A Demat Account is a account that provides the facility of holding shares and securities in electronic format. - This allows easy trade for users. - Instead of the investor taking physical possession of certificates. one of these accounts is opened by the investor while registering with an investment broker
Some Pro's of openning this type of account: - The most essential advantage of a Demat account is that you can rest assured that your share certificates are safely held with a reliable agency. - You can transfer the shares easily and quickly. All that you need to do is contact your broker and provide suitable information pertaining to the transfer. - You can hold mutual funds, bonds or even gold ETFs with your Account. - No stamp duty is required on share transfers, thereby reducing the cost of transactions.