A demat account allows investors to hold securities like stocks in electronic form instead of physical certificates. It involves converting physical certificates into an electronic format to make transactions faster and safer. Key benefits include immediate transfer of securities, reduced paperwork, and elimination of risks like loss or theft of physical certificates. Major depositories that provide demat services in India are National Securities Depository Limited and Central Depository Services Limited. Maintaining a demat account is necessary for buying and selling shares through stock exchanges according to SEBI guidelines.

1. DEMAT
ACCOUNT
Presented By: Pratidhee Palak Jha

2. What is a Demat Account?
 DEMAT refers to Dematerialized account.
 Conversion of physical securities into electronic form.
 No distinctive number to securities required as ,depositing
& withdrawing money from a bank without bothering about
distinctive no. of currency.

3. Features of a Demat account
 DEMAT is a safe and convenient way to hold securities as
it allows immediate transfer of securities.
 No need of stamp duty on transfer of securities.
 Purchase, hold and sell of shares in electronic form.
 Major reduction in paperwork.
 Elimination the risks such as Bad delivery, loss of
certificates, delay & theft.

4. Dematerialisation
 Introduced in India through the enactment of the Depositories
Act, 1996.
 It is not mandatory.
 One may keep its holding partly in physical form and partly in
Demat form
 A select list of securities announced by SEBI can be delivered
only in Demat form in the stock exchanges connected to NSDL.

6. DEMAT-participants
 Participants:
1. Investors
2. The Depository
3. NSDL [national securities depository ltd.]
4. CDSIL[central depository of securities India ltd.]
5. The Depository Participants
6. The Issuing Company

7. National Securities Depository Ltd
(NSDL)
 NSDL was established on 8 November 1996 as the
first electronic securities depository in India.
 It has established a national infrastructure using
international standards that handles most of the
securities held and settled in dematerialized form
in the Indian capital market
 NSDL is promoted by Industrial Development Bank
Of India (IDBI) and National Stock Exchange Of
India Ltd (NSE) & Specified Undertaking Of The
Unit Trust Of India (SUUTI).

8. Central Depository Security India Ltd
(CDSL)
 CDSL was founded on February 1998.
 Central Depository Services Limited (CDSL), is the
second Indian central securities depository based in
Mumbai.
 Its main function is the holding securities either in
certificated or uncertificated dematerialized form, to
enable book entry transfer of securities.
 CDSL is promoted by Bombay Stock Exchange
Limited(BSE), jointly with State Bank Of India, Bank Of
India, Bank Of Baroda, HDFC Bank, Standard Chartered
Bank, Axis Bank and Union Bank Of India.

9. CONCLUSION
 Is Demat Account Necessary ?
 As per the Securities & Exchange Board of India (SEBI)
guidelines all trades have to be settled in
dematerialized form only.
 Although SEBI has allowed trades of up to 500 shares to
be settled in physical form.
 If you want to buy and sell shares through the stock
exchange, in a easy & simple way they you must have a
Demat account.