BANKING AFFAIRS

Detailed explanation-1: -Demat Account is short for dematerialisation account and makes the process of holding investments like shares, bonds, government securities, Mutual Funds, Insurance and ETFs easier, doing away the hassles of physical handling and maintenance of paper shares and related documents.

Detailed explanation-2: -Demat Account is an account that is used to hold shares and securities in electronic format. The full form of Demat account is a dematerialised account.

Detailed explanation-3: -A demat account is different from a trading account. A demat account holds stocks, bonds, mutual funds, and exchange traded funds (ETFs), and other securities. It has securities that were converted from physical to electronic form or recently bought from an exchange.

Detailed explanation-4: -Dematerialisation is the process by which a client can get physical certificates converted into electronic balances. An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP.

Detailed explanation-5: -What is demat account? A Demat account is used to store financial securities in the Dematerialised form. It is used to securely hold and trade shares in the Demat form. There are two main depositories in India that provide Demat account services-CDSL and NSDL.