An overview of the benefits and features of a demat account


A demat account enables investors to take advantage of opportunities in the stock market without involving in any paperwork.

A demat account serves as an online repository for investors and holds financial assets securely. The SEBI (Securities Exchange Board of India) monitors each transaction for debit or credit of securities. Therefore, individuals can invest conveniently online using a demat account and trust the investing process.

Prior to the dematerialisation of securities, investors had to deal with securities in physical format in ground-based stock exchanges. Offline trading systems carried various risks associated with physical securities, like, loss, damage, theft, forgery, delays, etc. Demat account has eliminated such risks.

In a single demat account, investors can hold multiple securities in the financial market. It can be shares, bonds, mutual fund units, IPO (Initial Public Offering) shares, government securities, derivatives, commodities, currencies, insurance policies, and many others. One can even hold unlisted shares bought in the OTC (Over-the-counter) market in the demat account. No demat account means no way to enter the financial market.

Opening a demat account is convenient following a digital process at the SEBI-registered stock broker's official website. It is a fast process with e-KYC. Open a demat account with a discount broker to avail of numerous demat account benefits at a reduced cost.

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