What Is A Demat Account?: Importance, Types, Benefits, and Working Procedures

A demat account holds your investments in electronic format. It is essential to have a demat account if you want to invest in stocks, currencies, bonds, commodities, and some other asset classes. The different types of demat account include regular, BSDA (Basic Services Demat Account), repatriable, and non-repatriable demat account. The eligibility and conditions vary for each of these demat account types.  

A demat account facilitates an easy and convenient way of online trading. It allows you to monitor your holdings closely. Moreover, the details regarding investments in various sectors or asset classes make investment a much more interesting process. You can verify the details of every trade you have taken by downloading a detailed account statement. A demat account is linked to a bank account and a trading account. 

The interconnection between these three accounts helps you to buy and sell shares efficiently. Trading and investing processes have become a lot faster due to the demat account and trading account. As all the transactions are done online, you don’t have to pay for the stamp duty charges which were applicable when shares were traded physically some years ago. 


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