How does a demat a/c work?

Others 1887 views 5 replies

1. What is a demat a/c?

2. How does it work?

3. When his it necessary to obtain?

4. who is eligible to obtain it?

 

Replies (5)

Demat refers to a dematerialised account.

Just as you have to open an account with a bank if you want to save your money, make cheque

payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just

like a bank account where actual money is replaced by shares. You have to approach the DPs

(remember, they are like bank branches), to open your demat account.

 

 

 

 

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised form. Although the market

regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500

shares to be settled in physical form, nobody wants physical shares any more. So a demat

account is a must for trading and investing.

see

thanks Manmohan

thanks for ur useful message


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