Demat Account


 
 
Concept Explanation
 

Demat Account

Securities (shares, Debenture, Bonds etc) are held electronically in a de materialized (or 'Demat') account instead of the investor taking physical possession of certificates. The move from physical certificates to electronic book keeping.

Advantage of Demat Account-

  • No risk due to loss on account of fire, theft or mutilation.
  • Bonus/Right shares/split allotted to the investor directly credit into his demat account.
  • Transaction Costs are low.
  • A single demat account can hold both Equity and Debt instruments.
  • No stamp duty on transfer of securities.
  • Physically only 500 shares can be traded as per the provision given by SEBI.
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