What is a Demat account?
A Demat account is a short form of a Dematerialized account that allows you to hold your securities in a dematerialized form, in simple words, in paper-less form. It is an electronic platform on which you can deal in all types of securities like shares, debentures, bonds, mutual funds, etc. Nowadays these platforms even let you hold gold in an electronic form. There is not much difference between a bank account and a Demat account. In a bank account, you hold your money in various types of accounts. But in a Demat account, in addition to holding your money, you will also be holding your investments. But in both cases, whether money or securities both are held in a paperless form. If you are already an investor or want to start investing or to deal in the stock market then you are required to have a Demat account.
No paperwork will be required in this account to deal in securities. Every transaction will take place instantly. If you already have a Demat account then you would already know about its amazing features and if you do not have such an account but want to know about its features and open it then you need to continue reading this article.
Through the points given below, you will get to know about the amazing features of a Demat account:
- You can easily transfer your shares: One of the amazing features of this account. Is that there will be no difficulty that you will be facing while transferring your shares. This account has made, dealing in shares, just a matter of clicks. If you want to buy shares. You just need to click on the buy button and if you want to sell your shares. Then you just need to click on the sell button. One single click will make debit and credit of shares in your account. Furthermore, even if you want to transfer your securities from one account to another account. There is nothing extra that you will have to do. It will be done very easily through receipt instruction slip and delivery instruction slip. With the help of these slips, you will be able to carry out transferring transactions very easily.
- You can freeze your Demat account: Another amazing feature of a Demat account is that now you can also freeze your account. In simple words, you can stop the buy and sell of stocks from your account. For example, you are holding some stocks and you do not want to sell them or buy new ones. You can freeze your account for as long as you want.
- Instant access to your securities: Another amazing feature of this account is that you can have instant access to all your investments. It means, as soon as you have bought a stock, you are the owner of it and deal with it in any manner.
These are a few features of a Demat account. However, these features are not limited, 5paisa provides a detailed explanation of the features of a Demat account.
