Advantages of having a Demat Account
Benefits of having a Demat account: It provides safety from fraud, forgery, and impersonation, It facilitates faster settlement, multiple securities in a single account
In the earlier time, buying and selling shares was not an easy process. Earlier it was required to be done through a broker by contacting either through phone call or request through the post. Stocks used to be held in physical form and there were always the chances of theft, forgery, fraud, etc. But now with the help of a Demat account, everything has changed.
Now there is no need to hold shares in physical form and also there is no possibility of theft, forgery, and fraud. You can conveniently buy and sell your shares without any involvement of a broker. Buying and selling shares is no longer a time-consuming process. Demat account has brought many drastic changes in the process of buying and selling shares. There are many benefits of having a Demat account, instead of holding your shares in physical form.
Benefits of having a Demat account:
The points given below are the benefits of having a Demat account:
It provides safety from fraud, forgery, and impersonation:
Earlier, when stocks used to be held in physical form, there were always cases of forgery, fraud, and impersonation. People used to get stocks transferred in their name through forgery and fraud. But as far as the Demat account has been introduced, all such chances of fraud have been removed. You can buy and sell shares.
No other person without your authorization won’t be allowed to deal or transact with your shares. There is no need to worry anymore about the risks related to fraud, forgery, and impersonation.
It facilitates faster settlement:
In the case of a Demat account, you are just one click away from buying and selling a share. With just one click, you can buy and sell stocks. As soon as you have bought a stock, the ownership will be transferred in your name immediately and as soon as you have sold the stock, you will get money in your Demat wallet. Earlier, when Demat accounts were not being used, the minimum processing time was T+2 days, which means the day on which you make the transaction and further two days were required to process the time. More transaction time could expose the transaction to different fraud possibilities. But in the case of an account, there is no such problem.
You can hold multiple securities in a single account:
You may or may not know about this but if you have an account, you can deal in different securities through that account. In simple words, you won’t be requiring different accounts to deal with different securities. One Demat account shall be sufficient. Along with this, you can easily track the performance of your shares.
These are the benefits of having a Demat account. However, in addition to the benefits mentioned above, you can also avail of loan facilities on an account. If you want to know the complete instructions and steps to open an account, you can make a visit to the 5paisa site and know about such things. You can also know about the features of a Demat account on this site.