What are the features of Demat Account?
Technology has made the world smaller in many ways. It is also convenient and safe when it comes to investing in the stock market today. Dematerialized accounts or Demat Accounts were introduced for easy handling & maintenance of shares and other such holdings. However with time, it kept on adding to the ease of trading and holding investments.
Features of a Demat Account:
- : 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 an investor holds certificates in physical form, he/she only needs to give instructions to the depository participant (DP) to convert it in an electronic form. Similarly, certificates in electronic form can be converted into physical form on request, if needed.
- 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).
- Transfer of shares on buying or selling have also become much easier. Earlier physical transfer of shares would take about 1 month time or so. With this process simplified, costs have also come down. There is no stamp duty on transfer of securities held in the electronic form.
- Demat Accounts have made it simpler, faster and convenient to get money on selling shares.
- As a Demat Account holder, you can avail a loan against the securities held in your Demat Account.
- Specific type or quantity of securities in a Demat Account can be frozen by the Demat Account holder. He/she can also choose to freeze the Demat Account for a certain period of time. This will stop the transfer of money of any Debit or Credit Cards into the particular Demat Account.
- : Demat Accounts have played a significant part in giving foreign investors an easy access to the Indian stock market. And rise in foreign money in the stock market has helped the overall Indian economy in turn.
Read more on the benefits of the Demat Account here.
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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.