What is DEMAT Account ?
- The Demat full form stands for a Dematerialised Account. Demat is a form of an online portfolio that holds a customer’s shares and other securities. It has negated the necessity of holding and trading physical share certificates.
- Demat trading was first introduced in India in 1996 for NSE transactions.
- As per SEBI regulations, all shares and debentures of listed companies have to be dematerialised in order to carry out transactions in any stock exchange from 31st March 2019.
Benefits of DEMAT Account
- Ease of Holding Securities : The Demat full form stands for a Dematerialised Account. Demat is a form of an online portfolio that holds a customer’s shares and other securities. It has negated the necessity of holding and trading physical share certificates.
- Paperless Transactions : facilitates paperless transactions. Investors can buy and sell securities without the need for physical paperwork, making the process faster, more convenient, and environmentally friendly.
