A Brief Overview About DEMAT and Depository Services
A Brief Overview About DEMAT and Depository Services
Many folks who have the experience of investing in stocks are familiar with the DEMAT accounts. But still there is large part of Indian population which is depended on dematerialized investments are unknown to the DEMAT or depository accounts.
There are many people who want to open a account or a depository account but due to lack of information they become confused or they don't find any way to get it done within right time. Hence here we are going to get some of the facts which are very helpful while opening the Depository or DEMAT account.
When the DEMAT comes in our mind many of us start thinking about what exactly DEMAT account is? The DEMAT account is nothing but the Dematerialized account; it is same as like a bank account in which you can keep your bonds, stocks, shares and other financial assets.
Another question which makes us to think is what are depositories?
An agency which keeps all types of securities and makes them easily available in electronic form is known as depository. There are two major agencies which provide the depository services in India, these agencies are NSDL i.e. National Securities Depository Limited and CDSL i.e. Central Depositaries Services Limited. These two min agencies have many banks and several other financial institutions which keep all the vital steps to carry out the depository service smooth going. In other words the banks and the other several financial institutions act as the participant in the depository services in India.