A brief overview about DMAT/ depository services

Many folks who have the experience of investing in stocks are familiar with the DMAT accounts. But still there is large part of Indian population which is depended on dematerialized investments are unknown to the DMAT or depository accounts.

There are many people who want to open a DMAT account or a depository account but due to lack of information they become confused or they don’t find any way to get it done within right time. Hence here we are going to get some of the facts which are very helpful while opening the Depository or DMAT account.

When the DMAT account comes in our mind many of us start thinking about what exactly DMAT account is? The DMAT account is nothing but the Dematerialized account; it is same as like a bank account in which you can keep your bonds, stocks, shares and other financial assets.

Another question which makes us to think is what are depositories? n agency which keeps all types of securities and makes them easily available in electronic form is known as depository. There are two major agencies which provide the depository services in India, these agencies are NSDL i.e. National Securities Depository Limited and CDSL i.e. Central Depositaries Services Limited. These two agencies have many banks and several other financial institutions which keep all the vital steps to carry out the depository service smooth going. In other words the banks and the other several financial institutions act as the participant in the depository services in India.

Open a DEMAT account, it’s much simpler than you think! The world is changing every second in terms of economy and technology hence to open a DEMAT account; one does not need to think so much and face any hurdle.

In fact opening a DMAT account is pretty simpler, you can open a DMAT account in any scheduled bank or government undertaken bank. You can open the DMAT accounts with the assistance of stock brokers or any other financial institution.

The application form for opening a DEMAT account is much simpler; you have to just fill the form along with the photocopy of the PAN card issued by income tax department and residential proofs. And along with that you will need to submit two photographs and a cheque which is cancelled from your bank accounts. This process is done to link your DMAT account with the bank account.For submitting the identity proof you can represent any one of your documents such as passport, voting card, driving license etc. For submitting the address proof you can submit any one of the following documents such as your ration card, latest bank statements, latest telephone bills etc.

Hence opening a DMAT account is much simpler than it was previously the process of opening the DMAT account can become much simpler if you get the assistance of your stock broker. Opening a DMAT account is the intelligent way for investing in stocks or any other sectors, there are abundant advantages of DMAT account.