This is why you need a Demat Account!

Today, you hold your shares in electronic format in a demat account. Gone are the days when you held a physical share certificate after buying a company’s stocks.

This is why a demat account is your ultimate tool when it comes to holding shares and securities easily and securely without worrying about paperwork.

Here is why you REALLY need a demat account!

1. You cannot buy or sell stocks without a demat account

2. You cannot invest in equity directly without it

3. Mandated by SEBI for transactions of listed company securities

So, what is a demat account?

Demat account—short for dematerialised account—allows you to hold company shares and securities electronically.

You can hold dematerialised securities such as stocks, mutual funds, bonds, exchange-traded funds (ETFs), etc. in a demat account.

So when you place an order to buy a stock, the shares get credited to your demat account. Similarly, when you choose to sell your shares, they get debited from your demat account.

You can choose to open just a demat account or a 3-in-1 account that links your trading and bank accounts too. Know more about these here.

This enables you to trade without the need to move physical share certificates. Not only is it a storehouse for your investments, but it also speeds up transactions and reduces costs. Of course, there are more benefits of demat account too. Let’s read that next.nd uses of a demat account.

What are the benefits of demat account?

One of the biggest benefits of demat account for investors is that it is digital. Having said that, there are many other advantages of demat account that can be listed as follows.

1. Security of shares: The most important benefit of demat account is that it is safer than holding physical shares which can get lost, damaged, or stolen.

2. No forgery or theft Since the demat account is electronic in nature, the risk of documents getting stolen, damaged, or lost does not exist.

3. Seamless trading and transfer Unlike transporting physical certificates, demat accounts allow the transfer of shares quickly and securely. This has lowered order processing times.

4. Lower cost Physical share certificates attract paperwork and stamp duty, which increases costs. With a demat account, all this is eradicated and you can get a demat account in no time.

5. Multiple access points A demat account is operated electronically, which essentially means that users can access the account from multiple touch points—mobile, tablet, PC, laptop, etc.

These are just some of the benefits of demat account and its uses. Read the full list of advantages and different uses of a demat account.

Here’s another benefit of demat account—one that you can get only with Kotak Securities.

With a 3-in-1 account, your trades can get more seamless since your bank and trading accounts are linked with the demat account! Know more here.