Banking Exam Question - What is DEMAT Account? Why DEMAT Account is Necessary & How to Open? Explain

Introduction - Share DEMAT Account 

• The account opens the account for the physical obligation to continue the recording of electronic records in the electronic system.
• This has provided the investors free from the compulsion to share their shares and other documents.
• After the prevalence of this account, the paperwork is less likely to be thrown, lost or disappointed.
• The transfer of the shares is faster and easy.
• After opening the Demat Account, institutional activity and IPO are also effective.
• In order to open the Demat Account, citizens and other forms of Farms should request full customer to open the account.

Need of Share DEMAT Account

• To change the physical asset to the electronic system,
• To get purchased business transactions of dues in Nepal Stock Exchange,
• To collect institutional activity of the asset received from Primary Share Removal (IPO) such as entitled Removal, Bonus Removal, Merger etc,
• In order to get the account of account accounts for the mortgage accounts received in the Demat Account,
• To bond bonds in the Demat Account,