DEMAT SERVICES

Submitted by,

John Mohan
Demat:
Demat stands for dematerialisation. It is a
process of storing securities in a digital format.
SEBI has made the Demat account mandatory
for stock investors.
What is a Demat account?
A critical tool for maximizing your wealth and safekeeping. Demat
accounts make share trading quick and easy. It eliminates the risks
and challenges associated with physical share certificates. In India, if
you wish to invest in the stock market, it is mandatory to open
Demat account.
Importance of Demat account:
With a Demat account, you can hold a wide variety of investments such as bonds, equity shares,
government securities, mutual funds and exchange-traded funds (ETFs). Similar to a bank
account, a Demat account is either credited or debited each time you buy or sell shares of a
company.
It not only eliminates unnecessary paperwork but also helps streamline the process of share
trading. All of the Demat accounts in India are maintained by two depositories, namely National
Securities Depository Limited (NSDL) and Central Depository Services LimIted (CDCL).
Documents required for Demat
account opening:
◦ Proof of identity with photo
◦ Proof of residence
◦ Proof of bank account
◦ Proof of income
 Types of Demat accounts
1.Regular Demat accounts: A regular demat account is needed for
investors who reside within India. The account is ideal for those who
deal with equity shares alone.
2.Repatriable Demat accounts: This type of demat account is meant
for non-resident Indians (NRIs). It allows the transfer of wealth
abroad
3.Non-repatriable Demat accounts: This type of demat account is
again for the NRIs. However, you cannot transfer funds abroad. You
must also have an NRO bank account linked to the demat account.
Features:
Benefits of Demat account:
Swift settlements and deliveries
Increased share trading volume and market participation.
Increased transparency
Eliminates paperwork
Quick and easy communication with investors
Little or no risk are involved
Builds trust and increases investor confidence
THANK YOU!