conclusion on informative report of demat account

Dematerialized account number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting. Access to the Dematerialized account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the Dematerialized account are automatically made once transactions are confirmed and completed.

Similar to a Bank account which holds your Money, Deposits etc, A Demat account or an online demat account is the account which holds Shares, bonds, government securities, mutual funds and exchange traded funds (ETFs). In simple terms, a demat account is a must have and first step for transacting in the share market.

In 1875 at BSE, Stocks were traded in the “Ring”, Traders shouted their prices to buy or sell; once the trade was executed, money was exchanged for share certificates. Settlements took a lot of time because of huge amount of paper work involved in manually keeping a track of shares sold/bought and later settlement of these transactions. Thanks to technology we moved to a digital age and everything turned electronic. In 1996 Demat accounts were introduced and after dematerialization process all physical share certificates were converted in to electronic form and the same deposited in to Share holders Demat Account.

What are the Benefits of a Demat Account?
Demat Account has made life a lot simpler bringing in paper less transactions avoiding all manual processes. There are many benefits to Dematerialization process

1) Common account – Does not matter you have multiple bank accounts and trading accounts, your single Demat account details are with all participants and all your Bonds, Investment Instruments , Shares are deposited in your common Demat account

2) Auto Update – Your Demat account details are automatically shared with third parties, you need not keep submitting your Demat account details everywhere you transact in shares, bonds or mutual funds

3) Lower cost – Paperless transaction has cut down cost drastically also avoiding stamp duty and registration compared to previous Trades executed manually

4) Safe and Secure – Demat account transactions are safe and secured; also it avoids fraud by eliminating the chances of receiving duplicate shares, Theft, Wrong deliveries. Because of paper less transactions it has also reduced the time frame of deliveries.