It is apparent that technology has brought about an amazing change in the regular lives of people. Even the stock markets have not been left uninfected by the dynamic and advanced alterations. In 1875, the Bombay Stock Exchange was created with an open uproar platform trading exchange. In case you have an idea or heard of, traders were in a habit of standing on floor therein and yell the prices of stocks for buying or selling.
After it was done, money was used to be exchanged for the physical receipts of all the shares that are known as certificate. It is something that led to a massive amount of paperwork. Even the payments of all the trade agreements faced some time because of need to offer share certificates. Then in the year 1996, dematerialization was captivated. Speaking of dematerialization, it is the procedure via which physical share certificates detained by an investor gets transformed into an equal number of securities in the electronic shape and then it gets credited into the demat account of the investor. You can easily get Free Demat Account once you look around.
In the present time anyone can avail a Demat Account for all their stocks and shares. Such are the accounts that got introduced in the nation in the year 1996. Prior to these shares and securities used to get delivered physically and traded. These securities are now easily available to hold electronically via these demat accounts. These accounts make the entire procedure of investing, monitoring, gripping a trade, convenient, quick and absolutely cost efficient. You can easily find out individuals who have accounts and managing their shares and everything.
A peep into their features s
There are different kinds of features found in these accounts and some of these are like:
Easy Share Transfers
Investors can comfortably 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 permit the users to cater all the specifications that are required for executing a transaction in an active manner.
Quick Dematerialization & Re-materialization of Securities
The account holders can easily 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 requirement be.
Freezing accounts
It might also take your interest that the account holders can also freeze their accounts for a specific period. It is just as per the requirements of the account holder. It is the option that can be beneficial only if a person wishes to avert unexpected credit or debit into the Demat account. Added perk is that the freezing option would also be there for a specific quantity of securities held in account.
facility to gain loan
There are various lenders out there who cater loans against securities that are gripped in the Demat account of borrowers. These holdings are clearly used as security to get loans by the account holders.
Conclusion
Thus, the point is you can get started once you have a demat account. It is a lot easier and more efficient these days!
