Significance of Demat Account

 

  • It is a time-saving approach to trading. Within a fraction of second, traders can transfer, buy and sell shares using their Demat account without wasting much time.
  • In one single account, all the mutual funds, equities, shares, bonds can be held. No separate account for different securities is required. Also at one place traders can check the status of different securities. They do not have to visit separate different accounts to do so.
  • Chances of losing physical certificates by some means like robbery, theft get reduced. And no more traders have to worry about the security of shares which they have in physical form earlier.
  • All orders are securely placed with the depository participant. Therefore traders do not have to visit different companies whose shares they are holding again and again.
  • Traders can trade in any number of shares even 1 by having Demat account which was not possible earlier when shares were physically held by the traders in the form of certificates. Traders can take a decision on the basis of their investment goals entirely and not have to focus on any other constraint.
  • The unnecessary cost of issuing and distributing physical copies of shares is completely eliminated. Although, if a trader wishes to have a physical copy of his/her shares he can. He/she just has to make a request for the same and pay its charge.

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