Key Features Of Demat Accounts
You need to open a demat account to buy and sell securities in the stock market. That’s because all transactions are performed electronically nowadays.
Are you planning to start trading soon? Learn about the features of a demat account before you apply for one:
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Speedy Transfers
The transfer of physical share certificates could take anywhere from two days to two weeks. With demat accounts, the shares are held in the digital form. These can be transferred in just a few hours.
Related: Why every Indian must have a demat account
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Secure Holdings
Physical certificates can get stolen, lost, or forged. Since demat accounts hold them in the electronic form, such risks are reduced.
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Convenient Trading
You can transfer securities via your demat account from anywhere in the world. You are no longer restricted by location. And there’s no need to send physical certificates to any registrar. Related: Dormant demat account reactivation
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No Restrictions
Your demat account does not have any restrictions in trading. You can transfer even a single share without any hassle. In contrast, physical shares had to be transferred in lots.
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Costs Minimised
There are no stamp duty charges associated with demat accounts. Say goodbye to handling charges and other such expenses as well.
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Easy Portfolio Management
A demat account holds all your shares and securities in one place. This makes it easy to manage your portfolio and track all your investments.
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Multiple Modes Of Access
You can access your account through your smartphone or computer. All you need is access to the internet. Related: Demat account for minor
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Freeze Option
You can freeze your demat account for a specific amount of time. Freezing your account will prevent the transfer of securities both in and out of the account.
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