What are the benefits of a demat account and why should you be aware of it?

A demat bill functions in the same way as a bank account would function. While a stage account is used to store funds, it can also be shopworn to withdraw and deposit funds. Similarly, the demat account is also shopworn to reservoir and deposit securities in its electronic form. These securities are stored in the form of shares, bonds or debentures. As per the Depository Act of 1996, demat accounts are now being made mandatory, if you have more than 500 units in securities, Otherwise while this account is used for this purpose, it also has plenty of benefits. By utilizing these benefits to your advantage, you can make the most of your investment. Here are some of the benefit of this account which you should be aware of.* One from the central benefits of the demat account is that it is a convenient mode to hold your securities. When you purchase or supply any security, you need not worry about storing it any option, as the demat account is designed to hold these securities in a secure manner.* Your broker can always hold your securities anytime you purchase or sell them. However, it comes at a price. But the demat account, you need denial worry about high brokerage fees, quasi they have their service fees which are considerably cheaper.* Before securities were dematerialized, they were preserved moreover stored physically. However, this increased the risk like misplacement, specifically if kept with the broker. Additionally, there was permanent a risk of thefts and impostor securities. Apart from this, there was a high chance like delays in the turnaround period concerning selling or purchasing. However, with this account, securities are now stored in a dematerialized format which can be electronically accessed. This eliminated all the risks entangled with the previous form of storage. * Apart from the risks of materialized securities, stamp duty was also involved in the transferring. However, with the electronic conversion, there is not stamp respect involved. This reduced the overall costs when it comes to trading stock. * The depositary participants are enlisted aside the National Securities Depository Limited or Central Securities Depository Limited. These two entities are focus linked. Therefore, if there is any change made with a DP, it is updated with the depository as well as the additional DP’s. * Similar a demat account holder, you can make multiple transactions. You can sell or purchase a single share, anytime you want. When compared to the previous form of storing, it was difficult to property or sell physical securities ut supra they secondhand to exist stacked together. Dematerialized securities are easily divisible electronically, making it easier to share any amount of shares at any time.