Explain the concept of DEMAT of securities.
Ans. DEMAT is an internet based trading system of securities. It came in India in April, 2000. It is opposite of MAT i.e. materialistic/physical form. When securities are held not in physical form but in the form an electronic account, they are called DEMAT of securities. . For some selected scrips, DEMAT has been made compulsory. Securities issued through IPOs can be traded only in DEMAT form. It is so because it takes a lot of paper record, time effort and manpower to maintain records in physical form and doing transfers and transmission.
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