How does demat account work?

Answer 1

A DEMAT account stands for a De-materialized account. It is an account where shares that are owned by an investor are stored in electronic format. Earlier we used to hold shares in physical form but later we moved into electronic form. The DEMAT account is where those shares are stored. There are many DEMAT account providers. For example ICICI has a DEMAT service. www.icicidirect.com is the website of the DEMAT account provided by ICICI.

Answer 2

DEMAT account stands for Dematerialized account. It is an online account which is used to store stocks and mutual funds in electronic format.

It is mandatory for online trading (buying and selling) of shares and mutual funds.

Answer 3

A Demat account is an account to hold financial securities in electronic form. In India, Demat accounts are maintained by two depository organizations, National Securities Depository Limited and Central Depository Services Limited.

Open a Demat Account Online with Nirman Broking. Nirman Group entered into the broking sector in January 1987 as a small sub-broking unit led by Mr. Keshav Jain and has grown by leaps and bounds over the years to flourish as a full-grown broking house having membership of both the leading stock exchanges in India (NSE &BSE) as well as the commodity exchange (MCX).

Answer 4

A Demat Account is similar to a bank account that assists investors to hold their shares and all financial securities in an electronic form so that investors track all the investments an individual makes in shares, exchange-traded funds i.e. ETFs, bonds, and mutual funds in one place. By keeping their all financial securities digitally and handy, Investors can access their investment at anytime from anywhere.

Answer 5

Demat account is used for buying or selling or holding of stocks/shares.
It is same as a bank account where actual money is replaced by shares.