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Q.

What is the meaning of DEMAT account.
Professional answer as well as layman language answer is preferred

Asked by wincent paul, 04 Aug '08 02:45 am
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Answers (2)

1.

When you buy company shares, you receive share certificates. You need to preserve them safely and need to produce them for any transaction, which is time taking. In stead, if you opt for DEMAT (De-Materialisation), you can convert them electronically as balance in your account. (Just like your bank account - you can deposit, keep, withdraw or transfer). this is DeMat of shares. DeMat accounts are maintained in banks, DPs etc. who will allot you an account number and keep the balance. when you buy shares, just give your number and the other person, on receiving money, will transfer them into your account directly.
Answered by L G, 04 Aug '08 10:36 am

 
  
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2.

A DMAT account is an account which is electronically maintained by the Banks or are provided by Broker agencies where you can keep money for transactions in Shares, Mutual Funds, purchase of Gold etc. It has to be tagged with your Savings account from where the money will be paid if you purchase a share etc and receive money when you sell a share etc.
Answered by Manas Mukhopadhyay, 04 Aug '08 10:01 am

 
  
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