Buying and selling of shares in India are possible once you have opened a share market account. A person newly investing in stocks has to open Demat account compulsorily. Shares which are in the form of certificates need this sort of account. Share market account is the online way of dealing with shares while the offline method is tedious with the involvement of many documents. Some of the benefits of opening demataccountare listed as under:
Advantages of using share market account
- Fewer risks: There might be aloss of money due to theft or loss when one is physically dealing with securities. When one sells in shares in an online way, they have fewer chances of theft and damage,and it saves clients from risks while transacting it. Thus you must choose the best demat account in India to get all benefits.
- Trouble-free holding: It is nearly impossible to maintain securities on a manual basis. In case of ademat account, only one account is opened,and all the securitiesare secured at one place just.
- Peculiar lots: In case of manual securities, there is no chance of ways to deal withonlyprotection. The odd and onlysafeties have to be left off in handling in a physical way. While demat account solves all of these problems.
- Reduction in Cost: If you are dealing in securities physically, then you have to pay a lot of costs which includes astamp or any other expenses. These are not to be paid when one deal in thedemat account as these costs are provided online itself.
The opening of demat accounts save one from a lot of problems,and it is simple and easy to use. People do not have to fuss about anything in these accounts. Demat accounts also help to the advantage of thefinance plan.
- Secure transfer of shares: Transfer of shares become easy because of the inclusion of a releaseorder slip which helps in the transaction of shares. It maintains all the records so that the operations can run in a smooth way.
- Faster de-materialization and re-materialization of Securities: The online method of trading in shares is a recent concept which is not known to many. The depository participants help in this regard to converting the securities into theelectronicmode. The electronic forms get turnedinto physical ones.
- Pledge to get loans: Before buying the securities, people pledge securities in exchange for loans which are kept in their accounts. These loans provide collateral security to the clients.
- Account Freezing: One of the most significant advantages of demats accounts is that they can be frozen for aspecified This can prevent unnecessary credit or debit to the reports.
- NumerousAccessFacility: There are several options for accessing demat accounts as they are theelectronic mode of transferring shares. A client can use iton their laptop or phone.
- Speed Electronic Option: The instruction slips can be sent to DP’s directly by NSDL in an electronic form. This helps to save time and work progresses in a faster way.
- Corporate benefits and actions: Any dividends or refunds which a client receives are shown in demat accounts. This helps clients to keep a track record of their transactions.