Do you wish to get started with a free demat account but the problem is you don’t know much about it? If that’s the case then you are welcome to the page! A Demat account is important for one who is interested in digital trading of equity as well as shares and many other securities.
Today, here in this blog you will learn about different important elements of a demat account which play an important role in its benefits as well as features to learn. So, let’s get started and dive deep into the necessary key elements.
Key Elements of Demat Account
- Demat Account Number (DAN): Those who get started with a demat account are provided with an account number which is termed as a Demat account number. This number is necessary for the transaction purpose whether it is related to buying or selling securities.
- Closure or Termination of Account: It is possible to close the demat account if the account holder wishes for that as well as in other emergencies too. The demat account can be closed if the account holder is failed to maintain the required balance in the account. The holds can be claimed electronically.
- Depository Participants: DP– the depository participant can administrate the demat account either from the bank or any other financial institution. DP is the one who is responsible for letting the linking or movement of securities and funds do to other people. DP is also responsible for the rules and regulations in the case of the account and the securities of the amount.
- Benefits Associated With a Demat Account: The benefits and facilities including bonuses, direct payment feature of income tax, rights, issues, transactions, etc., are entitled to the account investor.
- Nominee Facility: The nominee feature is available in the demat account case. The Demat account holder can nominate the other person to let his interest in the account or security in the Demat account go. The nominee receives the DP’s electronic items in case the Demat account holder is dead.
- Inter-Depository: The feature of transferring the securities from a demat account to any other depository firm is all possible due to inter-depository linkages. When one investor wishes to transfer all his securities from one to another depository then this facility is useful.
- Security: For the investor portfolio the demat account gives the best level of security. All the transaction records are well maintained by the depository and they are also fully safe and secure from any other unauthorized access.
- Portfolio View: The holder of a demat account is allowed to view his/her portfolio as well as the other holding in it. This enables the account holder to make the transaction quickly.
For stock trading, the key elements of a demat account play an important role including a user-friendly interface, bonus points, transaction type, and so on. Therefore, it enables one to buy and sell securities with ease.
The Demat account helps investor easily manage their finance. Also, the demat account benefits them with many advantages including a cost-effective strategy.
If you plan to enter the world of the money market then open up the demat account as soon as possible to get all the benefits related to it.