(i) The lack of paperwork enables quicker transactions and higher efficiency in trading
(ii) The risks pertaining to physical certificates like loss, theft, forgery and damage are eliminated completely with a DEMAT account.
(iii) Trading has become more convenient as one can trade through computers at any location, without the need of visiting a broker.
(iv) Certain banks also permit holding of both equity and debt securities in a single account.
(v) Banks also provide dedicated and trained customer care officers to assist through all the procedures.
(vi) One can also choose to take a loan against securities which are held in a DEMAT account by offering it as a collateral to the lender.

The various powers of SEBI are as follows:
(i) Powers Relating to Stock Exchanges & Intermediaries:
SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities.It can ask information from the stock exchanges and intermediaries regarding their business transactions for inspection or scrutiny and other purpose.
(ii) Power to Impose Monetary Penalties:
SEBI has been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations.
(iii) Power to Initiate Actions in Functions Assigned
SEBI has a power to initiate actions in regard to functions assigned. For example, it can issue guidelines to different intermediaries or can introduce specific rules for the protection of interests of investors.
(iv) Power to Regulate Insider-Trading:
SEBI has power to regulate insider trading or can regulate the functions of merchant bankers.
(v) Powers Under Securities Contracts Act:
 For effective regulation of stock exchange, the Ministry of Finance issued a Notification on 13 September, 1994 delegating several of its powers under the Securities Contracts Act to SEBI.
(vi) Power to Regulate Business of Stock Exchanges:
SEBI is also empowered to regulate the business of stock exchanges, intermediaries associated with the securities market as well as mutual funds, fraudulent and unfair trade practices relating to securities and regulation of acquisition of shares and takeovers of companies.

The functions of SEBI are as follows:
(i) Safeguarding the interests of investors by means of adequate education and guidance.
(ii) Regulating and controlling the business on stock markets.
(iii) Conduct inspection and inquiries of stock exchanges, intermediaries and self-regulating organisations and to take appropriate measures wherever required.
(iv) Barring insider trading in securities.
(v) Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities markets.
(vi) SEBI Issues Guidelines and instructions to businesses concerning capital issues.