Open Demat Account for Better Trading

A Demat account in India enables an investor to buy and sell stocks list in the exchange and hold shares and securities electronically rather than in the physical form. The Securities and Exchange Board of India (SEBI) has made it absolutely necessary for all retail investors to open a Demat account, to trade in the equities market. The Depository Participants (DPs) are empowered by SEBI to provided services to the investors trading in securities, to convert physical share certificates into dematerialised shares. Your shares and other securities will get electronically held in your demat account, rather than you acquiring physical certificates of the shares.

There are many benefits regarding the opening of a demat account –

• De-materialised shares are safely and conveniently held in a demat account.
• Stamp duty is not levied on the account holder, while transferring of shares.
• 100% safety and hassle free way of buying and selling of shares and securities.
• Many broking companies opening a demat account generally do not charge, for opening an account.
• One can easily browse the internet for genuine brokers and the variety of demat account charges and services offered.
• Just like you can de-materialise shares, you can also re-materialise your shares into physical shares.
• Most broking companies provide trading platforms with effortless buying and selling of shares and securities.
• With live market updates, expert analysis and portfolio management are offered by broking companies with demat account.

The need for a demat account is all the more important, for the many pitfalls and limitations that physical shares has. Your physical shares may get displaced at the time of transition from one place to another, can get easily burned in case of fire, if you don’t get your signature right, then it becomes very difficult in trading etc. And perhaps this clarifies why holding shares electronically in a demat account is better than the paper form.