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What is Demat Account? what is the use of it?
 Question Submitted By :: Finance
I also faced this Question!!     Answer Posted By  
# 1
Demat means Dematerialisation of share, in simple it is an
accoutn with which a person can trade in security market
without which a person cannot buy or sell any share in
security market.
Is This Answer Correct ?    48 Yes 7 No
Sravan Chary
# 2
Demat a/c is an account which only creat for share trading.
It is basicaly use for share trading transaction from which
you can get security to your each transaction.
Is This Answer Correct ?    43 Yes 10 No
# 3
Demat refers to dematerialised account, it can be open with
any authorised Depository Participants. Demat turns security
into electronic form to make it tradable online. However, It
is not mandatory to have a demat a/c for buying and selling
of securities, SEBI allows invester to purchase upto 500
shares without having Demat account.
But having a Demat account is always good for investor
because it minimize the transaction time and provide safety
from loss and theft of shares.
Is This Answer Correct ?    25 Yes 3 No
Jitendra Kumar
# 4
Demat account is like an bank account, but in bank account
we keep, Fund for security and in Demat account we keep
shares for security.It is mandatory for Equity market.Even
though it is not mandatory for commodity market, but having
an Demat account for the investors is very good for their
securitys of shares.
Is This Answer Correct ?    16 Yes 1 No
# 5
demat is meant for dematerised account where the trading of
shares taken place in electronoicall manner which enables
the investors to over come the problem of loss of
shares,theft etc...........and it speed up the transaction
Is This Answer Correct ?    18 Yes 5 No
Ravi 9986288362
# 6
Demat account i.e demateralisations account is the
conversion of shares from physical form into electronic form.
it is used for share trading purposes which are kept in
electronic form
Is This Answer Correct ?    6 Yes 1 No
Priyanka Singh
# 7
It has a broader scope and is just not restricted to could include commodities, forex transactions, etc. 
Is This Answer Correct ?    6 Yes 3 No
Chintan L. Pasad

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