Demat Trading In India

What is a Demat Account?

What is a Demat Account?

Demat or the dematerialised account is essential for Indian individuals to trade in listed stocks or debentures. According to the Securities Exchange Board of India (SEBI) guidelines one is required to maintain a Demat account where shares and securities are held in electronic form. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). In short it is a simpler and hassle free way of trading online.

Advantages of Demat account

Demat account is a safe and convenient way to hold securities. Not only does the account enable immediate transfer of securities one also does not need to pay any stamp duty on transfer. Since a demat account holds securities online it also eliminates the risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. Moreover it cuts down the paperwork involved in transfer of securities as well as brings down the transaction costs. Additionally, wile using the demat account one does not face the problem of odd lots as you can sell even a single share. The account also provides the facility of nomination.

A demat account holder has shares automatically credited to the account in the event of a bonus/ split/ consolidation/ merger etc. additionally, one can hold investments in equity and debt instruments in a single account.

Why I need a Demat Account

Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, traders no longer wish to hold physical shares. Hence, a demat account is a must for trading and investing.

The author is Business Editor. Visit at www.religareonline.com.To read more such stories like Online Demat Trading , Online Share Trading and Online Demat Account

by: Anjali Shukla

POST COMMENT

Low cost Bariatric Surgery in India for obese people with amazing cost saving for International Patients Low cost Knee replacement Surgery in India for older aged patients suffering from arthritis Low cost Cosmetic Surgery in India with a lot of savings and providing desired results for Patients Php Developer In India A Good Career Option Sending Rakhi Gifts To India From Usa Know The Emotions And Importance Of Sending Rakhi Gifts To India Buy international magazines india The Temple City Of South India Chris Devonshire-Ellis: Why India Trumps China Micromax to launch Modu-T in India with Rs.12500/- Akai Slimz launched in India Inland Waterways - India's Green Highways India Vs Bangladesh - The Long Awaited Battle Now Live