A Demat account (Short form of dematerialized account) is an account through which every creature documents are converted into electronic documents. In order to entrance a Demat account, you habit to have the internet along considering the username and password of the account.
• Benefits of Demat system
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• This is an easy and most convenient habit to deposit all securities and shares for a longer period.It is considered to be safer than the paper documents as they are prone to any damage or theft or any misuse. That is why companies prefer dematerialization of invoices (dématérialisation des factures) as it can be saved for a long period.
• If you need to transfer your securities, less paperwork is needed.
• The transaction cost is also reduced compared to the physical document transaction cost.
• A single Demat account can hold both equity and debt shares in it
• The traders can work anywhere online as all the securities and shares are available in their Demat account and they can use that account anywhere in the world.
encouragement to the company
The depository system will cut the cost for the transaction and the company can have an in force cost-cutting process though carrying out the process through a Demat account. It provides fine communication and timely services to every shareholders and investors.
Benefits to investors
The speculator is secure from the risk of holding the being security documents as they craving to preserve the document upon their own risk for a long time. The delivery problems due to signature issues can be minimized behind the electronic transfer. No stamp adherence is paid on any transfer of shares.