All You Need to Know About aDemat Account
A demat account or a dematerialized account is similar to a bank account. The only difference is that in a bank account we deal with money and in a demat account we deal with shares and securities. It is a boon for the shareholders as it offers many benefits with the ease of transaction of shares being a major benefit. Read on to learn more about this type of account. Know About aDemat Account
Advantages of a Demat Account
Demat account is loved by the shareholders owing to the various advantages it offers. Here are some of its advantages: Know About aDemat Account.
• It allows the shareholders to store the shares and securities electronically thus saving the hassle of storing and maintaining the hard copies.
• It is not just a convenient option but also a safer option. Risks such as thefts, delayed deliveries and fake securities are eliminated with a demat account.
• It ensures decreased transaction cost.
• Transfer of securities is made easy due to less paperwork.
• Shares and securities can be sold and purchased smoothly via this account.
• There is no need for notifying companies as the securities’ transmission is done by Depository Participant.
• Transactions can be made from anywhere with the help of a demat account.
Procedure to Open Demat Account
Many banks provide the option of opening a demat account. The procedure to open demat account is quite simple. Know About aDemat Account.
• In order to do so, you have to approach your Depository Participant which may be your bank or broker. As you open a demat account, your actual shares will be deposited with NSDL or CDSL.
• Next, you require submitting your KYC documents along with duly filled account opening form, copy of your pan card and few other documents.
• Next would be an in-person verification wherein either a representative will visit your place or you can visit the centre.
• The allocation of demat account number is done after all these formalities. You are then assigned a DP code with which you can do all the transactions.