Question

What is meant by Demat Account?

• A. Dematerialisation of Securities
• B. Demand Depository Account
• C. Development Market Account
• D. Depository Participant Account

Answer 1

The correct option is A

Dematerialisation of Securities

In India, shares and securities are held electronically in a dematerialized (Demat) account, instead of the investor taking physical possession of certificates. A Demat account is opened by the investor while registering with an investment broker (or sub-broker).