Investment

What is a Demat Account?

What is a Demat Account?

What is a Demat Account?

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.

Types of Demat Account

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.

Repartriable Demat Account

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.

Non-Repartriable Demat Account

As name indicating, this account is for NRIs and fund transfer abroad is not allowed and needs to be linked with NRO bank account.

Benefit

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.

  • Easy and hassle-free settlement
  • Hassle-free delivery
  • Share trading is very easy
  • Increases trading volumes and market participation
  • Transparency is the key to Dematerialization
  • No Paperwork mess
  • Quick and easy passing of information to investors
  • Risk-free transactions of instruments (shares and other investment instruments)
  • Build trust amongst investor
Features

Easy Excess

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.

Easy dematerialization of securities

If someone holds physical shares and has a Demat account can easily de-materialize his physical shares and keep them in your account safely.

Receiving stock dividends & benefits

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).

Easy Share transfers

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.

Selling of shares

Shares can be sold easily without going anywhere and with one click.

The money after selling shares automatically credited to the bank account.

Loan against securities

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.

Freezing Demat Account

You also can freeze your account as and when you required it. This may for any security or other reason.

nand verma

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