Question
What do you understand by D’mat Account? Explain the benefits of it.
Solution
Meaning: It refers to that account which is opened by the investors with depository participant to facilitate trading in shares. Advantages:
(i) Exemption of stamp duty for dealing in shares in the electronic form
(ii) Elimination of problems associated with transfer of shares in physical form (such as loss in transit, theft, delays, mutilation, etc.
(iii) The concept of ‘odd lot’ stands abolished
(iv) Increased liquidity through speedy settlement
(v) Reduction in paper work
(vi) Attract foreign investors and promoting foreign investment.
