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What is a Demat Account? August 04 2017Stock Market Trading

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What is a Demat Account?

The functioning of stock markets has changed drastically after the introduction of technology. Long ago, the Bombay Stock Exchange use to run on floor trading system. With technological advancements, the system has completely changed. The amount of paper work has reduced significantly leading to no time wastage to issue share certificates to the shareholders.  Instead, the shares are now issued to the shareholders in electronic form via the demat account. In this article, we shall understand the meaning of demat account and understand its concept.

What is Demat Account?

Demat account is an account in which the dematerialised securities are stored and held. Dematerialisation is the process of conversion of physical shares certificates into electronic form.  In simple words, holding of securities in electronic form is possible through a demat account or dematerialised account. Every investor is allotted a separate unique id with their broker under which their securities can be held.

Let us have a look at the benefits of demat account.

Benefits of Demat Account

Demat account has the following benefit:

·      It leads to automatic updation of the transactions with the company. Therefore, it eliminates the need to give details like address again and again for different transactions.

·        It saves cost, as no stamp duty needs to be paid. Earlier, stamp duty was charged on every security transfer.

·        Maintaining and managing securities in the demat account is much easier than holding them in paper form like share certificate.

·      The problem of odd lots that existed earlier is no more there. Now shares can be transacted in any odd lot numbers as per the desire of the investor.

·   The delivery risks like forge shares, theft of share certificates, wrong deliveries have been eliminated with the introduction of demat account. Once a trade is executed, it is automatically reflected in the demat account.

·     Demat account is not only meant for shares. Other instruments like bonds, etc. can also be held in a single demat account.

Technological advancements have had a positive impact on the stock markets.  Now the transaction in securities can be done with just a single click. There are many brokerage houses in the market with whom demat account can be opened.

Indira Securities is one of the top most financial service providers. By opening a demat account with us, you get the facilities to trade and invest in stock markets at low brokerage rates. We guide our clients in the IPO application process. You can trade using our mobile application. We provide regular stock recommendations to the clients using stock analysis tools. To open a demat account with us or for any query, reach us via call or email.

 

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Manoj Bhandari. Email: complaint@indiratrade.com. Call : 0731-4797275