Trading in the Indian stock market is a fascinating thought to many aspiring investors who have been trying different options. Well if you have been nurturing the same idea, you should not hesitate from making the first move. Gone are the days when stock market trading intimidated many investors given the risks that it laid down. Yes, during the days of offline trading, the stock market faced a lot of criticism from the investors as many had to suffer through the inconveniences that came with it.
From the loss and theft of share certificates to the risk of fake or forged ones, there was a lot of chaos in the market until the NSDL (National Securities Depository Limited) stepped-in to help. This intervention made people know what is Demat Account and how it can help their cause.
You can now effortlessly participate in the stock exchanges, transfer, purchase or sell your share certificates, store them safely, and enjoy many more benefits by understanding what is Demat Account. Find the best Depository Participant available near you and consult its customer service department to know more. With the best Demat Account and trading account at your service, you will enjoy a seamless trading experience without having to burn a hole in your pocket!
Know what is Demat Account, open it, and log into it to avail the best trading facilities.
Ways In Which Demat Accounts Make Trading Better
There are many ways in which knowing what is Demat Account can help you uplift your trading experience. While most of the services depend upon the Depository Participant, you can understand the functioning of the account to use it to your maximum benefit. A well-informed trader is always ahead of the ones who consume what is served.
Allows Electronic Storage of Shareholdings
The primary service or purpose of the Demat Account is to facilitate dematerialisation of shareholding certificates for convenient electronic storage. You will be able to hold your shareholdings in the electronic form. This service will spare you from the need for filing the certificates, spending on stationery, and putting in the effort to organise them serially. You can channelise the time you will save from all these activities in finding the best trading deals in the market.
Enables Fastest Transfer of Share Certificates
Understanding what is Demat Account will enable you to transfer all your share certificates electronically using the dedicated online portals. The Demat Account will save you from the hectic task of rushing to the post office every time you sell a shareholding. Transfer your shareholdings to your friends, trading partners, and family members or buyers in a matter of a few minutes.
Facilitates Conversion of Mutual Fund Units
The ones who know what is Demat Account also know that it is a multifunctional account. That is, you can not only convert your shares and securities certificates but also the mutual fund units. You can also reconvert them into their original form using the Restatementisation method, or send it to the Fund owner using the redemption method.
Offers The Safe-Lock Facility
The safe-lock facility, commonly known as the “freeze account” assistance is one of the most beneficial services that you will enjoy. Using this service, you can freeze your account during the time of inactivity. This action will keep your shareholdings in the safest state.
Derives Data Directly After Every Transaction
You will need a trading account after finding out what is Demat Account given the former is mandatory for participating in the stock exchanges. Earlier, traders had to wait for the courier of the stock exchanges to receive their share certificates. Now, you can get it in your Demat Account directly within 48 hours of purchase.
Serves As Loan Collateral
You can use the Demat Account to avail of personal loans from banks. This facility will help you invest more and get immediate funds in case you need a backup for a profitable deal. Enjoy trading without the hesitation of being low on funds!
Provides The Speed-e-Facility
The speed-e-facility means the online services that the NSDL offers to Demat Account holders for transferring and selling share certificates. Using these facilities, you can enjoy uninterrupted services and seamless trading. Use your Demat Account to most of your benefits, and you can trade without the fear of losing your chances.
Gives A Review on Trading Portfolio
The trading portfolio is the most vital document that will help you make profitable decisions and review your past trading performances effectively. Your Depository Participant will provide you with this service of monthly or weekly trading portfolio.
You will get access to all these amazing services and facilities that are rough for offering you the best trading experience in the stock market. However, the experience that you will have from these services will depend upon the Depository Participant you will choose. So, keep the prevailing myths at stake and use your analytical knowledge to judge the best one for you!