What is Demat Account?
Most shares being available only in the electronic form, a Depository account is a precondition for trading in the secondary market. Kunvarji is a registered member (Depository Participant) of CDSL. You can avail of all the depository-related services by just opening an account with CDSL through Kunvarji.
In India, a demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007 The Benefits – A safe and convenient way to hold securities; – Immediate transfer of securities; – No stamp duty on transfer of securities; – Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; – Reduction in paperwork involved in transfer of securities; – Reduction in transaction cost; – No
