A study of Demat account securities and it’s processes: paradigm shift from traditional approach to Modern Dematerialization

Abstract

Shares and securities are maintained in electronic form through a Demat Account. Having a Demat Account is mandatory for conducting transactions in the stock market.Entry into the stock market occurs either through the primary market, where companies issue new securities to the public for the first time via an Initial Public Offering (IPO), or through the secondary market, where investors trade existing shares of listed companies. Once the account is set up, investors can purchase securities either through a broker or via online trading platforms. To open a Demat Account, one must contact a registered Depository Participant (DP). A list of authorized DPs is available on the official websites of National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). Interested individuals can either download the account opening form from the DP’s website or collect it from their office.