Demat Account Features

The Demat account was made mandatory under the Depository Act,1996 by the Securities Exchange Board of India. Want a brief of Demat Account features? Let’s go ahead. 

The most highlighted benefits of Demat account are the lower risks, facility to trade in odd lots, reduced time & costs, and easy holding of financial securities.

They are – National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). With the introduction of these regulations, the fraudulent activities of the Indian Stock Market got eliminated.

Moving further, let’s discuss the Demat Account more.

SEBI Guidelines for Demat Account

Imagine, every time you have to buy or sell a commodity or share, you need to pull out the necessary documents. Go to the nearest broker outlet and then execute the trade.

Sounds extremely exhausting, right? Why not upgrade to the electronic form of storing your financial instruments and ease your trading experience?

Get a Demat account for free today & earn huge profits at the tap of your fingers while being at ease in the comfort of your home. 

But there are a few guidelines around the demat account from SEBI that you must be aware of, such as:

• You need to add a nominee to your demat account, although it is optional, it needs to be declared either way
• It is better if you have your aadhar card linked to your PAN card for a smoother eKYC i.e. account opening process.
• You must be 18+ years Indian citizen to open a mainstream demat account, although there are provisions to open a minor demat account too.
• You need to make an investment or trade, else a non-moving demat account for a year will be declared as a dormant demat account.
• You will be assigned an NSDL Demat account number (or a CDSL one, depending upon the depository your stockbroker is associated with), once your account opening procedure is completed.

Want a brief of Demat Account features?

We got your back, Jack. Read till the end, and you’ll have a good understanding of all the features of a Demat Account.

Interested in knowing features, know about SEBI Guidelines for Demat Account as well, which covers from opening an account to closing an account. Knowing all this will make your mind more clear about trading and can reap the benefit.

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Demat Account Advantages

The Demat Account features, for your easy understanding, have been listed below:

1. Fast Dematerilaisation & Rematerialisation of Securities

The process of digitizing the physical securities, also known as Dematerialisation (learn Dematerialisation meaning) & the other way round, i.e., Rematerialization, has become swift and doesn’t require a lot of paperwork.

With just a click, it will get processed.

2. Easy Share Transfer

Using DIS (Delivery Instruction Slip) or RIS (Receipt Instruction Slip), simplifying the buying and selling of shares occurred. These slips have the complete information required to carry out these tasks. You can do all this in Demat Account Transfer.

3. Loans Against Securities

The evolution from mortgaging your property to availing loans against the securities in your Demat account has become a massive jump for the credit industry.

Now, various institutions extend the facility to provide loans against securities in your Demat account.

4. Freeze your Demat Account

The biggest fear during the pre-Demat account era was theft. It was highly prevalent and led to huge losses.

With the introduction of Dematerialisation Accounts, the feature to freeze your account meant double safeguarding your securities. This feature allows the account holder to prevent unexpected debits.

It can either be for the entire account or some minimum number of securities that are fixed by you.

5. Corporate Benefits

With more comfortable updating technology available, the benefits of dividends, refunds, etc. are extended to the traders.

Furthermore, corporate actions like stock split, right shares are reflected in the Demat accounts, automatically.

Now you must be wondering what stock split is? Let’s take an example of stock split, suppose the stock split of a stock is 3 for 1, 5 for 1, or 6 for 1, which means that for every one share held by an investor, there will now be 3, 5, 6, respectively.

6. Various Access Options

As one can access Demat accounts electronically, the ways of accessing them are many. One can choose the access point that is in line with them and trade whenever and wherever.

7. SPEEDe Facility

This feature is the facility that enables the account holder to transfer, buy, or sell securities instantly. NSDL or National Securities Depository Limited extends it.

Also, apart from the advantages, you can know about Demat Account Types and invest accordingly.

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Conclusion

With Demat accounts, you can trade with ease while you are on the move. Make the best out of these facilities and enhance your experience of trading in the Indian Share Market.

Keep learning; keep investing!

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Want to open a Demat Account? Please refer to the below form

 

 

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