What is demat account?

Full form of DEMAT is DEMATERIALTSED And Hindi meaning of DEMATERIALTSED -
not being in physical form,


what is DEMAT ACCOUNT ?
DEMAT ACCOUNT is used in stock market relationship such as Account and LOCKER, where the purchased share are credited,
DEMAT ACCOUNT is used to hold shares only after purchasing the shares, and when we sell the shares, those shares move from our DEMATE ACCOUNT to the buyers DEMAT ACCOUNT.

 "DEMAT ACCOUNT  is like a warehouse of a business, where the purchased product i.e., the shares are kept, and when sold, the goods from that warehouse are taken out and given to the buyer "

History of the DEMAT ACCOUNT in India
The National stock Exchange in India started depositing shares in DEMAT ACCOUNT from the year 1996, before that when the internet and computers were not used to buy and give shares in the form of share certificates, which would take a lot of time, was risky job as well as keeping the shares certificate was a risky task,
than as soon as the computer started being used in the share market, all kinds of share were dematerialized.
i.e., The share were transformed to DIGITAL FORM, which we can no longer physically take, nor de we the share purchased needed to be maintained further,
And when that shares holders sells the shares, than those shares from DEMAT ACCOUNT are automatically released and deposited in the buying account.

" A share is a certificate, but in today's time it is not a physical look, but is in COMPUTERISED form you can buy and sell shares only in DEMAT form"

If someone holds an old shares certificate,

i.e., If a share is steel in physical form, it is mandatory to convert it into DIGITAL (electronic form) i.e., before buying or selling shares,

Benefits of DEMAT ACCOUNT keeping shares in DEMAT ACCOUNT is very beneficial, some of the most benefits of the DEMAT are 
  • A very easy and convenient way to hold the stock.
  • Security like bringing complete bank of shares.
  • TRANSFER, easy and safe reliable and convenient when selling shares.
  • Zero paper work no need for transfer deed paper work.
  • TRANSACTION cost and STMAP DUTY fees go down drastically.
  • AUTOMATICALLY CREDIT AND DEBIT OF SHARES.

you can buy or sell shares anywhere in the world   
  • losses for DEMATE ACCOUNT
If DEMATE ACCOUNT has so many benefits, as well as its minor disaduantages  and NEGATIVE side.
  • You can never know to whom you have sold shares.
  • You can never know from whom you have bought share.
  • There is a need for very strict SUPERVISION on the work of stock broker.
   So, that they can't take advantage of this system incorrectly

DEMAT ACCOUNT STATEMENT (description)
A question of  whether the DEMATE ACCOUNT statement can be obtained fro the total share ever since the DEMAT ACCOUNT was opened?