Since 1996, ever since the concept of demat account was introduced it has changed the landscape of trading. Before this the shares or securities were kept in physical form and were traded. At this juncture the traders had to undergo a lot of hassles in order to keep the shares safe from theft or any damage. Even the possibility of robbery could occur and safeguarding the shares was a really difficult task.
With the introduction of demat account it was a blessing in disguise for the traders and the volume of stocks enhanced considerably. The main benefit of a free demats account in India for the traders and clients is that they are able to hold shares in electronic form and not the physical route. This does ensure that the process of trading, holding and monitoring shares or securities is convenient, cost efficient and hassle free. In fact there are various benefits of a demat account and let us get to the details as follows
In holding physical securities there is a risk of loss in terms of theft, damage or robbery. When you operate a demat account such risk is completely eliminated as there is no possibility of the certificates being forged or stolen as they would be stored in electronic form. When it is the case of a demat account you cut down the risk on bad deliveries and fake securities.
As there are no traces of physical securities being involved, the demat account is devoid of additional charges like stamp duty, or be it handling charges or any other type of expenses. This ensures that the overall cost for an investor is reduced, and ensures that the account is cost efficient
When you are operating a demat account it completely reduces the possibility of paperwork ensuring that a transaction is completed a lot earlier than before in the earlier days. This saved time ensures that the investor is able to buy and sell securities in such a short span of time with a great deal of efficiency
A demat account in combination with online trading and internet trading ensures that the entire process of trading is a seamless procedure. The entire dealing of transactions takes place in a fast and quick manner. The moment you purchase shares in a demat account your account is automatically debited and once you sell shares the opposite occurs.
All transactions operate with a single account
By demat account there is a facility where you can hold all your accounts via a single platform. Gone are the days where you needed a separate account for bond, tax free instruments. All of your accounts can be held at a single place. Even it becomes easy to track down the performance of your portfolio.
Before the emergence of demat accounts investors were not able to buy or sell shares in single lots. Ever since such accounts have come into existence this has gone on to solve the problem to a considerable extent.