Download
1 / 5
50 likes | 75 Views
Managing your finances such as equity or debt can be a hassle, given the tasks you perform every day. Thankfully the Depository Act of 1996 has made it easier for everyone to manage their financial securities in a few clicks. Instead of receiving physical copies of shares or other securities, a demat account helps you to leverage the benefits of an online trading platform where you hold your financial security on a standardised electronic system.
E N D
what is demat account What is a demataccount Types of Demat Account
what is demat account what is demataccount? • A Demat account is a tool that enables a person to preserve the electronic form of the physical shares while also converting them. A Demat account is required when you need to trade or hold/store stocks, securities, or other capital market-related investments, just as we need a bank account for our online transactions and to store our money. The Demat account can be used to buy and sell shares both offline and online. The Demat account, which functions similarly to our bank account in holding all electronic certificates of financial instruments, is a requirement for trading in the stock exchanges.
Types of Demat Account • Regular Demat account: Residents of India who want to deal in shares alone and require a place to store their securities should open a regular Demat account. When you sell stocks while trading, your Demat account is debited, and when you buy them, it is credited. F&O contracts don't require storage, thus if you trade in them you don't need a Demat account. • Basic Services Demat Account: It is a brand-new Demat account that the SEBI has introduced. If the holding value is less than Rs 50,000, maintenance modifications are not made to these accounts. The modifications are Rs 100 for amounts between 50,000 and 2 lakh. The new account type is intended for new investors who have not yet opened a Demat account.
RepatriableDemat Account: Indian investors who are not residents of India open a repatriable account to send their profits from the Indian market abroad. You must cancel your regular Demat account in India if you want to open a repatriable account and open a non-resident external account to receive payments. • Non-repatriable account: This account is also for non-resident Indians, but it doesn't allow fund transfer to foreign locations.
