whenever an investor registers with an investment broker or sub broker, a Demat Account is opened by him/ her and the Demat account number is quoted for all transactions to enable electronic settlements of trades to take place.
This question is a part of GKToday's Integrated IAS General Studies Module