what is demat account?

Answer 1

Demat refers to a dematerialised account.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.

So it is just like a bank account where actual money is replaced by shares.

Answer 2

Demat account is a account where the record of shares is maintained. Like the bank account where your account shows how much money is there. In the demat account there is a account of shares ,how much shares and which company"s you have bought.Like bank account as you can withdraw money from the bank , in the demat account you can transfer the shares from to your broker or the broker can transfer your shares which you have purchase transfer in to your demat account. Account can be opened in the company who is providing depository services. It may be bank or other company.

Answer 3

Demat account simply means " an account to keep your shares in dematerialised form" rather than in physical form (printed share certificates). When you purchase shares, these will be credited into your demat account. And when you sell shares, these will be debited from your demat account. ( Equivalent example is of bank account where you keep your money and deposit or withdraw the money.)
In case you wish to trade/invest in shares, you have to open a demat account with one of the "depositories-NSDL or CDSL". You can open and operate the demat account from your broker or one of the many banks offering this facility.
Hope you have got the requisite information with this.

Answer 4

Demat refers to a dematerialised account.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.

So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your demat account.

Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.

All these will show in your demat account.

So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.

As you buy and sell the shares, they are adjusted in your account.

Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Answer 5

DEMAT refers to dematerialization which means the move from physical certificates to electronic book keeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording.

To convert the stocks in certificate form to demat we have a DRF(Demat Requisition Form) in all stock broking firms.

Answer 6

the accounts that r used to trade shares...
u plan to invest in IPO's, buy stocks, then first u gotta open a demat account..

Answer 7

demat is type of bank account.but that,s only for share.

Answer 8

ask this guy [e-mail]