It is clear that technology has brought about an amazing change in the daily lives of people. Even the stock markets have not been left uninfected by the dynamic alterations. In 1875, the Bombay Stock Exchange was formed with an open uproar platform trading exchange. In case you know or heard of, traders were in a habit of standing on floor therein and shout the prices of stocks for purchasing or selling.
After it was done, money used to be exchanged for the physical receipts of all the shares that are known as the certificate. It is something that headed to a massive amount of paperwork. Even the payments of all the trade agreements experienced some time because of need to offer share certificates. Then in the year 1996, dematerialization was fascinated. Speaking of dematerialization, it is the process via which physical share certificates detained by an investor is transformed into an equal number of securities in the electronic shape and then it gets credited into the demat account of the investor. Of course, you can look for the Best Demat Account for yourself.
Presently anyone can avail a Demat Account for all their stocks and shares. These accounts got introduced in the nation in the year 1996. Prior to these shares and securities were delivered physically and traded. These securities are now conveniently available to hold electronically via these demat accounts. These accounts make the whole procedure of investing, monitoring, gripping a trade, convenient, swift and absolutely cost efficient. You can find individuals having accounts and managing their shares and everything.
What features these accounts have?
There are different types of features found in these accounts and some of these are like:
Easy Share Transfers
Investors can conveniently transfer their holdings through a delivery instruction slip (DIS) or even the receipt instruction slip (RIS) for buying or vending shares. These are the slips that allow the users to offer all the particulars that are required for executing a transaction in an effective manner.
Swift Dematerialization & Re-materialization of Securities
The account holders can conveniently provide instructions to their depository participant (DP) to transform the physical certificates into the electronic format. In the same way, electronic securities can also get transformed to physical shape, if the need be.
It might also catch your interest that the account holders can also freeze their accounts for a particular period. It is only as per the requirements of the account holder. It is the option that can be advantageous only if a person wishes to prevent unexpected credit or debit into the Demat account. Added perk is that the freezing option is also there for a specific quantity of securities held in the account.
Amazing facility to gain loan
There are many lenders out there who cater loans against securities that are gripped in the Demat account of the borrowers. These holdings are clearly used as security to get loans by the account holders.
So, you can pick a demat account that is as per your need and caters you the features you require.