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These Are The 6 Benefits Of Having a Demat Account

19 Jun 2023

Dematerialization or Demat Account is useful in holding your securities and shares in the electronic form to facilitate hassle-free trades. You can utilize any top Demat account in India to hold investments that you make, be it in bonds, government securities, exchange-traded funds, shares, or mutual funds. Securities and Exchange Board of India (SEBI) registered Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NDSL) are the two depositories that expedite the opening of a new Demat Account via a DP (Depository Participant).

Let's dive into the benefits of having a Demat account in India.

  • Benefits of a Demat Account:

To settle a trade electronically, you must have a Demat account. Trading electronically addresses the safety concern associated with physical trading. 

By the end of November 2019, the total Demat account in India stood at 7.7 Crores. This is owed to the outstanding features of the trading account that allows you to enjoy several benefits. The best trading account in India offers you the following benefits:

  1. Easy Monitoring and Access - Fully online operated Demat accounts provide you with easy monitoring and access to your trading account from the comfort of your home. No matter where you are and what time it is, you can trade, monitor, or access your account within seconds. 
  2. Safety Amenities - Top Demat account in India allows you with 2FA (two-factor authentication) which eliminates the risks associated in the form of damage, loss, or theft with physical shareholding. This is a crucial benefit for many, as it gives them the assurance required to jump into the trading market.
  3. Convenient and Quick - Trading online with a Demat account involves digital formats which make things swifter and more convenient. You can transfer, sell, or buy securities and funds with the snap of your finger. 
  4. Requiring Zero Stamp-Duty - In the case of physical trading, there are extra charges in the form of the handling fee, stamp duty, etc. You save unnecessary expenses as all of these additional costs are removed when you trade using Demat accounts. 
  5. Corporate Gains - Demat accounts automatically update the bonus issues, stock split, or right shares provided by companies. This means that you would receive the refunds, interests, or dividends on your account with no delay. This feature is automated which makes your online trading convenient.
  6. All-in-one Investment Account - By opening a Demat account, you can organize all your bonds, equities, other securities, shares, and investments in a single place. This makes trading systematic and hassle-free. 
  • The Bottom Line:

A Demat account eliminates the challenges faced while dealing with physical trading. You can easily open an online Demat account with no shares and zero balance. Dematerialization accounts involve an uncomplicated process that makes trading faster, simpler, and easier. You can avail of a loan against the securities held in your Demat account. Furthermore, you can hold or freeze your account with a certain quantity of stock for a given period. With the help of a Demat account, make your trading experience a stress-free one.

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