Demat and Trading Account
Broking & Demat Services
Managing your finances such as equity or debt can be a hassle, given the tasks you perform every day. Thankfully the Depository Act of 1996 has made it easier for everyone to manage their financial securities in a few clicks. Instead of receiving physical copies of shares or other securities, a demat account helps you to leverage the benefits of an online trading platform where you hold your financial security on a standardised electronic system.
A Demat Account Can Hold The Following Range Of Securities:
- Shares
- Stocks
- E-gold
- Bonds
- Government securities
- IPOs
- Exchange-traded funds
- Non-Convertible debentures
- Mutual funds traded on the stock exchange
Benefits Of A Demat Account
The Technological Strides Made In The Last Few Years Has Led To A Lot Of Benefits To Holding A Demat Account:
- Traders can make a transaction at their convenience, making it convenient and time-saving.
- There is no tedious paperwork required to register transactions.
- No risk of theft, delays, or forging of physical copies of share certificates, bonds, etc. since the securities are stored in electronic form.
- You have a single integrated platform for holding debt as well as equity instruments.
- Automated credits made to register demat account in case of bonus, splits, mergers, consolidations, etc.
- Eliminates need for multiple communications: every stakeholder is notified of the transaction through electronic alerts removing the need to contact the company, trader, investor.
- Address changes are updated with every company invested in by the investor through the Depository Participant.
- One single share can be bought/sold unlike earlier when shares were transacted only in lots.
- Removal of stamp duty costs which were otherwise associated with physical records of securities has led to significant reduction in the cost of trading.
