Question

Information about demat account

Answer 1

Motive of Demat systemEdit

India adopted the DEMAT ACCOUNT for electronic storing, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996, the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated.