The word Demat account is the most important in the vocabulary of the investors because this is the best possible type of account that will be holding all the certificates of the investor securities into the electronic format. All these kinds of certificates were held into the physical format before the introduction of the Demat account but now it has become the mandatory requirement as per the SEBI for every investor in India.
With the pervasiveness associated with the internet and its importance implementation of opening the Demat account is very much vital and some of the basic benefits are:
- This particular concept is very much compulsory from the house of SEBI for all the people who are interested to trade on the securities listed on the stock exchanges. Every investor should have proper access to the broker along with a Demat account so that they can begin with the trading very easily and in a hassle-free manner.
- With the help of the right kind of Demat account every investor can very easily store their share certificates into the electronic format without any kind of issue and the best part is that these can be perfectly transferred to the investor so that there is no hassle at any point of time. With the help of electronic certificates in the Demat account, investors can directly participate in the stock market without any kind of stress about the storage of things.
- Investing in the stock market was a very expensive and time-consuming task before the introduction of the Demat account. But on the other hand, dealing with the concept of Demat account always make sure that everything will be carried out in a very hassle-free manner and the investors will be very much successful in carrying out the transactions very accurately and speedily. This particular aspect will always make sure that there will be no barrier in the whole process which was posed by the manual procedure in the whole system.
- Every investor can very easily raise the loans with the help of their shareholding into the Demat account which is another very important advantage of this concept. Demat account can be easily considered as the collateral in the cases of obtaining the loans and this particular process is very much smoother as well as hassle-free. People simply need to submit the statement of the Demat account to the bank so that they can get the loan in a very effortless manner without any kind of issue in the whole process.
The increasing number of opening of Demat account in India is the clear-cut indicator of the willingness of the people to invest in the stock market. The confidence of the people has been significantly given a great boost with the help of the Demat account and with the help of this particular system the stock market participation has also increased manifold.
When is, it is very much advisable for the concerned investors to have proper access to the Demat account from the house of 5paisa so that share market trading and investing can be carried out without any kind of hurdle in the whole process.