If you are a trader, Demat Account should not be new to you at all. This is so especially if you are a member of the Angel Broking, the largest retail broking house in India. The first thing you need to know about a Demat Account is that everything is held electronically. This means that all the shares and securities are held electronically and the investor will not take the physical position of certificates. You will open this account at the time you are ready to register with an investment broker here in India.
Once you open a demand account, you will receive an account number, which is coded for all the transactions. This will enable electronic settlements of trade to take place. The main purpose of a demat account is to trade shares. You will need an internet password and a demat account password to be able to perform a transaction on your demand account. You can never initiate the transfer or purchase of securities if you do not have an internet password and a demat account password.
India adapted this system purposely for electronic storing. Here, all shares and securities would be maintained and managed electronically. It would be a great technology that would help to solve a number of problem as well as help traders and investors enjoy the merits of electronic transactions and trading of shares. It would completely eliminate the problem associated with the people shares.
The advantages of Demat Account:
You are able to avoid problems associated with physical share of certificates. In physical share, there may be delivery failure caused by signal mismatch and delays or loss of certificates . This is solved by having a demat account.
A demat accounts helps to eliminate forgeries.
If you have a demat account, you will not have to pay any stamp duties on your physical shares.
Once you open a demand account, you will receive an account number, which is coded for all the transactions. This will enable electronic settlements of trade to take place. The main purpose of a demat account is to trade shares. You will need an internet password and a demat account password to be able to perform a transaction on your demand account. You can never initiate the transfer or purchase of securities if you do not have an internet password and a demat account password.
India adapted this system purposely for electronic storing. Here, all shares and securities would be maintained and managed electronically. It would be a great technology that would help to solve a number of problem as well as help traders and investors enjoy the merits of electronic transactions and trading of shares. It would completely eliminate the problem associated with the people shares.
The advantages of Demat Account:
You are able to avoid problems associated with physical share of certificates. In physical share, there may be delivery failure caused by signal mismatch and delays or loss of certificates . This is solved by having a demat account.
A demat accounts helps to eliminate forgeries.
If you have a demat account, you will not have to pay any stamp duties on your physical shares.
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