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Demat Account

WHAT IS DEMAT ACCOUNT

Demat Account is an account that is used to hold shares and securities in electronic format. The full form of Demat account is a dematerialised account.

FEATURES & BENEFITS OF OPENING A DEMAT ACCOUNT

. Demat accounts were introduced in India in the year 1996, prior to which shares and securities were physically issued and traded.

DOCUMENTS REQUIRED FOR OPENING DEMAT ACCOUNT

A Demat account is similar to any other bank account, except that it is used to hold securities and other financial instruments.

HOW TO CONVERT PHYSICAL SHARES TO DEMAT

As per the notification issued by SEBI on 8 June 2018, SEBI is aiming for 100% dematerialisation of shares within the target date of 5 December 2018.

HOW TO TRANSFER SHARES FROM ONE DEMAT ACCOUNT TO ANOTHER

Similar to the workings of a bank account, a Demat account can be used to transfer shares from one account to another.

DIFFERENCE BETWEEN DEMATERIALISATION VS. REMATERIALISATION

Dematerialisation: It is the conversion of the physical share and debenture certificates to an electronic form.

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