Aims and Objectives of Demat Account
5paisa Research Team
Last Updated: 30 Dec, 2024 02:17 PM IST

Content
- Introduction
- What is a Demat Account?
- Types of Demat Account
- Documents Required for Demat Account
- Aims and Objectives of Demat Account
- Dematerialization Concept
- Re-materialization Concept
- Conclusion
Introduction
The days of physical shares are long gone. Shares of companies are now available in electronic formats. A Demat account is an electronic account that digitally holds different types of securities. Thus, opening a Demat account is the first step in trading on the stock market. This article discusses several aims and objectives of Demat accounts.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.
Frequently Asked Questions
Opening a Demat account online is generally safe, specifically via a broker's official website. The Securities and Exchange Board of India monitors these brokers or depository participants.
There are three types of Demat Accounts:
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Repatriable Demat Account
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Regular Demat Account
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Non-repatriable Demat Account
The most famous stock broker in India is 5paisa.
It is possible to open more than one Demat account with different brokers. Multiple Demat accounts with the same broker are not allowed.