importance of demat account in seamless trading and other corporate transactions

Karvy is a financial services company founded in 1983 and headquartered in Hyderabad. The company offers a range of financial services including distribution of financial products, stock broking, depository participant, wealth management, commodities broking, and much more. It is ranked among the top 5 companies in the country across its business segments. Karvy also marks its presence in countries like Bahrain, Malaysia, Dubai, and US.

Demat account

A Karvy demat account is suited to hold all the shares purchased in electronic or dematerialized form. The account type functions similar to any other bank accounts as it too holds the certificate of financial instruments like mutual funds, government securities, shares, bonds, and exchange traded funds (ETFs).

Basically, physical shares are converted into electronic format through dematerialization process. An account holder needs to have a demat account number to enable electronic settlements of the trades. Securities in demat account are carried out electronically and are debited and credited accordingly. This account type can be opened with no balance of shares.

Technology and trading platform: 

We are living in the age of digitization and online trading platform is getting widely popular among the investors and traders. Even though most people open a demat account solely considering brokerage charges, technology aspect should not be ignored.

Online platform gives confidence and allow the account holder to behave consistently and doesn’t take much time in loading the account details. In fact, if you are an expert investor or trader, technology should be considered more important aspect than even the brokerage charges.

Features of online Karvy demat account: 

• Real time price tracking of multiple stocks
• Feature to create your watch list to track most preferred stocks, events, and prices
• Get a quick and convenient analysis of the financial data and history of a stock company 
• Track current portfolio value and the cost of portfolio
• Check the history of buy and sell of shares for any period of time
• Compute profit and loss of individual and overall stocks
• Bid your shares and know the current market value of the shares 
• Know your margin money, if any
• Get a fair idea about the annual gain/loss for tax purpose.

Fees and charges:

Brokerage – A stockholder needs to pay brokerage charges every time they buy or sell stocks. However, the brokerage charges may vary from company to company and is calculated either in percentage term or fixed amount. There are separate charges incurred while trading in derivatives and mutual funds.

Annual fee – This is charged on annual basis. The fee can vary, generally, ranging from Rs.500 to Rs.2000 depending upon the brokers and services offered.

For more details, log on to https://www.applykaroo.com/demat-account/karvy-demat-account.