What Is a DMAT Account?

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A DMAT account, or dematerialized account, is a type of banking account which dematerializes the paper-based, physical shares of a stock. Avoid holding physical shares of a stock through a DMAT account with help from a registered financial consultant in this free video on investments and personal finance.

Part of the Video Series: Beginner Investing
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Video Transcript

This is financial adviser Patrick Munro talking about, what is a DMAT account. It's a short term for dematerialized account, and it's a type of banking account which dematerializes the paper based physical shares. The idea of a DMAT account is to avoid the need to hold physical shares of a stock. The shares are virtually being bought and sold through the banking account system, key word, virtually. This account is popular in India, and also mandates the DMAT account for shares trading, only above 500 shares. All shares, debentures, bonds are traded in DMAT format only. And an individual only has to give an account number with a depository participant. It deals with these paperless shares, that's basically what they are, these paperless shares. The world of economy and financial world right now is global in nature. And there won't be a time short that comes that we won't be using DMAT shares here in the United States in our share trading platform as well. This is Patrick Munro talking about what is a DMAT account.

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