Market regulator Sebi last week allowed investors to buy and sell mutual funds (MFs) on stock exchanges without a demat account. No demat means investors no longer have to bear costs associated with maintaining one.
Kisan Vikas Patra (KVP) was re-launched with much fanfare by the finance ministry, with initial reports suggesting the minister promised these would be bearer instruments that could be purchased in cash.
Banks such as State Bank of India, (SBI) ICICI Bank, HDFC Bank, Axis Bank and IDBI Bank have cut interest rates last week on retail term deposits. Similar cuts in deposit rates by other banks could be in the offing.
Many financial instruments today are available in demat or digital format. For instance, when it comes to shares and mutual funds there is no need for investors to hold their units in the physical or paper form.