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What is the conclusion of an Online Demat Account

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Published Date: 28 Sep 2021Updated Date: 14 Jan 20256 mins readBy MOFSL
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If you want to actively trade in the stock market, you have to mandatorily open demat account. Since the buying and selling of shares is executed online nowadays, a Demat account is necessary to make processes seamless and guarantee transparency in financial transactions. An online Demat account is a boon to traders, but most traders don’t know about many of its features and aspects. Besides just opening an online Demat account to facilitate the trading of shares, doing so with a reliable broker like Motilal Oswal is of utmost importance. This brings us down to the key role of this article which is to highlight the features of a Demat account, coming to the conclusion of its relevance. 

  • Rapid Access

A Demat account holds a strong resemblance to a bank account that holds your funds. The only difference is that a Demat account holds stocks and securities. In fact, if you hold a bank account, your bank may be the best place to open a free Demat account too. Just like you have swift access to your bank account via online means, you can access your portfolio in a Demat account in much the same way. By operating it online, you can keep a track of your investments and trade via the internet as well. When you have a login ID, you can access your Demat account from practically any location. 

  • Share Dematerialization

Probably the most relevant feature of any Demat account is the fact that shares held in it are in electronic form. If you still hold old shares in the form of certificates, you can convert them into digital formats that allow you to keep your holdings safe and secure. The dematerialization of shares involves sending a request to convert physical shares into a digital format and you can easily make this request to your depository participant or DP. 

  • Transfer of Shares 

One vital benefit among Demat account features is the convenient and effortless transfer of shares that can be undertaken. Once you trade in shares, buying them quickly, they get transferred to your Demat account incredibly quickly. In case you wish to transfer shares from one Demat account to another, this is done quickly and effectively in a matter of a day. 

  • Cost Effectiveness

Dematerialization has facilitated the lowering of costs of trading. Previously, for physical share trading, costs like stamp duty were hefty and ate into profits of traders. Now, with the advent of digital trading, costs have declined substantially. 

Concluding Comments 

If you open a free Demat account with your own bank, you will see the benefits of this in many other ways than mentioned, such as the digital transfer of share dividends directly into your bank account. Alternatively, you can open a Demat account with minimal costs attached at Motilal Oswal and get a plethora of ideas to increase your wealth portfolio. 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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