A Demat account—short for dematerialised account—is an account that allows you to hold company shares and securities electronically.
You can hold dematerialised securities such as stocks, mutual funds,bonds, exchange-traded funds (ETFs), etc. in a demat account.
One of the biggest benefits of demat account for investors is that it is digital. Having said that, there are many other advantages of demat account that can be listed as follows.
1. Security of shares: The most important benefit of demat account is that it is safer than holding physical shares which can get lost, damaged, or stolen.
2. No for geryortheft Since the demat account is electronic in nature,the risk of documents getting stolen, damaged, orlost does not exist.
3. Seamless trading and transfer Unlike transporting physical certificates, demat accounts allow the transfer of share squickly and securely. This has lowered order processing times.
4. Lower cost Physical share certificate sattract paper work and stamp duty, which in creases costs. With ademat account, all this is eradicated and you can get a demat account in no time.
5. Multipl eaccess points A demat account is operate delectronically, which essentially meansthatusers can access the account from multiple touch points—mobile, tablet, PC, laptop,etc.
These are just some of the benefits of demat account and its uses. Read the full list of advantages and different uses of a demat account.
Here’s another benefit of demat account—one that you can get only with Kotak Securities