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Demat Account

Understand in detail what is demat account. Features and benefits of Demat Account.

Reena_Das
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Demat Account

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  1. Demat Account

  2. history of demat account • Trading for shares held in demat account form started at NSE in 1996. This was the beginning of a new era for the trading of paperless capital markets. • If an investor buys a share today, two days from now it will be credited to the investor's account. • Today, shares are moved to demat account of the investor.

  3. what is demat account • Demat Account is an account used to hold shares and securities in electronic format. The full form of the Demat account is a dematerialized account. • The aim of opening a Demat account is to keep shares that have been purchased or dematerialized (from physical to electronic shares), making it easier for users to exchange shares during online trading.

  4. Benefits of Opening a demat account Following are The benefits of Opening a Demat account: • Very Easy and convenient way to hold securities • It is MUCH Safer than paper-shares • Reduced paperwork for transfer of securities. • Reduced transaction cost • No "odd lot" problem: even one share can be sold • ALSO THE Transmission of securities is done by the depository participant, eliminating the need for notifying companies. • A single ONLINE Demat account can hold investments in both equity and debt instruments.

  5. how to open a demat account • To open a demat account, the individual needs to approach the DP and fill up the form for account opening. • Once the account opening form is duly filled, one needs to enclose the photocopies of the needed documents like the proof of identity and the proof of address. • After which, an agreement must be signed with the DP which has all the details about the duties of the trader as well as the DP. • The Demat account is then opened by the DP and the account holder is given the unique demat account number.  • All your investments are credited to the demat account. In case you sell the securities, the demat account is debited.

  6. THANK YOU

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