What are the benefits of opening a demat account?
• SEBI has made it compulsory for trades in almost all listed scrips to be settled in demat mode. • It is safe and convenient way to hold securities compared to holding securities in the physical form. • No stamp duty is levied on transfer of securities held in demat form • Instantaneous transfer of securities enhances liquidity i.e. fast settlement cycles. • It eliminates delays, thefts, and subsequent misuse of certificates. • Change of name, address, mandate, registration of power of attorney, transmission etc can be effected across companies by a single instruction to the DP. • Each share is a market lot for the purpose of transactions. • Any number of securities can be transferred/delivered with one instruction. Therefore paperwork and signing of multiple transfer deeds is done away with. • It facilitates taking advances against securities.
