Understanding the Pros of Opening a Dematerialisation Account in India

You must be familiar with the use cases of a trading account. An investment or trading account allows us to buy or sell financial instruments like stocks, commodities, derivatives, and mutual funds. However, a trading account is not concerned with holding securities for a given period. For example, investors hold shares for months and years to sell at the right price. In such a case, investors will need a Demat account to hold securities. Demat account benefits also include the safety of securities. Your securities aren’t vulnerable to theft and damage when stored in a Demat account.

A Demat account is essential for online trading in India. Before the launch of the Demat account, investors were forced to store physical copies of their trades. When they had to sell their securities, they used physical copies. Demat accounts removed the need for physical copies, as they store securities in digital format. You can easily apply for a new Demat account with a trusted stockbroker or depository participant in India. To open a Demat account for free, you can rely on Religare Broking. Here are the pros of applying for a new Demat account in India:

Multiple Choices

There are different types of Demat accounts, and you can choose one according to your needs. Most investors go with a regular Demat account to enjoy all the benefits. One can apply for a BSDA (Basic Services Demat Account) for small-scale investments and fewer maintenance charges. Repatriable and non-repatriable Demat accounts are also available for NRIs (Non-Resident Indians) wishing to invest in the financial markets of India. You must research the Demat account types before choosing one in India.

Easy Dematerialisation

Demat account can convert your physical securities in electronic format in quick succession. When securities are converted into digital format, they are easily stored. Securities bought via the trading account are automatically converted into electronic securities. For automatic conversion of securities into digital format, both trading and Demat accounts must be linked. If you have some physical securities from before, you can submit a request for dematerialisation with the broker or depository participant.

Safety

Online trading in India can become safer with a Demat account. Since your securities are stored securely in a Demat account, they cannot get lost or damaged. Also, there are fewer chances of misplacing the securities stored in a Demat account. The same cannot be said for physical certificates of securities. Investors can choose Religare Broking for a secure Demat account with password protection.

Earn Dividends

Did you know that many companies offer dividend income to their shareholders at regular intervals? Dividends are a part of the profit made by the company. When you hold shares for an extended period, you become eligible for dividends. A Demat account allows you to hold shares and become eligible for dividends.

Portfolio Monitoring

You can view all your holdings at once via a Demat account. It will allow you to monitor the portfolio at all times and make informed investment decisions. You can prepare exit strategies and sell assets at the right time.

In a Nutshell

Are you familiar with the types of trading in share market? If you are ready, it is time to apply for a Demat account. A Demat account is essential for holding instruments for a given time in India. Apply for a Demat account with Religare now! 

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