If you want to invest in the stock market, you must have Demat accounts. From the last decade, the entire stock market is going paperless and the technological advancement has made everything quite easy. Opening a Demat account has become so much benefit that you don’t need to maintain papers which is the aquite tiring task.
You can open ‘dematerialized’ account for safe investment and trading, but before that, you should know more about the best Demat account in India. The depository function of such account is almost like a bank. It can hold shares in electronic form. With the help of a depository participant, one can open an account with the depository. It works as the link between the investor and depository.
Facilities of a Depository
Whenever you have a Demat account, you can buy and sell shares and keep all tracks of your transaction through this. If you have any records through papers, you can also dematerialize those and transform them into electronics version. Presently, having such an account has also become beneficial for buying and selling of mutual funds.
Once you have depository, it will, time to time, aware you about the account statement that shows the balance of shares in your account and also information about all transactions. Among other services, offered by DP, are-
- Electronic settlement of trades in stock exchanges
- Nomination facility for demat accounts
- Pledging for dematerialized securities while taking bank loans
How to Open a Demat Account
The opening demat account is quite simple nowadays. You can open it through bank or brokers of any financial institutions. If you want to open a demat account from the bank with whom you have already an account, you will get attractive discounts for such account. If you are aiming for online stock trading, opening a demat account and DP account can be beneficial if you take the option of opening it with a broker or financial institution.
The charges you will be meeting, our annual maintenance fees, fees for a pledge of securities, transaction charges for a debit of securities, etc. Apart from these, there are additional charges for dematerialization.
There are lots of benefits of depository system in opening the demat account. Here are the facilities that the investors can enjoy-
- The electronic book entries help to transfer the securities.
- Dealing physical records is tough and there is a risk to lose documents. While everything is electronic, you can keep track of all your activities on the demat
- Electronic format is quite cheaper as there is no stamp duty cost and the brokerage cost is also lower than required in paper works.
- Having a depository means you can get rights and bonuses to your account. Therefore, quick disbursement is possible at low brokerage cost.
- If you have a demat account, you can easily invest in different asset classes.
Here you get information about the demat account and its benefits. If you haven’t open till now, go for it.