Demat Account Benefits for Stock Trading – Axis Direct
Mar 01, 2018 | Source: Indian Stock Market
If you are interested to buy and sell shares of different companies in India, it is important that you open a Demat account. For the investors who already exist in the stock markets and for those who are new in this sphere, need to open this account of Demat for further procedures related to stock markets. Following are the several benefits of a Demat account:
1.No threat of forging:
Just because the shares are preserved in electronic forms, the shares can be kept safe. The shares cannot get stolen and hence with a Demat account you can easily keep the shares out of danger as they are not saved in physical format.
2.Easy share transfer:
Shares can be transferred easily through a Demat account and are not the same as before. Earlier it was necessary to send the shares to the registrar and at times to the company in order to transfer the shares, but the risk was involved in the process.
3.Security transfers do not require stamp duty:
Indian stock market these days have made the purchasing and selling of shares easier. As tax for security transactions are paid, hence there is no need to physically buy and paste the stamps on the certificates.
4.Convenience of selling one share:
Live stock market would always provide you with the important information on the rising and falling value of the shares from different companies. Accordingly, you can act and can sell even a single share which was not possible earlier as people were not able to sell shares in odd lots like 33 or 55 shares.
5.Nominating individuals is now possible:
These days it is possible to nominate individual while you think of opening a Demat account. Formerly, there was no such option as you were required to get the certificates by keeping joint holders for the same.
6.Single account operation:
Now with the operation which can be done from a single account, you can easily buy various forms of bonds, NCDs as well as bonds that are tax-free. There are other instruments that can be held in a single account apart from the company fixed deposits and some debt tools.
7.More returns than any other form of savings:
With the opening of the Demat account, there is this facility of getting more returns from the shares. In general, fixed deposits and another form of savings, though you will not have to take any risks, you will not gain as much as you can like those investments that are made in share markets.
8.Easy following of information:
With the account that you have, you can enter the world of stock market and will be able to get the required information from time to time as it will keep on updating your account.
With a Demat account, you can easily gain the advantages of the share market and thereby can avail the facility of purchasing and selling of shares easily. This will even help you to keep your transactions safe and secured.