What is Demat Account

Demat Account | Advantages of Demat Account | Remat

As per the regulator for the securities market, SEBI (Securities and Exchange Board of India), every individual who wants to trade in stock market must have a Demat Account or Dematerialized Account. In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. Every Investor opens a Demat Account while registering with an investment broker  The Demat account number is quoted for all transactions to enable electronic settlements of trades to take place. The Demat account holds several advantage on previous system thats the reason more and more investors are attracting towards investing in security market. Demat account eliminates the need of paper because shares and securities are kept in electronic form.

Advantages of a Demat Account.

• It reduces the brokerage charges.
• It helps avoiding bad deliveries caused by signature mismatch.
• It makes hypothecation of shares easier.
• It makes transactions safe and fast it eliminates risks associated with forgery, counterfeiting, and loss due to damaged stock certificates.
• It Shorter settlements thereby enhancing liquidity Change of name, address, dividend mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the DP. 
• Receipt of non-cash benefits in electronic form

Remat (Rematerialization) 

The process of converting your Electronic holding back to physical holding of securities termed as Rematerialiazation.

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