A glimpse to the Demat account introduction

The concept of share trading is not new to the investors and since decades, traders are buying and selling shares in order to make good returns. Going with the trend, demat account was introduced for a better convenience and hassle-free trading practice. In India, demat account services are provided by NSDL and CDSL through intermediaries or depository participant or stock broker agents.

Demat account introduction:

Demat account is a dematerialized account that holds shares and securities in a digital format. The purpose of introducing demat account was to hold shares in a dematerialized format, in order to make share trading easy and convenient.

Dematerialization is the process of converting the physical certificates into the digital or electronic form and vice versa. Dematerialized shares and securities are easier to maintain and are accessible anytime from anywhere throughout the globe. Traders are not required to be present at a certain location at a specific time and thus, can trade into the share market at their own convenience. This also eliminates the need of holding physical share certificates and provides seamless power to track and monitor the share market at the fingertips.

Key uses of demat account:

1. Easy transfers – Dematerialized account has been mandated for the trade investors to ensure easy share transfers. Traders can transfer their share holdings via a Delivery Instruction Slip (DIS) or Receipt Instruction Slip (RIS).
2. Easy monitoring – With online trading system, traders and investors can easily track and monitor their shares, bonds, and mutual fund investments through a single demat account. The account holds all the investment instruments at one place, so that the investor can easily get access to them. 
3. Eliminates risks – Of course, there is always a risk of wear and tear in case of physical certificates. Therefore, online share trading completely eliminates the risk of wear and tear, bad delivery, thefts, fake securities, etc. This is because in online trading, all the investment instruments are kept secured at one place in demat account, which can be accessed through different modes like laptops and Smartphone. 
4. Track portfolio performance – This is specifically beneficial for new or young investors who have a little knowledge about demat account introduction or the share market. Dematerialized account lets the investors track their portfolio (shares, mutual funds, bonds, etc.) performance for buying or selling of the investment instruments. 
5. Market updates – It could otherwise be difficult to track all the market updates, but the demat account helps the investor to follow the latest share market updates about the companies they have invested in. 

So, this was all about online trading system. For more details visit https://www.applykaroo.com/demat-account.