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Defination of demat a/c?

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Defination of demat a/c?

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  1. Dematerialisation of tradeble instruments like shares, debentures etc.

    It is in electronic form rather than physical form as was available earlier

    Most convenient to trade

    No procedure regarding transfer of shares by affixing transfer stamps and sending to Registrars and waiting for the return of share certificates in time

    In electronic mode sale and purchase take place instantaneously


  2. Conversion of shares from physical to de-materialisation.  No physical.  Only electronics.

  3. demat means dematerialisation of shares being traded on the stock market from physical form into eletronic form to enable transactions of sale and purchase .

    demat is mandatory for sale of shares in the stock market.

  4. trading in market with the account online so that u can transfer the profit into the account directly and withdraw when ever u want....

  5. Demat account : dematerialised share holding account. shares held in electronic format is called dematerialised, since u dont hold the shares in physical format.

  6. Demat means dematerialisation of physical form and holding in electronic form.

    For example you have cash in physical form which can be deposited in to your bank account and the same is represented as an entry in your pass book. This is as good as your holding cash.

    Similarly we were holding shares and other securities in physical form earlier. For every transaction these certificates have to be physically delivered. This involves lot of labour and paper work. These securities will be reduced to an entry into the demat account and transactions become easy.

    For trading in shares this account was made compulsory.

    Now LIC is planning to convert all its policies into demat form.

    Even postal authorities are planning to convert their NSC, Kissan Vikas p[atra certificates into electronic form.

    This is all to bring in paperless transactions to make the system more effective and efficient.

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