A demat account is an online trading platform that can be used to trade digitally on stock markets. The use of demat account is preferred over physical transaction for buying and selling stocks online.
You can use a receipt instruction slip to buy shares instantly. You can use a delivery instruction slip to sell shares. You can use such slips to provide the needed details and smoothly complete a transaction.
The depository participant can convert any physical share certificate into digital data (dematerialization). He/she can also convert any online security into a physical document (rematerialization).
You can use the shares held in your demat account to get a loan from your depository.
You can opt to freeze your demat account for a certain period. This is usually done when an investor wants to control the debit or credit flow of the account. Read more: How to open a demat account
A demat account allows you to trade digitally. It is just like a bank account to keep your stocks and shares. The main purposes of a demat account are:
The physical copies of your share certificates and securities may get misplaced or even damaged. A demat account keeps them safe against such dangers.
A physical certificate is vulnerable to fraudulent transactions, signature forgeries, etc. But such threats are nullified when they are held digitally. This is the chief importance of a demat account.
It can get very difficult for you to physically maintain all the records. You must file the certificates and check them from time to time. A demat account makes the job very easy. You can store, track, and maintain all the shares with ease.
In the pre-demat era, shares were not sold in odd lots because of the inconvenience associated with the job. But you can easily buy shares in odd lots via a demat account.
Physical trading is more expensive. It involves handling fees and stamp duty charges, among others. A demat account eliminates such charges and makes the whole process more economical for you. This also makes trading faster as you have less paperwork to deal with. Read more: Best demat account
Anyone who wishes to deal in the financial markets should have a demat account. This account helps you trade in a smooth and simple manner. The dealings are safe as well. The aims and objectives of demat account make it suitable for all investors.
You need to choose a good depository for opening the demat account. Kotak Securities is one of the best options as it offers the following advantages:
The depository participants (DPs) who work on behalf of Kotak securities are highly capable and qualified. So, you get the best financial advice.
Kotak Securities assigns a special relationship manager (RM) for every demat account holder. This makes it easier for you to get your doubts cleared. It also allows you to trade in a very smooth manner as the RM assists you at every step.
You get the interday trading benefit when you open a Kotak Securities demat account. No brokerage is charged for interday trading.
Read more:: Informative report on demat account
You need a demat account for digital trading. It smoothens the process of investing in the financial markets. Your transactions become safer and your money grows at a faster rate. Open a demat account today to participate in simple and seamless trading and investing.
Read more: Conclusion of demat account
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