What are the advantages of opening a Demat account?
Imagine a trading business where all your shares were exchanged only in physical form. That’s right! Shares in the form of paper. So, every time you had to buy or sell a stock, you’d have to prepare yourself to do tons and tons of paperwork. Thankfully, technology has come to our rescue. Today, with the help of a demat account people can buy or sell their shares electronically. To trade or invest in the Indian stock market, you must first open a Demat account. Your shares and securities are held in an electronic format in your Demat account. The benefits of opening a Demat account are numerous. The following is a list of a handful of them.
- The ownership of shares and securities is significantly easier and more convenient with a Demat account.
- There is no risk of theft, damage, or misplacing the share certificate with a Demat account, as there is with physical holding.
- Demat accounts facilitate faster transfer of shares from one account to another.
- Corporate benefits such as dividends, interest, refunds, and so on can be disbursed or settled by the companies through the Demat account.
- It eliminates all the chances of mismatch between the address and the bank account.
- There is no deduction of TDS for Demat securities.
- Demat account eliminates the problem of bad deliveries.
- One can easily monitor and carry out transactions just by logging into the Demat account.
- There is no stamp duty or handling charges in the Demat account which lowers the cost of trading and investing in the stock market.
- A Demat account holds shares and securities in electronic form which significantly reduces the involvement of paperwork.
Open a free Demat account with PESB, https://ekyc.pesb.co.in/
The above mentioned are a few of the advantages of opening a Demat account. If you are looking to open a Demat account, you may consider opening it with PUNE e STOCK BROKING LIMITED. We are one of the most reputed and oldest broking firms in India.
