A Demat account is one that allows you to buy, sell as well as transact without the need of any paperwork. DeMat accounts are very safe, convenient and secure.It is a dematerialized account.Demat account is similar to a bank account where in the actual money is being replaced by shares.
In order to open a Demat account, one needs to approach the Depository Participants [DPs].
The Demat account is used to avoid holding of physical shares: the shares are bought as well as sold through a stock broker. In this the advantage is that one does not need any physical evidence for possessing these shares. All the things are taken care of by the DP.
Physically only 500 shares can be traded as per the provision given by SEBI. From April 2006, it has become mandatory for any person holding a Demat account to possess a Permanent Account Number (PAN).
In order to open a Demat account, one needs to approach the Depository Participants [DPs].
The Demat account is used to avoid holding of physical shares: the shares are bought as well as sold through a stock broker. In this the advantage is that one does not need any physical evidence for possessing these shares. All the things are taken care of by the DP.
Physically only 500 shares can be traded as per the provision given by SEBI. From April 2006, it has become mandatory for any person holding a Demat account to possess a Permanent Account Number (PAN).