Importance of Demat account

Demat account is like a locker where your shares are in electronic forms. The Demat account presents a simple form by which securities can be handled.

·         Corporate benefits & actions:

corporate actions like right shares, bonus issues, or stock split are automatically updated in the Demat account of all the shareholders.If the companies offer dividends, interest, or refunds to their investors, these advantages are automatically available to the Demat account holders

·         Easy share transfers:

Traders can transfer their shares via delivery instruction slip (DIS) or receipt instruction slip (RIS)..

·         Quick conversion  of securities:

Modern time electronic securities can also be reconverted to physical form, if necessary.Demat account holders can give direction to their depository participant (DP) to convert physical certificates into electronic form.

·        Pledging facility to avail loan:

Few lenders offer loans against your shares held in the Demat account. These holdings are used as collateral to avail loans by the account holders.

·         Freezing Demat accounts:

The freezing choice is accessible for a specific quantity of securities held in the account , If required, Demat account holders can freeze their accounts for a certain period. This is beneficial if one wants to prevent unnecessary debit or credit into one’s Demat account..

·         Multiple Accessing options:

These accounts can be accessed via the Internet using a computer or smartphone, Demat accounts are operated electronically, which means these can be accessed using different modes.

·         SPEED E-Facility:

The NSDL, which stands for National Securities Depository Limited permits users to send instruction slips electronically instead of submitting the slip physically to the DP. This makes the process quick and convenient.