Question

Informative report of demat account

Answer 1

A dematerialized or demat account is used to keep an electronic record of the investor’s shares and securities in the country. This account can be opened by seeking the assistance of an investment broker for registration. The demat account number must be mentioned for making any transaction pertaining to electronic trade settlements. A demat account can be accessed using two passwords – a transaction password and an Internet password.

This account eliminates usual problems connected to physical share certificates. Also, bonus shares get credited to the account directly. Investors need not be apprehensive of calamities like mutilation, fire or theft.