Features of Demat Account That You Should Know Aboutby Jaiswal Suhas Curator
The demat accounts provide you – the account holders – easy access to your shares and other such securities. They can also make it quite quick. You can also get access to your account statements by using net banking facilities. You can get such information at any time and place of your choosing provided you have a device that helps you access the internet such as a smart-phone or a computer.
You can Dematerialize and Rematerialize Securities Easily
Let us assume that you hold your investment assets in the physical form. In that case, all that you need to do is ask your DP (depository participant) to change it to an electronic form.
In much the same way, you can also use your demat account to rematerialize it or change it to a physical form at any time that you wish to.
It becomes easier to receive the various benefits of your shares such as dividends
The demat accounts have now made this process a lot less time consuming than what they were earlier. They have made the process a lot easier too. Apart from dividends, you can get your refunds and interests rather quickly as well. The main reason for this is the fact is that all these are automatically credited to your account.
These accounts also offer an extremely convenient option for you to update the likes of stock splits, rights, bonus issues, and public issues, to name a few. This is possible because of the ECS (electronic clearing service) facility provided in these accounts.
It becomes easier to transfer the shares
These accounts also facilitate the processes of buying shares and selling them. Previously, such transactions used to take around a month. However, now the process has become a lot simpler and this means that the expenses have come down as well.
For example, no longer do you have to pay stamp duty on such transactions. This happens mainly because the entire process is happening electronically.
It is easier to liquidate the shares
Thanks to the demat accounts it is now a lot easier to liquidate your shares as and when you need to. The process has become a lot simpler and it takes a lot less time too.
It is easier to get loans against your securities
Since you hold such an account you can get a loan against the securities that are there in such an account. You can also freeze parts of these accounts quite easily.
Created on Dec 24th 2020 00:54. Viewed 131 times.