A Demat account is just like a bank account where securities and shares are kept in de-materialized form. Earlier the shares and securities were issued as a certificate or as physical shares and securities certificates.
The concept came into effect in 1996 as an alternative to physical shares. This account provides many facilities at a time.
You might already be knowing what is a Demat Account? I am also going to tell you here about the types of this accounts.
If you are also looking to open a Demat account free, click here.
You do not require to visit any share broker for buying and selling shares, mutual funds, currencies, and commodities.
It provides the facility to buy and sell shares and other tradable instruments at any time in market hours at one click.
You can open your Demat account free while sitting at home and just by clicking here.
There are three types of Demat accounts offered by depository participants in India. It depends upon multiple factors like your residential status. You must choose the right account as per your need.
Regular Demat Account
If you are an Indian resident, you must choose this account for trading shares and investment purposes.
This account is for NRIs and who wish to transfer funds to abroad. You need to link this account your NRE bank account to enjoy the facility of fund transferring abroad.
As name indicating, this account is for NRIs and fund transfer abroad is not allowed and needs to be linked with NRO bank account.
As we are learning about a Demat account, therefore, it is necessary to know the benefits of this account. Here are the benefits you should know.
A Demat Account can give quick & easy access to your investments and statements through net banking.
Also, these details can be available to you anywhere – computer, smartphone, or any other smart device.
If someone holds physical shares and has a Demat account can easily de-materialize his physical shares and keep them in your account safely.
Demat Accounts have replaced the time-consuming process with quick & easy methods to receive dividends, interest, or refunds. It is all auto-credited in the account.
It is also extremely convenient when it comes to updating investors’ accounts with stock splits, bonus issues, rights, public issues, etc. through electronic clearing service (ECS).
Transferring your shares is extremely easy with a this account. You only need to send in a duly signed Delivery Instruction Slip (DIS) to your depository participant to transfer your shares.
Shares can be sold easily without going anywhere and with one click.
The money after selling shares automatically credited to the bank account.
You can avail loan against your shares kept in demat account in a minute. No paper, no bank account detail is asked, immediately cash is made available in bank account.
You must open your online Demat account immediately to access these features and benefits of this account.
You also can freeze your account as and when you required it. This may for any security or other reason.
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