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Dematerialization of Shares in India with Demat Account

Dematerialization is the procedure wherein the physical share certificates are converted to a digital form. To hold investments in an electronic mode, you need to open a dematerialization account with a Depository Participant (DP). The primary objective of digitalization is to enable you to hold your investments in a digital form. It is more convenient and secure because there is no risk of damage or loss that is associated with the physical holdings. Features of a dematerialization account You may open a demat account with a DP either in a single name or as a joint account. However, this account can...
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Role of a Demat Account in Buying and Selling of Shares

Traditionally, investors used to hold physical certificates of shares. However, physical share certificates carried numerous risks such as loss, theft, and bad delivery, among others. With the advancement of technology, transactions are now done through a dematerialization account. About dematerialization account According to the guidelines of Securities and Exchange Board of India (SEBI), the regulator for the securities market in India, investors can no longer transact shares in the physical form at the BSE and NSE exchanges. This, therefore, indicates that a dematerialization account is mandatory for the purchase and sale of shares. A Dematerialization account, also known as a demat...
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How to Hold Your Shares in Digital Format

The stock market is considered as a lucrative investment option. To add to the convenience and ease of trading, investors can invest online and manage their portfolio. Earlier, investors had to manage physical certificates and the entire process of buying and selling of shares took place through stock market brokers. It is now possible to maintain the shares in an electronic format. The process of transferring the physical certificates into a digital or an electronic form is known as dematerialization. Investors are required to open a demat account with the bank and the account can be used for multiple security transactions....
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List of Documents Required to Open a Demat Account in India

“A Demat account is an account that allows investors to hold their shares in an electronic form.” It’s just like a bank account, wherein you hold all your money and cash transaction entries occur in a bank passbook. Similarly, in a Demat account, certificates of financial instruments like shares, government securities, bonds, mutual funds, etc. stay in electronic form and are debited or credited subsequently. This type of trading account can be opened with zero balance of shares. The procedure to open a Demat account is almost the same across different firms and institutions. Opening an online Demat account is extremely...
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