What are the advantages of opening a Demat account?by Jaiswal Suhas Curator
The Demat accounts provide you with easy accessibility to your investment assets. This is the first – and perhaps the biggest – benefit that you get from these. These days, it has become a lot easier to access these accounts through smart devices such as smartphones, laptops, and tablets, to name a few. This lets you monitor your investments properly as well.
You can dematerialize and rematerialize your securities easily
When you have these accounts, it becomes easier for you to rematerialize and dematerialize them. The term dematerialization means converting your securities to an electronic format from the physical form. If you want you can always change them back to the physical format. This process is known as rematerialization. All you have to do in this case is to provide the necessary instructions to your DP (depository participant) from which you have bought the Demat account.
They are safe
Opening Demat accounts can make your investment process a lot safer than it may otherwise have been. If you keep your share certificates in a physical format there is always a high chance that they would be stolen or damaged. You may also lose them. However, with the Demat accounts, there is no such risk at all.
They make it easier for you to open your trading account
Your online trading account is one through which you buy the shares and stocks or sell them. If you want to start such a trading account you must provide the numbers of your Demat accounts.
It makes it easier for you to perform your transactions
When you have Demat accounts there is no need for you to physically visit the office of a company to sell or buy the shares. With such an account all you have to do is click the mouse a few times and your transactions would be completed.
No matter what you do – buy or sell shares – all you have to do is place an order for the same. The changes would be reflected in your Demat accounts in a couple of days at the most.
It helps you save on stamp duty
As per the regulations of SEBI (Securities and Exchange Board of India), you do not have to pay any stamp duty for buying or selling shares in electronic format. Additionally, it helps you liquidate your shares easily. If you have Demat accounts you would get the money you make by selling your shares quickly.
Created on Jan 22nd 2021 00:00. Viewed 173 times.