Demat Account

In India, shares and securities are held electronically in a dematerialized (or “Demat”)account, instead of the investor taking physical possession of certificates.

  • A Dematerialized account is opened by the investor while registering with an investment broker.
  • A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions.
  • A Depository Participant (DP) is an intermediary between the investor and the depository.
  • The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc.
  • It ensures transfer settlements and reduces delay in registration of shares.
  • It ensures faster communication to investors.
  • It helps avoid bad delivery problems due to signature differences, etc.
  • It ensures faster payment on sale of shares.
  • No stamp duty is paid on transfer of shares.
  • It provides more acceptability and liquidity of securities.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Free
Module E PPB ePDFs available in our android app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app

Accounting and Finance for Banking Module A Pdf

Free
Accounting and finance for bankers all ePDFs are available in our an app. Get them all at https://iibf.info/app
Learning Sessionshttps://iibf.info
Btech, JAIIB CAIIB and a tutor. Have taken more than 900+ hours online classes with more than 1,25,000 students

Popular

Free Live Classes

spot_img

More from author

JAIIB Mega Mock Test for Free | Principles and Practices of Banking

ppb mock test:- Jaiib Exam 2020 dates will be announced soon for May 2020 by iibf. It is high time for preparing for all...

JAIIB Study Material Principles and Practices of Banking Live Class Previous Year Questions

https://www.youtube.com/watch?v=BG2s7lPiX9A Jaiib Study Material PDF Notes Papers Mock Tests - In this post you can get JAIIB Study Material PDF files as shared by other...

Principles and Practices of Banking – PPB Most important Questions

Hello friends, today in this article by the learning sessions we will share important questions and memory called topics of PPB that is principles...

JAIIB Exam 2022 Syllabus, Dates, Pattern and Fee all Details

JAIIB EXAM Dates 2022 Junior Associate of the Indian Institute of Bankers Exam or JAIIB, as commonly called, is conducted as a career progression exam...