A Demat Account lets you physically trade or issue the securities and shares. Introduced in the year 1996, in India Demat account authorize the investors to take care of their shares and securities electronically. If you are willing to buy and sell the shares than Demat Account is mandatory for you.
The major advantage of having a Demat Account is it makes monitoring, holding, trading and investment of your shares and securities, faster, reasonable and easier. You just have to open a Demat Account once, and you will experience smoother operations, without the involvement of any document or signature.
Here we will be checking out some of the Advantages of Opening Demat Account:
Advantages of Opening Demat Account:
No risk of thefts and Robberies
Unlike the earlier days when you have to hold your share certificates physically, which was quite risky, Demat Account takes all the risk away.
Eliminating all the old-generation risk of share certificates getting stolen, Demat Account makes your share secure from thefts and Robberies.
When the demat account was not introduced in India, transferring the shares from a shareholder to someone else use to be a hectic process. Firstly you have to send all your documents and certificates to the company your shares belong to and also to the registrar. This process of share transfer uses to take weeks and months if time. Sometimes the scenario gets worse when you end with nothing but losing your certificates in the complete process.
With the presence of Demat Account, the situation has changed for the better. Today you need not spend months for share transfer, all you have to do is press a few buttons and you are done.
Your Demat Account holds your every debt in a single account and also provides you updated regarding the same. You need not make rounds of stock exchange office for any updates. As your demat account is a complete representation of all your debts, shares and certificates it does everything Automatically.
No Stamp duty
Earlier the process of share transfer use to involve stamp duty, where you have to physically buy shares, get the stamp duty procedure done and stick everything with your certificates. This use involves visiting registrar and stock exchange office so as to purchase the stamp.
With the advent of Demat Accounts the scenario has changed, you need not apply for stamp duty and do not need any physical documents if you have already paid the security transaction tax.
During the old days, it was really tough to sell shares with odd-lots. Earlier, if you have 55 shares and you are willing to share it, than it was next to impossible for you to do so. Your share should always be in the market lot format like should be present in 100,200,1000 and more.
However, the things have changed these days. Now a demat account holder can even sell a single share, without being worried about the odd-lots or market-lots.
Easy to Have
Trust me it is very much difficult to take care of so many documents and certificates when you are on the stock exchange. Every time you sell or buy any share you have to carry the load of documents and certificates and thus making the complete procedure very hectic.
On the other hand, with Demat Account, there is no need to show your whole set of documents every time you perform any shares related approach.
Nomination is another very important Advantages Of Opening Demat Account. Unlike the olden times when the shareholder was not given the opportunity of nomination, today, one can do the same with the help of the demat account. All you need to create is a join Demat account, and you are through.
Easy and smooth joint demat account is one of the Advantages Of Opening Demat Account with Angel Broking. You just have to submit required documents and let Angel broking do the rest.
Multifunctional Single Account
There is no need to open a different account to manage your debts like NCDs, Tax-Free Bonds, and Bonds. Single Demat Account is enough to operate and manage all type of debts.
Gone are the days when you have to weight for weeks holding the bunch of certificates, to credit your shares and bonuses. Demat Account also made Crediting of shares and bonuses easier than ever.
As I have already mentioned that you need not have certificates while dealing with the demat account, the time for Crediting bonus and as shares become surprisingly lesser.
As Demat is an online procedure, it doesn’t require you to spend an extra penny. Unlike the old procedures where you have to spend your expenses on registration, stamp duty, certification and all the other procedures and documents, you do not have to do the same with Demat Account.
Demat Account does everything online and holds the online record of everything required to deal with shares and securities and hence you need to pay any additional cost for the transfer and selling of your shares and securities. This is also one of the Advantages Of Opening Demat Account with Angel Broking.
Open Account with almost no extra efforts
Easy account opening is also one of the Advantages Of Opening Demat Account with Angel Broking.
Opening a demat account is an effortless process where you just have to submit a few documents and you will easily get access to your Demat Account. You know what the best part is! Even if you have no shares in your hand you can still become a Demat Account holder. Isn’t that great?
Now let me tell you how you can create a Demat Account with Angel Broking:
- Select a Depository Participants (DP).
- Fill up the demat account opening form and submit the required documents.
- In India PAN card is a must-have for a demat account.
- After you submit the form you receive a copy of the terms and conditions and rules and regulations.
- Here you will also get to know about the incurred charges.
- As here we deal with precious shares, it also involves in-person verification. Any of the DP staff members will visit you on the address mentioned and will verify the details.
- Once done with the meeting or verification, the Depository Participants will be served with the Client ID or an account number.
- As soon as you receive these details, it is always advisable to check the same with an online account.
- After this, you will have to pay an annual maintenance fee which will allow you to make account transactions. These charges completely depend on the DP you choose.
And you are done! Now you can take the benefits of efficiently selling and transfer of shares.