Question

Investors are expected to open ____ with Depository Participants and deposit their share certificates for the purpose of converting them to the electronic format.

• A. Remat Accounts
• B. Demat Accounts
• C. Deposit Accounts
• D. Current Accounts

Answer 1

Answer: (B)

Demat Accounts

Investors are expected to open demat account with Depository Participants and deposit their share certificates for the purpose of converting them to the electronic format. Demat account can be defined as an account to buy and sell of listed securities in electronic form, that is, through internet. It is opened by an investor through depository participant. It reduces paper work.