A Demat account (Short form of dematerialized account) is an account through which every mammal documents are converted into electronic documents. In order to admission a Demat account, you craving to have the internet along like the username and password of the account.
• Benefits of Demat system
• This is an simple and most convenient habit to accretion every securities and shares for a longer period.It is considered to be safer than the paper documents as they are prone to any damage or theft or any misuse. That is why companies prefer fiscal dematerialization of invoices (dématérialisation fiscale des factures) as it can be saved for a long period.
• If you need to transfer your securities, less paperwork is needed.
• The transaction cost is also reduced compared to the physical document transaction cost.
• A single Demat account can hold both equity and debt shares in it
• The traders can work anywhere online as all the securities and shares are available in their Demat account and they can use that account anywhere in the world.
sustain to the company
The depository system will shorten the cost for the transaction and the company can have an full of zip cost-cutting process even though carrying out the process through a Demat account. It provides good communication and timely services to all shareholders and investors.
Benefits to investors
The entrepreneur is safe from the risk of holding the being security documents as they dependence to preserve the document on their own risk for a long time. The delivery problems due to signature issues can be minimized similar to the electronic transfer. No stamp duty is paid upon any transfer of shares.