8 reasons to justify why every Indian should have a Demat account
May 30, 2021 16:26
The Demat account is an account that will allow people to eliminate the risk of holding physical share certificates because the securities which will be purchased and sold by the people will be held into electronic form in this particular account.
The safety concern has been perfectly addressed with the introduction of Demat accounts and securities getting stored into an electronic format. According to the SEBI, people must hold a Demat account whenever they are interested to trade in the stock market by selling or purchasing the securities.
Following are the most important points which very well justify why every Indian should have a Demat account:
1.One of the most important reasons for having a Demat account is the lower risk element involved in the whole process. All the threats which were posed with physical securities in the form of theft, loss or damages will be eliminated with the opening of the Demat account because every investment will be undertaken in the electronic format.
2.The Demat account will always make sure that conversion of securities will be undertaken without any kind of issue and in no time by simply giving the instructions to the deposit participant. One can very easily initiate the Dematerialisation for abilities to convert the physical share certificates into electronic form.
3.The whole process of online Demat account opening is also very easy and comes with several kinds of safety features based upon two-factor authentication which makes this option a better one. The introduction of the Demat account will also help in eliminating the risk associated with physical shareholding in the form of theft, damage or loss.
4.The Demat account also comes with very easy access and monitoring and will make sure that operating will be perfectly undertaken without any kind of issue. It will facilitate easy accessibility and will help in monitoring the holdings from the comfort of home place.
5.Opening and managing the Demat account is very much quick as well as convenient because everything is in digital format and is conducted online which further make sure that time-consuming element will be eliminated from the whole process and people can simply purchase or sell the funds and securities in a matter of few seconds.
6.There is no need for any kind of stamp duty whenever the individuals are trading with the Demat account which will further make sure that overall goals will be efficiently achieved.
7.The Demat account also comes with several kinds of corporate gains in the form of a stock split, right share, bonus issue and various other kinds of things because everything will reach the Demat account holder without any kind of delay.
8.Apart from the shares and securities people can also indulge in investments of different kinds of things like equities, bonds and various other investment options which can be organised into a single place with the opening of Demat accounts.
Hence, whenever the individuals are interested in availing the advantages of Demat account then depending upon professional companies like 5paisa is highly advisable because this company comes with the best possible Demat account in the whole industry to cater to all the user needs perfectly.
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