Best Features of Demat Account to Make Investing Easier 2022

Demat accounts were first launched in India in 1996, before which equities and securities were issued and traded physically. The significance of establishing a free Demat account is that it enables investors to retain their securities digitally in their Demat accounts. The Features of Demat Account are that it makes the overall investing, holding, tracking, and trading process faster, easier, and more cost-effective.

Need of Demat Account

Since an individual can hold assets in either physical or digital form, the conversion of physical assets to digital form is voluntary. Physical certifications, on the other hand, are more difficult to track than their dematerialized equivalents.

Furthermore, buying and selling stocks in tangible form is complicated. When compared to individuals trading in dematerialised equities, the number of agents trading in physical stocks, and also the number of customers willing to purchase physical equity, is significantly lower.

Features of Demat Account

Let’s discuss the features of Demat account in detail to understand them properly.

When buying or selling securities, investors can use a delivery instruction slip (DIS) or a receipt instruction slip (RIS) to transfer their holdings. These slips allow users to supply all of the information needed to complete a transaction easily.

Depository account holders can give their depository participant (DP) directions to change physical certificates to digital form. Furthermore, if necessary, digital securities can be transformed to physical form.

Several lenders offer loans secured by securities kept in the borrowers’ Demat account. These assets are used as collateral by account holders to obtain loans.

If necessary, demat account holders can put their accounts on hold for a set length of time. This option is useful if you wish to avoid sudden debits or credits to your Demat account. The ability to freeze a particular amount of stocks in an account is also available.

Demat accounts are maintained online, so they can be accessed in a variety of ways. These accounts can be managed using a laptop, cellphone, or other smart device via the Web.

Customers can send instruction slips to the National Securities Depository Limited (NSDL) electronically rather than physically presenting them to the DP. As a result, the procedure is more easy and time-efficient.

Originally published at https://profitmust.com on April 30, 2022.