When you open a demat account, it opens the door to the enticing and dynamic world of the share market. Long gone are the days when entering the money market involved finding a trustworthy broker, making long phone calls, and standing in queues just to get your hands on physical stock certificates. Despite so much hard work, the risk of fraud or impersonation always hovered over investors.
Thankfully, digitization has transformed the way in which trade is made in the country. Today, there are around 148 million demat accounts in the country.
The main reason behind the popularity is that a demat account has the power to transform the way you have been investing. Read on as we discuss the features of a demat account.
We aim to demystify the complexities that may surround a demat account. Go on as we highlight the importance, advantages, and smooth investment experience a Demat account can provide.
Top 10 Demat Account Features You Should Know
- Transfer of shares
Whether it is buying or selling shares, you can do it quickly and smoothly with your Demat. You need to use a DIS (Delivery Instruction Slip) and go ahead with the transactions.
- Pledging of shares
The securities that you have in your open demat account can work as collateral. You can use them to get a loan from a bank or an NBFC.
- Suits investors of all kinds
SEBI makes it mandatory for investors to have a Demat account to trade and invest in the stock market. For investors, both beginner and seasoned, a demat account fits all their needs. A demat account can also be opened for minors, joint account holders and private as public trusts as well.
- Safe and secure
Physical shares came with the risk of being stolen, lost or damaged. A Demat account is for online trading. There is no such fear. Your shares are safe, and forgery or theft is not possible. Online platforms like Bajaj Broking ensure safe and secure transactions, preventing any malicious exchanges.
- Convenient storage
A demat account becomes the one-stop–shop for all your securities. Apart from shares, you can hold multiple instruments in a single account, making transactions as well as monitoring easier.
- Easy access
When you open a demat account you give yourself the freedom and flexibility of buying and selling your securities through various modes. You also have the advantage of accessing your demat account on your phone, computer, laptop, tablet etc. No matter where you are, in whichever part of the world, all you need is an internet connection.
- Addition of a nominee
Having a nominee in your demat account allows seamless transfer in case of an unfortunate event. Keep in mind that the SEBI mandates the addition of a nominee.
- Reduced costs
Keeping physical shares came with a set of overhead expenses such as handling fees, stamp duty, etc. A Demat account comes with transparent pricing and no hidden charges.
- Saves time and effort
When you open a demat account online, you save yourself so much trouble. Being a digital process, you can carry out a transaction from anywhere in the world, that too in a few clicks. With a demat, you can greatly reduce the paperwork. You can buy, sell, and hold instantly, saving time.
- Adds to your knowledge
Your Demat account goes beyond buying and selling securities. Along with daily stock recommendations, you get tools like Marketsmith, Scanners, and Trendlyne to help you with your analysis. You can also create alerts and watchlists at your convenience. You can make well-informed decisions about your financial portfolio.
Over To You
The ease and convenience of online trading accounts have attracted many to the share market. Once considered mysterious and daunting, the share market has transformed itself into a realm accessible to many.
No longer confined to traditional brokerage houses, investors both new and veterans, are comfortably making an entry. If you are planning to open Demat account, your timing couldn’t be perfect!
