Why Open A Demat Account?

There are several benefits associated with the Demat system:

1. It is a safe and convenient way to hold securities.

2. It ensures immediate transfer of securities.

3. There is no stamp duty on transfer of securities.

4. Risks associated with physical certificates such as bad delivery, fake securities, delays, thefts, etc. are eliminated.

5. There is a major reduction in paperwork involved in transfer of securities, and reduction in transaction cost, etc.

6. No odd lot problem exists; even one share can be sold.

7. Change in address recorded with DP and gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately.

8. Transmission of securities is done by DP eliminating correspondence with companies.

9. Automatic credit into demat account of shares; arising out of bonus/split/consolidation/merger etc. can take place.

10. Holding investments in equity and debt instruments in a single demat account is possible.