Retain your Holdings Electronically in a Demat Account

Demat accounts came into being in India some decades before ahead of which securities, as well as shares,were held in physical form. Now you as an investor are able to retain such securities in electronic form by means ofdemat account. It renders the whole process of investing, monitoring, holding, easily and also trade rapid, easy and very inexpensive. Not only that, the SEBI which is the stock market regulator of India also has made the Demat account mandatory one for every trader as well as an investor. Hence before you start investing or trading in the stock market, you must get a demat account opened from any valid stockbroker or even a stock broking house. The process of opening a demat account is simple,and one can get the same opened in a few days after submitting the application to the concerned broker in the market.
Characteristic of a demat account
Here are a few characteristics of this account.
Share transfer easy
Investors are able to transfer the assets by way of the RIS—receipt instruction slip and DIS—delivery instruction slip meant for selling and purchasing shares. These slips permit investors to impart all information that is necessary for carrying out trade easily.
Quick dematerialization and re-materialization of securities
Operators of demat account are able to give directions to the DP – depository participants to change certificates held in physical form to electronic format. On the other hand, it is possible to change electronic securities to physical form if the need arises.

Pledged to get a loan

A number of lenders offer loan in lieu of the securities which are retained within a demat account of the account holder. These assets are utilized in the shape of collateral to get loans by the borrowers.

Demat accounts can be free zed

Holders of free demat account are able to freeze the accounts for some span of time if it is necessary. This option is able to be advantageous if the investor desires to stop unwanted credit as well as debit into his demat account. This option of freezing may be also availed by particular volume of securities retained within any account.

Numerous accessing choices

As is evident the demat accounts are run by electronic means by which is meant that these are accessible employing manifold modes. These accounts are able to be accessed by way of the internet utilizing any smartphone, computer or some other similar devices.

Speed - e - facility

NSDL- the national securities depository limited permits the investors to convey instruction slips in electronic form in place of making physical submission of the slip towards the DP. It renders the entire process simple and also less time taking.

Corporate advantages and actions

In case any company provides refunds, dividends, or interests to the investors, all such rewards get electronically available to the holders of the demat account. Besides, several corporate actions such as right shares, bonus issues, or stock split get electronically updated within this kind of the account held by the shareholders.

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About Jitender Sharma

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