It is apparent that technology has brought about an amazing change in the daily lives of people. Even the stock markets have not been left uninfluenced by the dynamic alterations. In 1875, the Bombay Stock Exchange was got established with an open uproar platform trading exchange. If you know or heard of, traders were in a tendency of standing on floor therein and shout the costs of stocks for purchasing or selling.
After it was done, cash used to get exchanged for the physical receipts of all the shares that are known as the certificate. It is a thing that led to a huge amount of paperwork. Even the payments of all the trade agreements underwent some time because of need to offer share certificates. Then in the year 1996, dematerialization was attracted. Speaking of dematerialization, it is the procedure through which physical share certificates imprisoned by an investor is transformed into an equal number of securities in the electronic format and then it gets credited into the demat account of investor. These days you can hear a lot about Demat Account and they are the backbone.
Presently anyone can avail this Account for all their stocks and shares. These accounts got into picture in the nation in the year 1996. Prior to these shares and securities used to get delivered physically and traded. These securities are now easily available to hold electronically through these demat accounts. These accounts make the entire procedure of investing, gripping a trade, monitoring, convenient, swift and absolutely cost efficient. You can discover individuals having accounts and managing their shares and everything.
Features These Accounts Possess
A few of the many features can be like:
Tension free Share Transfers
Investors can easily transfer their holdings via a delivery instruction slip (DIS) or even the receipt instruction slip (RIS) for vending or purchasing shares. These are the slips that permit the users to offer all the particulars that are needed for performing a transaction in an efficient manner.
Quick Dematerialization &Re-materialization of Securities
The account holders can easily provide instructions to their depository participant (DP) to alter the physical certificates into the electronic format. In the same manner, electronic securities can even get transformed to physical shape, in case the need be.
It could also surprise you that the account holders can even freeze their accounts for a particular period. It is just as per the requirements of the account holder. It is the option that might be advantageous only if a person wishes to avert any sort of unexpected credit or debit into the Demat account. Added perk is that the freezing option is even there for a particular quantity of securities held in account.
So, since you know about this account now, make sure that you pick the right one. You can look for it and pick the platform that you think is good for your endeavours. The account should have all the good features that you may require. You must compare the accounts and their features before you pick one.