ONE STOP SOLUTION FOR CONVERTING PHYSICAL HOLDING INTO E-FORMAT—THE DEMAT ACCOUNT
Online trading is gaining more momentum in the coming years. Stock markets and financial companies are not away from the changes.
A unique process where in the physical shares and the certificates held by the investors are transferred to electronic form and credited to investors account is known as Dematerialization Account (Demat Account).
Moneymindz is offering valuable financial advice to customers in India relating to Demat account.
Ways to Open Demat Account In India:
Steps taken to open a Demat Account in India are as follows:
ØOne must take the help of Depository Participant (DP), these are people authorized to offer Demat services on behalf of banks, financial institutions.
ØYou must fill up the account opening form.
ØXerox of documents like Aadhar Card, Pan Card, Passport, Driving license and others.
ØSubmit the form with above mentioned documents.
ØSign an agreement with the Depository Participant giving all details of investor and DP.
ØDepository Participant opens account and provides Demat Account Number (DAN).
ØDemat Account is created and will have a unique identification number.
Greatest Features Of Demat Account:
Some of the interesting features of the Demat Account are given below as follows:
Share Transfer: You need to fill up Delivery Instruction Slip (DIS), in order to buy and sell securities in India. To be honest, you can compare DIS to a cheque book in a bank.
Substitute For Loans: A Demat account is the best substitute for the loans. Investor will take loan against the shares, bonds, debentures and the mutual funds.
Modes Of Access: There are various modes of access available for Demat Account. Furthermore, one can check your Demat Account using internet by smart phone, laptop, and personal computer.
Lower Cost: Using the e-format or the paperless format has played a major role in avoiding stamp duty and registration charges in India.
Safe And Secure: Most of the transactions are said to be very safe and play a major role in eliminating duplicate shares. Saves valuable time for the investor and makes your life easier.
Positive Aspects Of Demat Account:
ØPlay a major role in avoiding problems relating to delivery.
ØDemat form saves lot of time and money.
ØNo paperwork needed
ØTransactions done through depository participant and avoids any middlemen.
ØShares, bonuses generated due to mergers, consolidations are automatically credited in Demat account.
ØDestroys problems involved like data loss, theft, destruction of certificates, damages and others.
ØThere’s no restrictions on the number of transactions.
So do not allow financial terminologies to make you feel dejected. Enjoy Demat Account and make a difference in your life.
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