Digitization has revolutionised the way the world works. In every field, and especially in the financial sector, the digital means of conducting business is all too common. You may have heard of people from a couple of generations ago trading in physical shares and stocks. Paper certificates were the norm then, digital formats are the norm now. The boon of technology has ridden the trading and investing platform of unnecessary paperwork, replacing it with assets held in electronic formats. With the aid of a Demat account, any assets can be held by individuals in digital formats.
When you are an investor or a trader, you need to have a Demat account along with a trading account connected to it. A Demat account essentially facilitates the holding/storage of shares in an electronic format. In turn, both these accounts can be linked to your bank account to smoothly manage the buying and selling of any assets traded on exchanges. An online Demat account linked to a trading account can be opened with a bank that has this facility, or any leading brokerage like Motilal Oswal. As you can tell, shares and any other assets that individuals hold while conducting trading activity are safely and securely held in a storage system. Before Demat accounts emerged, the settlement of any trades undertaken took almost a fortnight. With an online Demat account, settlement is instant. Apart from this obvious advantage, Demat accounts have many features that spell benefits.
SEBI, the Securities and Exchange Board of India, the chief regulator of trading and transactions done on exchanges, has made it compulsory for investors to open Demat accounts if any trading is to be conducted. Nonetheless, for investors and traders, the best Demat account may well be any one that is opened with a top-notch brokerage, one like Motilal Oswal, where you can get features and advantages like those below:
As an investor, you would want transparency and security in all your transactions. You can have both these features and many more if you open a Demat account with Motilal Oswal and get going as a savvy investor.