BANKING AFFAIRS

Detailed explanation-1: -Q. Which account is opened by the investor while registering with an investment broker? Notes: DEMAT or De-materialized Account refers to a deposit made at an Indian financial institution that can be used for investing in shares of stocks and other financial assets.

Detailed explanation-2: -A brokerage account is an account you open with your brokerage firm of choice, depositing money into the account, and subsequently being able to trade in securities, invest in bonds, mutual funds investment and buy and sell stocks.

Detailed explanation-3: -You can open a Demat Account by approaching a depository participant (DP) or a broker approved to open a Demat Account on your behalf as an investor.

Detailed explanation-4: -The difference between a demat and a trading account is that a demat account holds the shares and securities (bonds, ETFs, mutual fund units, etc.) in digital mode, while a trading account provides the interface to buy and sell shares in the stock market.

Detailed explanation-5: -Who is eligible for the demat account? Any individual who is a resident of India and 18 years old or above is eligible for opening a demat account, provided he/she has a PAN card. You need to provide your PAN card, proof of address and a copy of a cancelled cheque for registering the bank account.