Question

What are the benefits of Dematerialisation?

Answer 1

1. The risks pertaining to physical certificates like loss, theft, forgery and damage are eliminated completely with a DEMAT A/c.
2. The lack of paperwork enables quicker transactions and higher efficiency in trading.
3. Without the need of visiting the Broker, one can trade through computers at any location.
4. The shares that are created through mergers and consolidation of companies are credited automatically in the DEMAT A/c.
5. As all the transactions occur through the DP, a trader does not have to communicate individually with each and every company.
6. There is no need for stamp duty for the transfer of securities.
7. Certain Banks are also permitted the holding of both equity and debentures in a single account.
8. Bank provide Trained and Dedicated CCD’s to assist in all the procedures.
9. A DEMAT account holder can buy or sell any amount of shares.
10. The holder can take a loan against securities in the DEMAT account.