A Demat account (Short form of dematerialized account) is an account through which all physical documents are converted into electronic documents. In order to permission a Demat account, you need to have the internet along like the username and password of the account.
• Benefits of Demat system
• This is an simple and most convenient pretension to buildup all 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.
promote to the company
The depository system will condense the cost for the transaction and the company can have an in force cost-cutting process even if carrying out the process through a Demat account. It provides fine communication and timely facilities to every shareholders and investors.
Benefits to investors
The swashbuckler is secure from the risk of holding the physical security documents as they need to preserve the document upon their own risk for a long time. The delivery problems due to signature issues can be minimized when the electronic transfer. No stamp duty is paid on any transfer of shares.