DEMAT ACCOUNT

DEMAT-ACCOUNT | CAIIB NOV STUDY MATERIAL 2023 | 2023 SHORT NOTES | SHORT NOTES FOR CAIIB NOV 2023

The main focus of this article is Demat Account. Along with this, we’ll talk about the CAIIB study material for Nov 2023.

CAIIB NOV 2023 EXAM

CAIIB examinations are administered by IIBF. The major goal of the CAIIB exam is to give members of IIBF additional knowledge in areas such as risk management, Treasury management, credit management, international banking, balance sheet management, economic analysis, etc. which is important for improved decision-making.

Now that we know enough about the CAIIB NOV 2023 Exam, let’s expand our knowledge on one very important topic i.e., DEMAT ACCOUNT.

The ability to store shares and other securities in an electronic format is made possible through Demat accounts, also known as dematerialized accounts. Shares are purchased and maintained in a Demat Account during online trading, making it simple for consumers to transact. All of a person’s investments in bonds, mutual funds, exchange-traded funds, shares, and government securities are kept together in a Demat account.

Demat made it possible for the Indian stock exchange to go digital and improved SEBI oversight. Additionally, by storing stocks in electronic format, the Demat account decreased the chances of theft, destruction, and fraud. NSE first made it available in 1996.

Initially, investors had to go through a manual process to open an account, and it took a few days for it to be active. One can now open a Demat account online in only five minutes. The end-to-end digital method helped make Demat more well-known after it soared during the pandemic.

The process of dematerializing involves transferring physical share certificates into electronic form, which is simpler to maintain and available from anywhere around the globe. To engage in online trading, an investor must open a Demat account with a Depository Participant (DP). Dematerialization aims to make owning physical share certificates unnecessary for investors while promoting easy tracking and monitoring of holdings.

Demat has sped up the entire process and stored security certificates in digital format, which has helped alter the formerly time-consuming and laborious process of issuing share certificates. People can change paper certificates into digital ones once their Demat account is operational by submitting all of their physical securities and a Dematerialisation Request Form (DRF).

SECURITIES STORED IN DEMAT ACCOUNT

A Demat account may contain any of the following securities:

Shares.
Stocks.
E-gold.
Bonds.
public securities.
IPOs.
monies traded on an exchange.
Debentures that are not convertible.

ADVANTAGES OF DEMAT ACCOUNT

There are many advantages to having a Demat account thanks to recent technological advancements:

It is convenient and time-saving because traders can complete a transaction whenever it is suitable for them.
Transaction registration doesn’t involve any time-consuming paperwork.
Since the securities are stored in electronic form, there is no chance of theft, delays, or forgery with regard to physical copies of share certificates, bonds, etc.
Customers have a unified platform where they may store both debt and equity products.
Reduces the need for several communications: all parties involved in the transaction are informed of it by electronic alerts, negating the need to get in touch with the firm, trader, or investor.
Every company that the investor invests in through the Depository Participant has its addresses updated.
In contrast to the past, when shares could only be bought or sold in lots, one share can now be purchased or sold.
The cost of trading has significantly decreased as a result of the elimination of stamp duty expenses that were formerly related to physical records of securities.

DEMAT ACCOUNT TYPES

Depending on the investor’s place of residence, one of three types of Demat accounts can be opened in India:

Regular Demat account: All investors in India have access to this sort of Demat account. To open a standard Demat account, customers can speak with any DP of their choosing. Regular Demat accounts are different from the other varieties in that they don’t include extra features like foreign fund transfers.
Repatriable Demat account: NRIs who have a non-resident rupee account (NRE) are eligible to open a repatriable Demat account. Money can be transferred internationally using this account.
Non-repatriable Demat accounts: These can be opened by non-resident Indians who have a non-resident ordinary rupee (NRO) account.

OPENING OF DEMAT ACCOUNT

Let’s look at how to set up a Demat account manually.

Choose a Participant for the Depository.

After comparing the features and services provided by several DPs, customers may choose the one that best suits their requirements.

Complete the application.

An application form must be completed in order to open a new Demat account. People must also submit a number of KYC papers, including proof of identity, proof of address, a PAN card, bank information, and personal information.

Procedure for verification.

To ensure ethical and legal trading and to allay any concerns people may have about maintaining a Demat account and the various purposes it serves, they will be provided with a list of rules and regulations. The DP will verify the identity and the KYC documents in person. All fees related to opening a Demat account must be paid by the one who is opening the account. The cost is determined by the DP’s current policy. The cost varies amongst DPs.

Final endorsement.

The new Demat account will be opened after documents have been examined and all necessary procedures have been followed. The account’s unique identification number will also be provided to the one in whose name the account is opened.https://youtu.be/mJ_ecti9chk

STUDY MATERIAL FOR CAIIB NOV 2023

For many years, candidates preparing for the CAIIB Nov 2023 Exam have counted on Learning Sessions to give them the most current CAIIB study materials to aid in their preparation.

Candidates can rely on their goodwill and benefit from the CAIIB Video Lectures, which are made by expert teachers.
The most recent IIBF CAIIB Nov 2023 Exams suggested syllabus has been followed in making of the Video Lectures.
Candidates can access recorded lectures of the live classes on our app.
The video lectures are accessible via mobile applications and web browsers.
The CAIIB Nov 2023 Study Material package also contains Mock Tests to practice all that the candidates have learned.
The Mock Test contains Memory-based questions from the previous year’s exams.
The lectures also address CAIIB Case Studies.
Along with Video Lectures, candidates can access Epdf notes for all CAIIB subjects on our app.

Read Also: CAIIB LATEST STUDY MATERIAL 2023