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.
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.
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
It has a broader scope and is just not restricted to shares.....it could include commodities, forex transactions, etc.
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Chintan L. Pasad
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