KARVY DEMAT ACCOUNT
Offering a wide trading platform with dual membership of NSDL and CDSL, KSBL is a powerful medium for trading.
RELIGARE DEMAT ACCOUNT
Religare Broking Branch access to take care of your Investment needs. Call n Trade Assistance. Free Online Demat A/C.
ONLINE DEMAT ACCOUNT
Demat account functions like a bank account, where your bank balance is a mere entry in the bank passbook and you do not hold the cash physically. Securities too are held in an electronic form (demateralised form), in a similar manner and debited or credited.
Demat account digit is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting.
Access to the Dematerialized account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the Dematerialized account are automatically made once transactions are confirmed and completed.
BENEFITS OF DEMAT ACCOUNT
The benefits of demat account are as follows:
- Easy and convenient way to hold securities
- Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated)
- Reduced paperwork for transfer of securities
- Reduced transaction cost
- No “odd lot” problem: even one share can be sold
- Change in address recorded with a Depository participant (DP) gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately.
- Transmission of securities is done by DP, eliminating the need for notifying companies.
- Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc.
- A single demat account can hold investments in both equity and debt instruments.
- Traders can work from anywhere (e.g. even from home).
- Benefit to the company
- The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency of the registrars and transfer agents and the secretarial department of a company. It provides better facilities for communication and timely service to shareholders and investors.
- Benefit to the investor : The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc. It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities.
- Benefits to brokers
- It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors.
HOW TO OPEN DEMAT ACCOUNT
- Fill up the form, paper or paperless & submit for verification.
- All your details are scanned and verified for opening your account.
- Once verified, you receive a unique ID & voila, you are ready to trade.
ADVANTAGE OF DEMAT ACCOUNT
In the Depository System, the ownership and transfer of Securities takes place by means of electronic book entries. Demat account holders can buy and hold Shares, NCDs or other debt securities. They can access the account just like a bank account with the following advantages and safety features :
- No Stamp duty on transfer of securities.
- Immediate and fast transfer of securities.
- Elimination of ‘Bad Deliveries’.
- Elimination of risk by loss, theft, mutilation etc.
- Faster settlement and disbursement of Corporate benefits like Bonus, Rights, Dividends etc.
- Elimination of mismatch in Bank Accounts and Address.
- Convenient Nomination facilities.
- Convenient Transmission formalities in case of death of a holder.
- No TDS deduction for demat securities.
- Demat account information and statement regularly sent to the customer.
FEATURES OF DEMAT ACCOUNT
Physical securities are risky due to thefts, losses, or damages. In addition, bad deliveries or fake securities pose further risks. These risks are completely eliminated with the opening of a Demat account, which provides holders with the option of holding all their investments in electronic form..
Maintaining physical certificates is a tedious job. Moreover, keeping track of their performance is an added responsibility. Demat account holders can make it more convenient to hold and track all their investments through a single account.
With physical certificates, buying and selling were possible only in the specified quantities. The convenience of dealing with odd lots or single security was also not available. Demat accounts eliminate this issue.
Physical certificates involved several additional costs, such as stamp duty, handling charges, and other such expenses. These extra expenses are completely eliminated with Demat accounts.
Due to the elimination of paperwork, the time required in completing a transaction gets reduced. The reduced time requirement enables the account holder to make more purchases and sales of security holdings in a shorter time and with greater efficiency.
Demat accounts are simple, fuss-free and extremely lucrative. In today’s day and age, they are a must for financial planning.
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