demat account
Assignment A
Q1.Explain process involved in opening demat a/c of any bank
Ans.
In India, shares and securities are held electronically in a Dematerialized (or "Demat") account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker). The Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting shares.
Process for opening a DEMAT account in any bank.
Q2 What are features available on a demat a/c
Ans.
Different Types of Demat accounts.
1. Beneficiary Account: A beneficiary account is a Demat account in the name of an Individual (single or jointly). Such an account could also be in the name of a Corporate, a partnership firm, a society and a trust. It is similar to a bank account.
2. Pool Account: A Member pool account is a Demat account opened by Trading Members and / or Clearing Members. This account is opened to facilitate the pay-in and pay-out process.
3. Repatriable Demat Account: Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Repatriable Demat account.
4. Non-repatriable Demat Account: Non-repatriable funds (i.e. those which cannot be taken abroad) must be kept separate from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable Demat account. Money once
Q1.Explain process involved in opening demat a/c of any bank
Ans.
In India, shares and securities are held electronically in a Dematerialized (or "Demat") account, instead of the investor taking physical possession of certificates. A Dematerialized account is opened by the investor while registering with an investment broker (or sub-broker). The Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting shares.
Process for opening a DEMAT account in any bank.
Q2 What are features available on a demat a/c
Ans.
Different Types of Demat accounts.
1. Beneficiary Account: A beneficiary account is a Demat account in the name of an Individual (single or jointly). Such an account could also be in the name of a Corporate, a partnership firm, a society and a trust. It is similar to a bank account.
2. Pool Account: A Member pool account is a Demat account opened by Trading Members and / or Clearing Members. This account is opened to facilitate the pay-in and pay-out process.
3. Repatriable Demat Account: Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Repatriable Demat account.
4. Non-repatriable Demat Account: Non-repatriable funds (i.e. those which cannot be taken abroad) must be kept separate from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable Demat account. Money once