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1.Importance of the DEMAT account


Shares and securities are held electronically in a dematerialized account (or "Demat"), rather than the investor taking physical possession of certificates. A dematerialized account is opened by the investor while registering with an investment broker (or sub-broker). The dematerialized account number is quoted for all transactions that allow the electronic settlement of transactions. Each shareholder will have a dematerialized account in order to carry out stock transactions. Access to the dematerialized account requires an Internet password and a transaction password. Transfer or purchase of securities can be initiated. The purchases and sales of securities in the dematerialized account are made automatically once the transactions are confirmed and completed

2. Why DEMAT? 
• Physical records are being slowly replaced by their electronic forms in all walks of life. • The situation is no different when it comes to the field of investments, where it is extremely difficult to manage and maintain documents in their respective physical states. 
• The DEMAT account presents a simplified way in which investments or securities can be handled even by small investors in an effective way.

3. Why is DEMAT important for stocks? 

• The process of using the DEMAT account reduces 
the time it takes for a physical transaction, as there is a direct transfer of the purchased values to your account automatically. 
• This eliminates the burden or pressure to actually undertake several steps that must be taken in the ownership process of the investments.
• Once the DEMAT account contains security, there is no concern about having to safeguard physical documents and then submitting them to the authorities concerned at the time of sale.
4. What DEMAT gives you? 
• The importance of DEMAT accounts is that it transfers the balance of power to their hands by awarding the facility of choice to select the manner, mode and amount of investment. 
• Other factors become irrelevant because you can choose whether to buy one share or 1,000 shares.

5. What DEMAT gives you: 
• Similarly, you can choose to buy your entire requirement once or in 10 installments. This will ensure that your investment decisions are focused on achieving your goals or goals and are not influenced by administrative or process-related factors. 
• The greater the coverage of the instruments under the umbrella of the DEMAT account, the greater the convenience you will experience.

IMPORTANCE:
A demat account also helps to avoid problems typically associated with certificates of physical actions, for example: delivery failures caused by mismatched signatures, postal delays and loss of certificate during transit. In addition, it eliminates the risks associated with forgery and due to damaged stock certificates. Demat account holders also avoid the stamp duty (as opposed to 0.5 percent payable on physical stocks) and the filing of transfer deeds. Objective of the Demats system

India adopted the Demat Electronic Storage System, where stocks and securities are represented and maintained electronically, eliminating the problems associated with paper stock. After the introduction of the deposit system by the Depositary Law of 1996, the process of sales, purchases and transfers of shares became much easier and most of the risks associated with paper certificates were mitigated.

The benefits of demat are listed as follows:
Easy and convenient way to maintain values
Immediate transfer of securities
No stamp duty on the transfer of securities
More secure than papers (past risks associated with physical certificates
Such as poor delivery, false values, delays, theft, etc. Are mostly eliminated) Reduction of paperwork for the transfer of securities

Reduced transaction cost
There is no "odd lot" problem: even an action can be sold

The change in the address registered with a DP is recorded with all the companies in which the investor supports the securities eliminating the need to correspond with each of them separately. The transfer of securities is done by the DP, eliminating the need to notify companies. Automatic credit in the demat account for shares arising from bonus / split, consolidation / merger, etc. A single Demat account can have equity and debt equity investments. Operators can work from anywhere (for example, even from home).

At present, it is mandatory to liquidate all transactions carried out on any Stock Market in DEMAT form only. Although investors have an alternative to hold securities and liquidate transactions of up to 500 shares in physical form, they need a DEMAT account, since in practice almost all transactions on the exchanges are being settled in DEMAT only.
In India, stocks and securities are held electronically in a dematerialized account (or "Demat"), rather than the investor taking physical possession of certificates. A Demat account is opened by the investor while registering with an investment broker (or a sub-broker). The dematerialized account number is quoted for all transactions that allow the electronic settlement of transactions. Each shareholder will have a dematerialized account in order to
Access to the dematerialised account requires an Internet password and a transaction password. Transfer or purchase of securities can be initiated. Purchases and sales of securities in the dematerialized account are made automatically once the transactions have been confirmed and completed. The Demat account is like an account in a bank. All money used in shares are taken from this account.

Advantages of demat

• The bonus / right shares assigned to the investor will be immediately credited to your account. There is no risk due to losses due to fire, theft or mutilation. Transaction costs are usually lower than the physical segment.
• A demat account also helps avoid problems typically associated with physical stock certificates.
For example: delivery failures caused by mismatch of signatures, postal delays and loss of certificate during transit. In addition, it eliminates the risks associated with forgery and due to damaged stock certificates.
• Demat account holders also avoid the stamp duty (as opposed to 0.5 percent payable on physical stocks) and the filing of transfer deeds.
• The biggest advantage of having demat account is that you do not have to pay the stamp since these are stored electronically that reduce the transaction cost.

Demat Benefits

Demat account of shares and securities for commercial purposes
The benefits of demat are as follows:
• Easy and convenient way of maintaining values
• Immediate transfer of securities
• No stamp duty on the transfer of securities
• More secure than papers (previous risks associated with physical certificates such as poor delivery, false values, delays, theft, etc. are mostly eliminated)
• Reduction of paperwork for the transfer of securities
• Reduced transaction cost
• No "odd batch" problem: even an action can be sold
• The change in registered address with a Depositary Participant (DP) is recorded with all companies in which the investor maintains securities, eliminating the need to correspond with each of them separately.
• The transfer of securities is carried out by the DP, eliminating the need to notify companies.
• Automatic credit in demat account for shares arising from bonus / split, consolidation / merger, etc.
• A single demat account may have investments in both equity and debt instruments.
• Operators can work from anywhere (for example, even from home).