Individuals need to open free Demat account so that they can efficiently trade into the stock market without any kind of hassle. Most of the Indians have a bank account in some of the other forms but normally people lack a lot of awareness about the benefits of having a Demat account. Demat account is considered to be the first step towards share trading and investing funds into shares and securities perfectly which is the main reason that one must go with the option of opening this particular type of account.
Following are the most important advantages of having a Demat account:
- The Demat account will always guarantee the people very easy accessibility to the shares and other investments through the smartphone, laptop or tablet so that people can very easily view and monitor their investments which will further make sure that people will be able to make the right kind of decisions all the time.
- People can very easily convert any of the security from its physical form to the electronic form and vice versa but the simple basic procedure is to instruct the depository participant about the whole process.
- The opening of a Demat account is also considered to be a very safe choice for the people because the share certificates kept in physical form can be subject to theft or several other kinds of issues which is the main reason that Demat account will always allow the people to mitigate all these kinds of risks perfectly and enhance the safety factor.
- A Demat account allows people to facilitate efficient trading all the time and in other words, people can even purchase and sell the securities through an online trading account. At the time of trading, the shares into the stock market with the help of this account people need to quote their Demat account number so that they can easily deal with all these kinds of things.
- The individuals must go with the option of having a Demat account so that getting out of the transactions becomes very easy and there is no issue in the long run. Now people will be under no obligation of visiting the physical office to purchase or sell the shares because everything will be very easily reflected into the Demat account within two days.
- According to the SEBI regulations, there is no stamp duty on the transfer of shares that are in electronic format which is another very important advantage of having a Demat account.
- Through the proper access to Demat account, people can even quickly receive money after selling the shares which is another very important advantage of having this particular type of account.
- Apart from all the above-mentioned advantages, people must also go with the option of having a Demat account because of different kinds of corporate advantages associated with it like dividend, interest and refund will be auto-credited without any kind of hassle.
Hence, everybody must open a free Demat account so that they can very easily invest in different kinds of instruments and can have a personalised portfolio analysis. Depending upon companies like 5paisa is a brilliant idea so that one can avail all the advantages of a good financial partner throughout the journey.