what is a demat account?

DeMat is abbreviation for dematerialisation and materialisation. It is an online and paperless form of holding your investments in equities, mutual funds, etc. You can open a demat account these days with almost any financial institution like citibank and sharekhan. It requires you to pay a certain as annual fees.

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Demat is a short word for "De-Materialisation" which is opposite for "Materialisation".

It means virtual. No material. Demat Account is a virtual storage of your shares or debentures that you buy from primary market or secondary markets.

When you buy stocks or shares from the Stock Market it is get credited in your Demat Account and when you sell it is debited from the Demat Account.

It was time when the shares were held physically in the forms of Share Certificate. Now its paperless. After the Demat has come, you do not have to hold Share Certificates. So your shares can not be lost or transferred to someone fraudulently.

Bhavesh Patel CFP

Certified Financial Planner

Demat account is opened in some banks or share trading companies, to do share trading. Through a demat account u can do share ONLINE Share Trading.

various banks and companies offer different rates and commissions and fees. If u have knowlegde of Share trading, u can open one demat account and do share buying and selling online instantly... Shares are transferred instantly. commission is charged..

Axis bank seems to be better for a Demat Account. Call them they will come to ur place n explain things well...

If u r in chennai, i can ask some one to contact u....

anikedh@yahoo.co.in

All de best

Demat is a account in which you can do trading in shares, mutual funds etc...can only be opened on your personal name i.e. savings account of a bank.