Benefits & Features of Opening a Demat Account

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Digitization has taken the world by storm. Gone are the days when people traded in physical shares and got indulged in tons of paperwork. Today is the age of Dematerialisation. Technology has been a boon to all of us and helped us in investing in stocks electronically with the help of a Demat account. India introduced the Demat Account system in 1996 to eliminate tedious paperwork and the need to hold physical share certificates.

A Demat account holds shares and securities in an electronic format and thus facilitates easy trading. A Demat account is an account where shares are bought and held while pursuing online trading. It holds all the investments of a person at one place. With many benefits like safety and security, faster settlements, the easy transmission of shares, quick liquidity & monetization and elimination of the odd-lot problem, a Demat account is a must-have in today’s time. It acts as one-stop storage for all your investment in multiple asset classes.

There was a time before the dematerialization of shares when the settlement of trade used to take 14 days. However, with the emergence of Demat accounts; the same happens in 2 days now. Also, there is no risk of trading in securities as these accounts are absolutely safe and secure.

Benefits of opening a Demat Account:-

There are multiple benefits of opening a Demat account. Some of which are listed below-

1. No risk of Forgery
The risk of forging a signature in financial documents is nullified with a Demat account. It puts away the risk of duplicate certificates too as all the documents are processed electronically.  

2. No loss due to paper loss or damage
In the olden days, there were a lot of issues faced by the investors as they could not sell or transfer their shares due to the decaying of paper and dabs of ink. Also, sometimes the papers were lost, hence caused a great inconvenience for the investors.

3. Lower Costs
Holding shares physically involved a lot of cost like paying for handling charges etc. However, opening a Demat account is an instant process and such charges are eliminated from the process.

4. Lesser Time
Simplicity and time-saving are the two major attributes of a Demat account. Now one does not need to wait for a trader to get involved in the physical buying and selling of shares. Dematerialization has made this process seamless and also saves a lot of time.

5. Easy Holding
With a Demat account, maintaining the holdings have become simpler. An investor or trader can track all his investments through a single Demat account rather than maintaining several physical certificates.

In today’s time, it is possible to open an instant Demat account effortlessly. The process happens online too and it saves a lot of time, money and effort.

To open a Demat account, you first need to choose a Depository Participant (DP) with whom you would wish to open a Demat account. On submission of various documents and filling out the requisite forms, the DP will inform you about the rules, charges and terms of the agreement. On completion of all the formalities, you will get your Demat account number and client ID from the DP and you can access your Demat account online.

The process is instant and simple. Head on to open a Demat account with mastertrust today.