Are you thinking to open your Demat Account? If yes then you need to take a look at the ultimate guide of Demat Account 2020 Updated because this guide helps you to know about the exact definition of Demat Account, Benefits, Features, Uses and Importance of Demat Account.
Simple Definition of Demat Account:
One, who wants to hold the share of want to do the transaction in the share market should have Demat Account or in other words, to become the owner of the share of securities in the electronic format once must have the access of Demat account, otherwise, he or she can’t hold the share in the market or can’t sell or buy the share in the market.
Actual Purpose of Opening Demat Account:
Converting Physical Shares into Electronic Forms is the main purpose of opening a Demat Account for any individual. Therefore, we can say that Demat Account is mainly responsible for share trading easier, faster and safer way for the shareholders. There are so many benefits of Demat Account for a person in the online trading.
Is Demat Account Paid In India?
Well, in India the service of Demat Account is Cost-Free for the shareholders offered by depositories such as CDSL and NSDL through intermediaries / Depository Participant / Stock Broker such as Angel Broking. However, the Demat Account Charges are varying according to the securities held in the account, terms and conditions agreed by the depository and the stockbroker and type subscribed of service.
What Facility Demat Account Provide to Shareholders?
With the opening of the Demat account, you will eligible to trade on the online platform for the holding, selling and buying securities. As we know, a Demat Account makes your trading easier and faster. Demat Account holders can also invest in a share of government securities, bonds, and mutual funds as well in one account.
Demat Account App:
Nowadays, every broker provides access to Demat Account App to the stockholders. In this app, shareholders can view the total security hold by them, statement of share sell and purchased. Another feature of the Demat Account is transferring money to banks. Yes, few apps also provide the facility to transfer Demat Account Wallet Money to bank easily. Bank to Demat Transfer is also possible for you in the same app. That means, shareholders do not need to visit on the broker place and they can simply do the things and real-time trading in the Share Market through the app of the broker.
How to Convert Physical Share Certificates Into Electronic Forms?
Transfer or Convert Physical Share into Electronic Form is done by the process of Dematerialisation. Yes, this is the term which is known for the method of converting the physical share certificates into electronic form. To trade online and invest in the share market online an investor required to open a Demat Account with a Depository Participant.