Owing to advancements in technologies, these days, shares are bought and vended online via web portals. Lately maximum of the investors in India are getting more fascinated to purchase and sell shares via online stock trading portals. Demat or the dematerialised account is vital for Indian folks to trade in listed stocks or debentures. As said by the Securities Exchange Board of India (SEBI) guidelines one is required to open demat account online where shares and securities are held in electronic form. It is unlocked by the investor while registering with an investment broker (or sub broker). Briefly it is a simpler and hassle-free way of trading online.
Benefits of Demat account
It’s miles a secure and handy way to hold securities. Now not best does the account allow immediate transfer of securities one additionally does not want to pay any stamp responsibility on transfer. Since it holds securities on-line it also removes the dangers related to physical certificates together with horrific shipping, fake securities, delays, thefts and so on. Moreover it cuts down the paperwork involved in transfer of securities as well as brings down the transaction fees. Additionally, whilst the use of the account one does no longer face the hassle of atypical masses as you may promote even a single proportion. The account additionally provides the power of nomination. An account holder has stocks automatically credited to the account inside the event of a bonus/ break up/ consolidation/ merger and many others. Moreover, you will keep investments in equity and debt devices in a single account.
Why I need a Demat Account
Currently, virtually all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has permitted trades of upto 500 shares to be settled in physical form, traders no longer wish to hold physical shares. Henceforth, to open demat account online is a must for trading and investing.
Share market is a place where shares are issued and traded either via exchanges or over-the-counter marketplaces. Individuals invest their money in shares for long term and buy/sell shares for getting profit. For trading in share marketplace, demat account is compulsory as per SEBI guidelines. It is like a bank account for holding securities.
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