15 Key Advantages of a Demat Account are:-
1. Easy Share Transfers: No Stamp duty require while transferring your financial securities. A prompt and quick transfer of shares is held which reduce the huge cost and time for investor.
2. Removal of ‘Poor Deliveries’.
3. End danger by misfortune, risk, loss, theft, burglary, or mutilation by holding your securities in the Demat account.
4. Ending of discrepancy of Bank Accounts and Addresses.
5. Advantageous Nomination facilities.
6. Advantageous Transmission customs if there should arise an occurrence of death of a holder.
7. No TDS deduction for Demat securities.
8. Demat account data and proclamation consistently sent to the customer.
9. Liquidity of shares: Demat is quicker, more advantageous, and, simplified to get cash on selling shares.
10. Get Stock dividends and benefits – All Auto-credit your dividends, interest, and refunds quickly through your Demat account. It is highly advantageous when it comes to updating traders’ accounts with stock splits, bonus issues, rights, public issues, etc. through electronic clearing service (ECS). Quicker settlement and dispensing of corporate advantages like bonuses, Rights, Dividends, and so on.
11. Internationalization India – Demat Accounts have a huge influence in giving foreign investors a simple approach to the Indian stock exchange. Furthermore, ascending in foreign cash in the securities exchange has helped the general Indian economy thus.
12. Simple access: A Demat Account can give speedy and simple access to your investments and statements through net banking. Additionally, these details can be accessible to you anyplace – Laptop, mobile, tablet, or other savvy gadgets.
13. Simple dematerialization of securities: If a financial investor holds certificates physically, he or she is just required to guide the depository participant (DP) to change over them in an electronic format.
14. Loan Against Securities – These securities become investors’ assets so an investor can take a loan on his securities as well.
15. Freezing Demat Account: Demat account holder can also select the option to freeze his Demat account for a certain period and can freeze his selective or quantity of securities in a Demat account.