Explain the working of a demat account.

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Solution

The working of a Demat Account is stated in the points below:

(i) The depository participant (DP) either a bank broker or financial services company may be identified.

(ii) An account opening form is filled giving details of PAN card, photograph and power of atttorney.

(iii) The physical certificate is to be given to the DP along with a dematerialisation request form.

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Similar questions

Arrange the steps in the procedure for an investor who wants to buy securities on a stock exchange:

1. Selection of broker
2. Opening Demat account with a depository

3. Place the order with the broker

4. Settlement

5. Execution of order by the broker on the instruction of the investor

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