Question

Write Short Notes on.
Demat account.

Answer 1

A d-mat account is an account that allows the investors to hold their shares and bonds in electronic form and also allows them to trade in these shares in the stock market. These types of accounts are offered by the commercial banks as a form of their agency function. Any shares purchased from the stock market are credited into this account and any shares sold in the stock market are debited from this account for a particular investor.