• Products
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    SipIt
    MTF
  • Platform
    Trading Platforms
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Trading Platforms
    Features and Tools
    Calculators
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
  • Market
    Market Movers
    Share Market Today
    Top Gainers
    Top Losers
    Stocks
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    IPO Allotment Status
    IPO Subscription Status
    Closed IPO
    Recently Listed IPO
    Quarterly Results
    Vertis Infrastructure Trust's Q1 FY 2025-26 Quarterly Results
    Highways Infrastructure Trust's Q1 FY 2025-26 Quarterly Results
    Handson Global Management (HGM)'s Q1 FY 2025-26 Quarterly Results
    Swan Corp's Q1 FY 2025-26 Quarterly Results
    Market Movers
    Stocks
    Indices
    Mutual Funds
    IPO
    Quarterly Results
    Share Market Today
    Top Gainers
    Top Losers
    52 Week High
    52 Week Low
    Volume Shockers
    Large Cap
    Mid Cap
    Small Cap
    State Bank of India
    Reliance Industries Ltd
    HDFC Bank Ltd
    Infosys Ltd
    Tata Consultancy Services Ltd
    Hindustan Unilever Ltd
    ITC Ltd
    IRCTC
    NSE
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    BSE
    Sensex
    BSE Bankex
    BSE Small Cap
    BSE Mid Cap
    BSE 100
    Indian Indices
    Global Indices
    Gift Nifty
    S&P
    Nikkei Index
    Hong Kong Index
    KOSPI Index
    Global Indices
    AMC's
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    Schemes
    Parag Parikh Flexi Cap
    SBI Small Cap Fund
    SBI Contra Fund
    Nippon Small Cap Fund
    ICICI Pru Technology Fund
    Upcoming IPO
    Current IPO
    IPO Allotment Status
    IPO Subscription Status
    Closed IPO
    Recently Listed IPO
    Taurian MPS IPO
    Karbonsteel Engineering IPO
    Nilachal Carbo Metalicks IPO
    Krupalu Metals IPO
    Shringar House of Mangalsutra IPO
    Galaxy Medicare IPO
    Urban Company IPO
    Jay Ambe Supermarkets IPO
    Vertis Infrastructure Trust's Q1 FY 2025-26 Quarterly Results
    Highways Infrastructure Trust's Q1 FY 2025-26 Quarterly Results
    Handson Global Management (HGM)'s Q1 FY 2025-26 Quarterly Results
    Swan Corp's Q1 FY 2025-26 Quarterly Results
    Borosil Renewables' Q1 FY 2025-26 Quarterly Results
    Jindal Steel's Q1 FY 2025-26 Quarterly Results
    SRI LOTUS DEVLPRS N RTY L's Q1 FY 2025-26 Quarterly Results
    Aeroflex Neu's Q1 FY 2025-26 Quarterly Results
    PVP Ventures' Q1 FY 2025-26 Quarterly Results
    NDR INVIT Trust's Q1 FY 2025-26 Quarterly Results
    Jaiprakash Associates' Q1 FY 2025-26 Quarterly Results
    Alps Industries' Q1 FY 2025-26 Quarterly Results
  • Learn
    Stockshaala
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Events
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
    Stockshaala
    Resource
    Investing Guide
    Events
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
  • Partner
    Business Associates
    Kotak Connect Plus
    Startup connect
    Business Associates
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
  • News

Use Of Demat Account

  •  4m
  •  1,445
  • Updated 17 Mar 2023

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.

1. Hassle-free Share Transfer:

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.

2. Quick Dematerialization And Rematerialization:

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).

3. Loan Against Shares:

You can use the shares held in your demat account to get a loan from your depository.

4. Freezing Of Account:

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:

  • Safekeeping Of Securities:

The physical copies of your share certificates and securities may get misplaced or even damaged. A demat account keeps them safe against such dangers.

  • Checking Fraudulent Activities:

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.

  • Simple To Maintain:

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.

  • Odd Lot:

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.

  • Economical:

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:

  • Experienced Analysts:

The depository participants (DPs) who work on behalf of Kotak securities are highly capable and qualified. So, you get the best financial advice.

  • Relationship Managers:

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.

  • Interday trading advantage:

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

The Final Word

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

Read More:

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Read Full Article >
Get Your Demat in Minutes!
+91 -

Get Your Demat in Minutes!
+91 -