What are the Benefits of Demat Account?

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What are the Benefits of Demat Account?

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The biggest benefit of demat account is that it acts like a bank and holds not only shares in the account. In fact debt instruments like bonds, etc. can be held in a single account. Dematerialisation of share has been a silent revolution in India. Just as like money lies in a your bank and you have a passbook and internet access to view your transactions and balance, the concept of dematerialization is similar. – PowerPoint PPT presentation

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Title: What are the Benefits of Demat Account?


1
What are the Benefits of Demat Account?
2
Benefits of Demat Account
3
Benefits of Opening a Demat Account for Investors
  • The biggest benefit of demat account is that it
    acts like a bank and holds not only shares in the
    account. In fact debt instruments like bonds,
    etc. can be held in a single account.
    Dematerialisation of share has been a silent
    revolution in India. Just as like money lies in a
    your bank and you have a passbook and internet
    access to view your transactions and balance, the
    concept of dematerialization is similar. In Demat
    account you have instruction slip as well as
    online view and transaction password with help
    you can sell your stock or transfer your stock to
    another person DP account. It has made share
    trading and holding simpler and safer for all.
  • One can hold shares, ETFs, bonds, MFs in
    the demat account and the list is expanding every
    year. With help of Demat account you can view
    your wealth in single click. As well as all
    corporate action will take place online without
    any further action required form your
    side. Advantages of Demat account is so many but
    will try to cover few basic and
    important benefits of Demat account to
    investor point of view.
  • Read more How to Open Demat Account?

4
15 Advantages of Demat Account in India
  • No Risk of Physical Damaged of Certificate  as
    all documents in electronics form no risk of
    physical Damaged or Theft. In addition all
    corporate action directly credited into your
    linked bank account
  • Safer than paper-shares (earlier risks associated
    with physical certificates such as bad delivery,
    fake securities, delays, thefts etc. are mostly
    eliminated)
  • Immediate transfer of securities  earlier days
    we need to sign and send to physical share to
    registrar. Registrar matched sign and sends back
    new physical share to new buyer its take approx.
    10 15 days time. With help of Demat its can be
    transfer with in 24 hr to new buyer demat
    account.
  • Traders can work from anywhere  with Electronics
    transfer your presence at broker office not
    required as soon as you sell delivery of your
    stock your broker debited that stock from your
    demat account and transfer to Depository to
    credit buyer account and Exchange give money to
    your broker he will transfer fund into your Bank
    account. All process online done within 24-48 hr
    without physical presence required (e.g. even
    from home) not required to visit broker office.

5
  • Easy to maintain Physical Shares with Demat
    account process you can easily maintain physical
    shares as you can actually know value of your
    stocks in finger of your tip. As well as you can
    get latest update about your stocks company
    informations. Company corporate action also you
    will get update and received credit in your Demat
    linked bank account.
  • Change in Address in one place and get updated in
    every companys registrar records Before
    Electronic mode start share holder used to send
    every company registrar office if they changed
    their communication address. Which now its like
    one click process you just need to change address
    in one place every company registrar will get
    your new update by Depository.
  • Reduced transaction cost With Electronics
    transfer cost of transaction cost reduces
    drastically. As its online process only transfer
    charges application no additional cost involved.
  • Even one share can be sold no minimum lot
    required to share certificate In old days if you
    required selling stock then you have only in lot
    which physical share mention. After its
    converted into Demat form you can sell one single
    share also if you wish.

6
  • Reduced paperwork for transfer of securities
  • Easy and convenient way to hold securities
  • Transmission of securities is done by DP,
    eliminating the need for notifying companies.
  • Automatic credit into demat account for shares
    arising out of bonus/split, consolidation/merger,
    etc.
  • A single demat account can hold investments in
    both equity and debt instruments.
  • No stamp duty on transfer of securities
  • Elimination of risk by loss, theft, mutilation
    etc.

7
What is Demat Account? Top 10 Stock Brokers in India
How to Open Demat Account? Top 10 Discount Stock Brokers in India
How Demat Account Works? Compare Brokerage Companies in India
Documents Required to Open a Demat Account How to Open Demat Account in Zerodha?
Demat Account Charges in India Zerodha Review
8
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    Munciple Market Above kotak Bank C.G.Road
    Ahmedabad India Gujarat 380009

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