Electronic Holding of Securities

• Demat accounts enable holding of shares and securities in digital format.
• Eliminates the risk of loss, theft, or damage to physical certificates.
• Allows for easy and quick access to investment portfolios.
• Simplifies record-keeping and reduces paperwork.
• Secure electronic storage is recognized by regulatory authorities.

Mandatory Requirement for Trading

• SEBI mandates a Demat account for trading on Indian stock exchanges.
• Physical share trading is no longer permitted in most cases.
• Demat accounts are essential for buying, selling, and transferring securities.
• Ensures all trades are settled in electronic form.
• Demat account number is needed for stock market transactions.

Faster Settlement and Transfer

• Enables instant transfer of securities after trades.
• Reduces settlement time compared to physical share transfers.
• Automates credit and debit of shares post-trade.
• Minimizes delays and errors in delivery of securities.
• Improves efficiency and speed in trading operations.

Convenient Portfolio Management

• Investors can hold multiple securities in one account.
• Facilitates tracking, monitoring, and reviewing investments easily.
• Provides consolidated statements and transaction records.
• Enables quick decision-making with real-time portfolio updates.
• Supports integration with trading and banking accounts.

Reduced Transaction Costs and Risks

• Saves money on stamp duty and transfer fees.
• Reduces administrative costs related to physical handling.
• Prevents fraudulent transfers and duplication of certificates.
• Banks and brokers provide online platforms for cost-effective management.
• Automated systems ensure higher accuracy and lower risk.