Stock exchanges, markets players and analysts on Monday welcomed Finance Minister P Chidambaram’s proposal to introduce one demat account for all financial investments of an individual, saying the move will deepen financial markets and also make the process much simpler.
“Having a common demat account by creating one record for all financial assets of every individual is an excellent initiative by the Finance Minister. It will go a long way in creating an investment culture in the country,” BSE Managing Director and Chief Executive Ashishkumar Chauhan told PTI. Presenting the Interim Budget, Chidambaram said the government would create one record for all financial assets of every individual which will have one demat account as the basis for entire investments.
“We want to create one record where all financial assets are held in de-materialised form. One FSDC (Financial Stability and Development Council) approves the report (on the issue) then we will implement it. Regulators had agreed that financial records must be available in one record,” he said. leading tax expert and Chairman of city-based DHC (Desai, Haribhakti & Co) Consultants Shailesh Haribhakti said the proposal will lead to a far superior management of the financial affairs of an individual.