IndiraSecurities

Demat account is the primary requirement to trade or invest in the Indian financial market. Demat account holds your securities in an electronic form thereby eliminating the need of holding physical securities. With a demat account, the whole process of trading and investing in shares, mutual funds, government securities, etc. has become more convenient and faster. Here are a few reasons that make a demat account important.

·Safety

Stock broker help you to build & manage your wealth for your better future .Demat account holds the shares and securities in electronic form which overcomes the risk associated with holding them in the physical form. With a demat account, there is no risk to your shares or securities of being stolen, misplaced or damaged.

·Trading

Trade in the stock market is not possible if you do not have a demat account. Unless you have a demat account, you won't be able to buy or sell shares of publicly listed companies.

·Hold multiple securities

Demat account helps the investor in overcoming the hassle of holding multiple securities by preserving all the securities in just one account. This makes the task of tracking financial products simpler and easier.

·Lower Costs

Additional costs like stamp duty and handling charges that were applicable to physical share certificates are not applicable in the demat account. The elimination of all such expenses has lowered the cost of trading and investing in shares.

·Odd Lots

When shares were traded in physical form, it was not possible to trade in a single security or odd lots. But with the introduction of a demat account, the problem of odd lots has been solved and now you can purchase any quantity of share you wish to.

·Flexibility

Demat account provides you the flexibility to operate it from anywhere you like. By using a laptop or mobile phone, you can monitor your investments and place transactions. All you need is an active internet connection.

The above mentioned are some of the facts that highlight the importance of opening a demat account. If you are looking to open demat account, you can get in touch with Indira Securities.

The functioning of stock markets has changed drastically after the introduction of technology. Long ago, the Bombay Stock Exchange use to run on floor trading system. With technological advancements, the system has completely changed. The amount of paper work has reduced significantly leading to no time wastage to issue share certificates to the shareholders. Instead, the shares are now issued to the shareholders in electronic form via the demat account. In this article, we shall understand the meaning of demat account and understand its concept. Stock broker help you to build & manage your wealth for your better future.

What is Demat Account?

Demat account is an account in which the dematerialised securities are stored and held. Dematerialisation is the process of conversion of physical shares certificates into electronic form. In simple words, holding of securities in electronic form is possible through a demat account or dematerialised account. Every investor is allotted a separate unique id with their broker under which their securities can be held.

Let us have a look at the benefits of demat account.

Benefits of Demat Account

Demat account has the following benefit:

·It leads to automatic updation of the transactions with the company. Therefore, it eliminates the need to give details like address again and again for different transactions.

·It saves cost, as no stamp duty needs to be paid. Earlier, stamp duty was charged on every security transfer.

·Maintaining and managing securities in the demat account is much easier than holding them in paper form like share certificate.

·The problem of odd lots that existed earlier is no more there. Now shares can be transacted in any odd lot numbers as per the desire of the investor.

·The delivery risks like forge shares, theft of share certificates, wrong deliveries have been eliminated with the introduction of demat account. Once a trade is executed, it is automatically reflected in the demat account.

· Demat account is not only meant for shares. Other instruments like bonds, etc. can also be held in a single demat account.

Technological advancements have had a positive impact on the stock markets. Now the transaction in securities can be done with just a single click. There are many Share Brokerage Firm in the market with whom demat account can be opened.

Indira Securities is one of the top most financial service providers. By opening a demat account with us, you get the facilities to trade and invest in stock markets at low brokerage rates. We guide our clients in the IPO application process. You can trade using our mobile application. We provide regular stock recommendations to the clients using stock analysis tools. To open a demat account with us or for any query, reach us via call or email.