Demat Account Features for Beginners in India

Have you ever wondered what would happen if Demat accounts never existed? In such a case, we would still use paper certificates for every stock market transaction. These accounts offer a safe space for storing securities in electronic format. Beginners in the stock market must first understand the Demat account features. Read on to understand its features and benefits in this blog.

Features and Benefits of Opening a Demat Account

Demat account have a wide range of features benefiting investors. Trading becomes easy with the help of such an account. It is even better when you open a 2-in-1 (Demat cum trading) account in India. Here are the Demat account features you should know:

• Dematerialisation of Securities

  One of their biggest advantages is dematerialisation. A Demat account converts physical securities into electronic form, thus completing the process of dematerialisation. Stocks, bonds, and other securities can be converted into their electronic form. Without a Demat account, you will be stuck with paper-based certificates. Electronic securities are easy to store and aren’t vulnerable to theft/tearing.

• Quick Transfer of Shares

  A Demat account allows you to transfer shares in quick succession. You can transfer shares to another account without visiting a physical office. You can use the DIS (Delivery Instruction Slip) or RIS (Receipt Instruction Slip) to transfer shares from one Demat account to another.

• Account Freeze Facility

  One of the Demat account benefits is the account freeze facility. The investors can freeze their accounts as and when required. Usually, individuals freeze their respective accounts when a fraud has occurred. Your broker might also freeze your accounts in case of fraudulent activities. All transactions are stopped when a Demat account is frozen, thus ensuring no further damage in case of fraud. Once the issue is resolved, your account will be unfreezed and will operate normally.

• Easy Portfolio Monitoring

  A Demat account can help monitor the securities at all times. You can view your portfolio and make informed decisions. You can track asset allocation, diversification status, and other factors with such an account.

Which is the Best Demat Account for Beginners in India?

Now that you understand the Demat account advantages, let us discuss the best choice for new investors. Investors can open a Demat account with Religare Broking. Here’s why one should apply for Demat-cum-trading account with Religare Broking:

• 2-in-1 Account: You can open a Demat cum trading account for added benefits. The trading account will allow you to make transactions on the stock market. On the other hand, you can use the Demat account to hold stocks, bonds, and other financial instruments.
• High-End Trading Platform: Religare also offers advanced trading platforms for investors. These trading platforms can help with investment research and analysis.
• Reasonable Brokerage: Investors will pay reasonable brokerage charges.
• Investment Choices: You can invest in stocks, IPOs, derivatives, currencies, and other securities with the help of a Religare Broking Demat and trading account.

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How to Open a Demat Account with Religare?

Here’s how one can open a Demat account online with Religare:

• Visit the official website of Religare Broking or the Religare Dynami app to open a Demat account online.
• Enter your name, email ID, city, and other details to get started with your account application. You must also provide the OTP (One Time Password) received on your mobile number.
• You must provide the KYC (Know Your Customer) documents for verification. Your Demat account will not be opened without KYC documents. You’ll need to submit the PAN (Permanent Account Number) card, bank statements (for the past six months), proof of residence, and other KYC documents.
• You must wait after uploading the KYC documents on the website. These documents will be verified by Religare in quick succession.
• You will receive the Demat-cum-trading account credentials upon successful verification of KYC documents. You will have a unique account ID for trading purposes.
• You can now log in to your zero brokerage demat account and start investing and trading.

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Conclusion

Demat accounts have become a necessity for modern-day traders. You can store electronic securities safely within a Demat account. There is no need to store a paper certificate for each stock market transaction.

Demat account benefits include easy portfolio tracking, account freeze facility, easy transfer of securities, and dematerialisation. So, begin your trading journey with a Demat account now!

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