Open Demat Account to invest in share market
According to SEBI every trader has to open a demat account for trading in the stock market.
A demat account is the safest way to hold and transfer of securities electronically.
Demat Account Opening In IndiaIndian stock market has become very lucrative for its investors, and more of them are trying to increase their wealth in the stock market. You will need a demat account to start trading in the Indian stock trading market, and the demat account provider should be registered with a depository, according to the Securities Exchange Board of India, i.e. the SEBI.
A demat account holds your shares and other securities in an electronic form or dematerialized form. This dematerialization eliminates the risks involved in the case of physical share certificates.
Benefits & Features
Here are the benefits of a demat account:-
- Your shares are held in a secure electronic form.
- Electronic transfer of securities is faster and more reliable.
- No stamp duty for transfer of securities
- No risks of theft, fire or forgery as in case of physical shares
- Reduced paper work.
- Buying or selling of a single share is possible.
- Address change is to be notified only to a DP, which is connected to all the companies that you bought the shares with.
- Automatic release of dividends and credits .
Once you make your demat account, you are ready to start your journey as an online stock trader. There are online stock trading websites that give you the relevant information and online stock brokerage firms can help you make decisions regarding your investments. A share broker can be very helpful for a new investor, but it is very important to choose a reliable one.