If you like to invest in the stock market, you’ll need a Demat account. Since its inception in 1996 by the Securities and Exchange Board of India (SEBI), the Demat account has radically changed the way investors trade. The days of tangible certificates and onerous paperwork are over! A Demat account allows you to retain your securities, such as stocks, bonds, and mutual funds, in a convenient digital format, making trading safer, faster, and more efficient.
Features of Demat Account Include
Quick and Easy Access
A Demat account allows you quick and easy trade access to your portfolio no matter where you are or what the time of the day it is. Single click and you can look at your statements and manage your portfolio performance in the backdrop of other relevant information.
Seamless Share Transfers
Demat account the activity of transferring shares can hardly be easier. Instead of worrying about messy forms you can sell or buy a share online by using a Delivery Instruction Slip (e-DIS). This makes transactions to be easy and convenient.
Open an account with Angel One– Click here
Freezing Option for Security
The other special aspect of having a Demat account is the freezing of that account. This enables you to make some or all of the securities, or even the whole account, inaccessible for a period of time. It is useful if you wish to extra restrictive on the money flowing in and out of the account.
Pledging Securities for Loans
Many investors are unaware that you can actually pledge the securities you hold in your demat account in order to secure a loan. Stocks and bonds can easily be used as security by a majority of brokers and banks to enable holders to access some cash without disposing their stakes.
Automatic Updates for Corporate Benefits
The Corporate Benefits such as Dividend, interest or bonus issues or Stock Splits are automatically credited to your Demat Account. You don’t have to chase after these updates they’re credited automatically.
Digital Speed and Convenience with SPEED E-Facility
NSDL’S fully operational known as SPEED E-Facility, transaction instructions can now be sent electronically without the physical slips. This feature furthers increases the rate at which trading is conducted.
Top Benefits of Opening a Demat Account
Following are the reduced risks:
Physical share certificates are easy to be stolen, damaged or even lost. These risks are eliminated through a Demat account as all the securities are held electronically meaning your investments are shielded from physical dangers.
Essay on Lower Costs:
A method of holding physical certificates involves charges such as stamp duty, handing fees, etc. Demat accounts do not attract these extra costs since there is no paper work, or manual intervention required.
Easier Portfolio Management
It can be quite tasking to keep track of investments on multiple securities. Managing several investment at once becomes easier when you have all of them in single Demat account since you are in a position to monitor all of them conveniently.
Eliminating Odd Lot Issues
Odd Lot Issues prior to the dematerialization of shares investors could only deal in shares in lots or in say bundles. Sometimes this led to the wonder of “odd lots” for shares. But in the demat account you do not have any such restriction to buy any quantity of shares you want to, which provides more versatility.
Fast Transactions
Efficient Transfers Since there are no paper certificates and documents, you can complete a purchase or sale in a few seconds as opposed to the normal time it takes to fill forms and complete necessary paperwork in order to execute your trading strategies.
Remote Access for Greater Convenience
For the ease of access you can trade on the move and make your Demat account available on your phone, laptop or tablet. No one wants to be tied to their investment, so with our tools, you can easily control your investments from the comfort of your home or during travel.
Open an account with Upstox– Click here
Conclusion
A Demat account is a vital tool for everyone who wants to invest in the stock market. It simplifies the trading process, increases investment security, and makes it easier to maintain a diverse portfolio. If you want to take charge of your financial future, you must have a Demat account.
If you found this post useful, please comment “useful”. And I request you to Please share this post on Facebook/WhatsApp with those who need this.