The abbreviation for Demat acocunt is dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The demat account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. To open a Demat Account Permanent Account Number (PAN) is must. Lot of Indian banks also providing the demat services. When you buy shares from a agent or broker, the shares are credited in your demat account. The amount required will be debited from your bank account. If you are selling the shares then the amount will credited to your Demat account.

Procedure

i).Fill demat request form (DRF)

ii).After dematerialisation, your depository account with your DP, would be credited with the dematerialised securities

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