What kind of account is needed to be opened in the bank for trading in securities?

In order to trade in securities, one needs to open a Demat account and a trading account from a DP (Depository Participant) that could be a Bank, NBFC (Non-Banking Financial Company), Brokerage firm , or any other financial institution .

A securities account, also known as a brokerage account, is an account that holds financial assets such as securities on behalf of an investor with a bank, broker, or custodian. Investors and traders typically have a securities account with the broker or bank through which they buy and sell securities.

A Demat account is also referred to as a Dematerialised account. The physical shares and securities that you purchased are converted or dematerialized and stored in an electronic format here. The SEBI (Securities Exchange Board of India) passed a regulation in 1996 mandating the use of a Demat Account in order to trade on the stock exchanges such as the BSE (Bombay Stock Exchange) or the NSE (National Stock Exchange).
A Demat Account is comparable to a bank account. When you sell or buy shares, the number of shares in your account is either debited or credited.