If you are interested in trading in stocks and also interested in ETFs, you should open a demat account. Now, trading has become paperless and the internet has made things quite easier. To buy and sell shares, you need to open a demat account. What is Demat Account? Actually, it is an online account that you need to open while you are trading in stock market.
There are certain essential benefits of opening a demat account. Are you an investor, no matter you are new or pro? Then, opening a demat account is compulsory. Before that, you should know the essential benefits of it. Read on to know more-
- Demat Account Can Never be Theft
This is one of the amazing benefits of demat account that traders can enjoy. In this format, shares are available in electronic form. Therefore, you don’t need to get worried about your certificates of being stolen. No forgery can be done with your trading certificates. If you have shares in physical format, there is a risk of losing them. But, while everything is online, you don’t need to get tensed about misplacing them.
- Transferring Share Is Easy
This is one of the advantages that attract traders to invest into the stock exchange by opening a demat account. To buy or sell shares, investors can easily transfer their holdings through Receipt Instruction Slip (RIS) or Delivery Instruction Slip (DIS). Get these slips as they play a vital role in making the transaction simpler and smoother.
- Transferring Shares Is Faster Now
Not only making transfer easy but opening a demat account can help you to transfer shares faster than before. Earlier, shares were sent to the registrar so that shares can be transferred for individual’s name. This entire method took months and often certificates also got misplaced. Presently, opening a demat account can make transfer easy.
- You Can Get Speedy E-facility
Now, users can send electronic slips as per the approval of the National Securities Depository Limited (NSDL). Thus, the entire process becomes more convenient and you can do it within lesser time.
- You Can Sell Shares at Low Price
Previously, it was a problem that individual shareholders could not sell shares with odd lots. With the advancement of demat account, shareholders can now sell any shares as a complete lot of 1 share.
- Getting Loan Is Now Easier
You will find several lenders who give you a loan against the securities that you have on your demat account. These are collateral holdings that assist in getting loans.
- Nominating Is Possible Now
Earlier, with the paperwork, this was not possible at all. But, things have been changed a lot with the advent of demat account. Presently, nominating individuals is easy if you have a demat account. Earlier, one must have a joint account holder to access this facility, but now there is no need of that.
So, here are the benefits of opening a demat account. Trading on the stock exchange is quite beneficial to get enough return. And to do that, you need to open a demat account.