To boost one’s asset building method one can buy shares and add them to the stock. With the enhancement of digital world, the buying and selling of shares have become the best method. Now with just the click of a mouse, one can buy and add stock to their portfolio and earn money from them.With this gone are the days when people use to save the share certificates in their folders in their physical forms. Now is the time when shares can be saved in the electronic form in the dematerialized account, popularly known as a Demat account. Here the word Demat stands for dematerialization.
Having a single Demat account can easily allow an investor to make multiple security transactions at the same time. Through an online trading account,one is enabled to buy and sell the shares, whereas, the Demat account is an instrument used to hold those securities. In the Demat account it is possible to hold a ZERO balance account as there is no compulsion of maintaining a specified minimum number of securities. Therefore, the best Demat account allows the investor to avail benefits from online stock trading easily.
How to open a Demat account- The process of opening a Demat account and starting the trading is very simple. For this one needs to select a reliable depository participant that can be a bank, broker or any financial intermediary. This participant should be registered with the NSDL i.e. National securities depository Limited and CSDL i.e. Central depository Services Ltd. After this the account opening formalities of the respected authority so selected is filled.
For having a trading Demat account opened, the account holder is required to submit some proof of address and identify which is mandatory. Even original Pan card is to be shown while opening the account. With all the documentation done the account gets ready for trading operations.
Benefits of holdind Demat account- Having investment in the form of digital securities is safe and convenient. There is no need to bother or keep the securities certificates in the locker. Not only this, transferring security is also very easy. One can have the benefit of bonus shares and split shares automatically. In some cases where the account holders want to get their address or phone numbers changed, with the digitization of securities, it has also become very easy and with the blink of an eye.
The Non-cash corporate entitlements like receiving any bonus and rights issue can also be directly credited to the Demat account.Through Demat account it has also made easy for the account holders to transferphysical securities into digital form and vice versa as per requirement.
These accounts are subject to some charges like the maintenance charges, which is levied even on fixed basis.
We have everything taking place in the virtual world. Holding a Demat account enables the holder to trade in shares in a very safe and secure manner where no risk of forgery, theft, misuse or destruction is there. These can also help the holder to access the details of account online anywhere anytime.