Get Information On How To Operate Demat Account
Posted: Dec 30, 2017
To open a demat account you need to approach a depository participant (DP). A DP is authorised to offer depository services to the investors. The depositories of India are CDSL and NSDL. The depository participants are banks, brokers and financial institutions. To dematerialize the physical shares the shares must be in your name and this is a must for the demat account opening.
Once you have a demat account you should know how to operate demat account. When you want to buy demat shares at the stock exchange through the broker of your choice then you have to pay the broker. The broker instructs the DP to debit his clearing account and credit your demat account. The broker can transfer the shares directly. To sell demat shares at any stock exchange through a broker you have to give instructions to the DP to debit your demat account and credit the broker’s account. You get the money accordingly.
Benefits of a demat account
There are many benefits of a demat account. They are as follows :
- Automated pay-in facility
- Efficient pledge mechanism
- Speedy settlement process which results in increased liquidity of the shares
- The companies can do instant disbursements of non cash benefits like bonus and rights
There are many online trading account providers and the charges are competitive. When trading online you get access to high-end tools, research reports, expert advice and more for trading online. The online trading platform is well-structured and the interface is friendly which helps you to easily manage your online account.
As long as you have the access to the internet you can trade anytime and anywhere. There are apps available that help you to trade. You can easily buy or sell shares. You can trade in multiple market using one account. You get instant access to the latest market updates. Some offer interactive charts to help you keep track of your investments.
Most of the providers offer 24/7 customer service which is good and prompt. Some also offer phone assistance wherever required.
Demat account charges
The depositories charge the DPs and not the investor. The DPs are allowed to have their own fee structure. The charges of the demat account vary per DP. The charges for the demat account are account opening fee, maintenance fee, custodian fee, transaction fee and the dematerialization fee.
Shaeen Patel works for a firm that offers depository services. Her work is to open the demat account for the clients. She explains to the clients how to operate demat account. She likes her work at the firm.
To trade online you need a demat account. The demat account is used to store the shares when you trade online. You can open a demat account by approaching a depository participant (DP). There are many benefits of a demat account.