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.

• What is a Demat Account?

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.

• The Benefits and Features Of a Demat Account

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:

• Decreased Fraudulence - The risk of any forgery of signatures in any financial documents is nil. Fraudulent activity is prevented by the very fact that no physical certificates are exposed to duplication.
• Less Loss - Before the dematerialization of shares came about and Demat accounts were established, paper stock certificates were prone to decay and wear and tear. Consequently, inventors faced issues while conducting transactions. In a Demat account, there is no risk of this as shares are held electronically.
• Demat and Trading Account Linked - A Demat account saves time and makes the process of trading and holding shares simple. When Demat accounts are linked to trading accounts, a lot of time and effort is managed seamlessly. Moreover, there is no requirement of a physical trader to make trades.
• Decrease in Cost - As the trading of assets and their holding is  done online, in a digital manner, substantial costs relating to handling charges, etc, are prevented.
• All in One Spot - Investors and traders have the convenience of tracking their investments easily online, and assets can be accessed in a single place. Eliminating the hassle of physical certificates, a Demat account helps to make holding and trading assets hassle-free.

• Trade with Elan

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.

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