With the help of the Demat account, the procedure of trading and investing in the present Indian stock market has eased out quite a bit. It has been a procedure of converting the physical shares into their electronic format. It is one major need for opening a Demat account before transacting in the present Indian financial market.
The Demat account will eliminate all forms of risks, which were associated with holding securities or shares in their physical forms. So, you are going to learn more about the importance of the Demat account or dematerialisation, which will surely work in your favor.
The benefits involved in this section:
Now, you must be wondering why to head towards dematerialisation when it comes to the stock market section. Going through the benefits will help you to understand the norm better and work towards it in the best possible manner.
Convenience is the main point of consideration:
The Demat accounts will offer you the facility to just carry out transactions in an electronic manner. So, there won’t be any need for you to be present physically at the broker’s place for settling down a transaction.
- On the other hand, the investor will now have direct access to the Demat account with the help of a smartphone or computer.
- Along with that, you get the chance to convert the physical holdings into electronic format, which will help you to be the legal owners of your shares.
Transferring the funds:
By just linking out the Demat account with your main bank account, you can use the power of electronic motion for transferring funds within a short notice period.
- This is one way to save you from all the hassles of drawing a cheque or just transferring the funds mutually.
- Your physical presence is not mandatory when you have the Demat account associated with your main bank account now.
Safety of the points:
Demat account or dematerialisation is noted to be a safe and secure way to carry out all the major transactions using electronic means over here. All the risks like damage, theft, loss of share certificate and more will now be issues of the past. These were mainly associated with holding shares in their physical form, which will be eliminated completely for sure.
Nomination facility around here:
Demat account will offer you the facility to just grant the perfect access or right to operate Demat account to the nominee when you are not there. Thanks to this facility, you are able to carry out all the possible transactions within your Demat account with the help of the nominee when you are not able to handle the situation on your own.
Always a paperless option:
Those days are long gone when you have to carry certificates and papers for the sake of maintaining your Demat account. With the electronic transaction and help, you can go paperless in any way you want. Moreover, you have the options profit calculator to learn more about the profits you are making and the calculative point to address here too.