The term Dematrefers to a dematerialized account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI).Kotak Securities, an award winning ("Best Broker in India" by Finance Asia) brokerage firm in India offer online trading services & <a href="www.kotaksecurities.com/whatweoffer/demataccount.html" Title=“Open Demat Account with Kotak Securities">Demat account</a> a secure and convenient way to track your securities and investments. We also provide you with <a href="http://www.kotaksecurities.com/stock-market-news/equity/1000/equity-market/NSE/ALL/ALL" Title="Share Market Update By Kotak Securities">live share market</a> update & insights.
• Indian capital markets have seen an unprecedented boom in its activity in the last
15 years in terms of number of stock exchanges, listed companies, trade
volumes, market intermediaries, investor population, etc.
• However, this surge in activity has brought with it numerous problems that
threaten the very survival of the capital markets in the long run, most of which are
due to the large volume of paper work involved and paper based trading.
Since the paper work was not matching the rapid growth, there was a need for a
better system to ensure removal of these impediments.
At this time DEMAT account was introduced to counter all these problems.
What is a DEMAT account?
• DEMAT refers to a dematerialized account. Just as you have to open an account
with a bank if you want to save your money and make cheque payments etc in the
same way you need to open a DEMAT account if you want to buy or sell stocks.
• It is similar to a bank account where actual money is replaced by shares. DEMAT
account can be opened with any depository.
• A depository is similar to a bank. It holds shares, which belong to investors, in
electronic form. The investor has to open an account with the depository, through
a Depository Participant.
• The DP is an intermediary between the depository and the investor.
• In India, there are two depositories, viz., National Securities Depository and Central
Depository Services. Most banks are DP participants, as are many brokers. A broker
is separate from a DP.
• A broker is a member of the stock exchange, who buys and sells shares on his
behalf and on behalf of his clients.
• A DP will just give you an account to hold those shares.
Benefits of DEMAT
• DEMAT is a safe and convenient way to hold securities as it allows Immediate
transfer of securities. There is no stamp duty on transfer of securities.
• Elimination of risks associated with physical certificates such as bad delivery, fake
securities, delays, thefts etc.
• There is a major reduction in paperwork involved in transfer of securities.
• Change in address recorded with DP gets registered with all companies in which
investor holds securities electronically eliminating the need to correspond with each
of them separately.
• Automatic credit into DEMAT
• Holding investments in equity and debt instruments in a single account.
Benefits of DEMAT
• Benefit to the Company: The depository system helps in reducing the cost of new
issues due to less printing and distribution cost. It increases the efficiency of the
registrars and transfer agents and the Secretarial Department of the company. It
provides better facilities for communication and timely services with
shareholders, investor etc.
• Benefits to Brokers: The depository system reduces risk of delayed settlement. It
ensures greater profit due to increase in volume of trading. It eliminates chances of
forgery. It increases overall of trading and profitability and also increases confidence
Is a DEMAT account necessary?
• Nowadays, practically all trades have to be settled in dematerialized form.
• Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical
form, nobody wants physical shares any more.
• Therefore a DEMAT account is crucial for trading and investing.
Kotak Securities Limited, Registered Address: 27 BKC, C 27, G Block, Bandra Kurla
Complex, Bandra (E) Mumbai 400 051. Correspondence Address: 6th Floor, Kotak
Infinity, Building No. 21, Infinity Park, Off Western Express Highway, General AK Vaidya
Marg, Malad (East), Mumbai 400097. Tel no: 66056825. SEBI Registration Numbers:
NSE INB/INF/INE 230808130, BSE INB 010808153 / INF 011133230, OTC INB
200808136, MCX-SX INE 260808130/ INB 260808135/INF 260808135 , NSDL IN-DPNSDL-23-97, CDSL IN-DP-CDSL-158-2001, AMFI ARN 0164. Compliance Officer - Mr.
Sandeep Chordia. Tel. No: 022 6605 6825. Email id: email@example.com.
In case you require any clarification or have any concern, kindly write to us at below
• For Trading Account related queries: firstname.lastname@example.org
• For Demat Account related queries: email@example.com.
Alternatively, you may feel free to contact our customer service desk at our toll
free numbers 18002099191 or 1800222299. You may also call at 30305757 by
using your city STD code as a prefix.
In case you wish to escalate your concern / query, please write to us at
firstname.lastname@example.org and if you feel you are still unheard, write to our
customer service HOD at email@example.com.