DMAT account means dematerialized account. To save the money and to operate the cheque transactions the general bank account is sufficient. Like that for purchase of shares and sale of shares the DMAT account is compulsory. In general bank account the cash is occupied the main place, in the DMAT account the share will occupied the main place.

To open DMAT account D.P (depository participant – like bank branch) to be contacted. The companies must issue physical, DMAT shape securities. The investors can select any one. In physical securities duplicate, forgery cases can be found. The theft problem is always behind us. So DMAT procedure is safe in all times.

Let us say, you are having 150 infosys, 50 wipro shares. With the help of electronic system all the shares will be credited to the DMAT account. So there is no need to show the share certificates. With reference to your business transactions the available shares in the DMAT will be changed. The D.P will send the statements for these business transactions.

Is the DMAT account compulsory?
At present the DMAT account is made compulsory, the trading transactions are conducted on the procedure of dematerialized. Really above 500 shares, the transactions will be conducted on physical procedure. The C.B is permitting to conduct transactions on the physical procedure but the permission has treated as time bared.

So for the trading & investment, the DMAT account is compulsory. Several banks are functioning as D.P. participants. So the choice of D.P. can be selected by the individual. If the websites of NNDAL, CDSL searched, we can find the list of D.Ps.

The D.P and Broker are different. The broker is stock market member. He can do business on behalf of his clients in the sale and purchase of shares. But the D.P. will arrange the required account for arrange of shares. The ICICI, and H.D.F.C. banks have arranged independently separate wing for managing the D.Ps. These special wings will provide facility of one line trading to their clients. And they organize some DMAT accounts. We can check DMAT account to know about our shares sales and purchases transactions and the balances.

One Response to “How to open DMAT account?”

1. Omprakash Singh says:

   01/11/2009 at 5:48 am

   I want to know about facility of D-MAT A/c