Need assistance?
Allow us to help you setup your account. Enter basic details only.
Are you planning to invest in stocks?
To begin trading in equities, you need to have a:
Demat Account Introduction
Demat - an abbreviation of dematerialization, allows investors to hold share certificates and securities in electronic form instead of physical form. Demat Account is like a bank account. Like in bank accounts you electronically hold money, in Demat account you hold shares electronically. It makes the process of holding investments like shares, bonds, government securities, Mutual Funds Investments, Insurance and ETFs easier, that reduces the hassles of physically handling and maintaining shares and related documents. As per SEBI to trade in stock market it is mandatory to hold a demat account. When securities are purchased or sold it gets reflected in the account. All buying and selling of shares happens through a Demat account.
Benefits of Demat Account
For an investor in stock market, a Demat Account is required as to holds your financial instruments in an electronic form.
It reduces risk, saves cost, saves transaction time and increases liquidity.
Demat Account with reliancesmartmoney.com helps you make all your investments under one roof.
Why do we need a demat account?
Top 10 Uses of Demat Account
-
1. To trade in equities
-
2. Easy transfer of shares
-
3. Faster dematerialization of securities
-
4. Pledging to avail loan: Loans Against Shares
-
5. Freezing Demat Accounts
As per SEBI Regulations, transfer of securities would not be processed unless the securities are held in the materialized form. Therefore, you need to have a Demat account to trade in the stock market. Stocks that were earlier held in paper form also need to be dematerialised.
An important point to note here are the recent guidellines laid down by the SEBI. According to SEBI, any investor who is desirous of transferring shares (which are held in physical form) after December 5, 2018 can do so only after the shares are dematerialized
Source: https://www.sebi.gov.in/media/press-releases/aug-2018/amendment-to-sebi-listing-obligations-and-disclosure-requirements-regulations-2015-mandating-transfer-of-securities-in-dematerialized-form-with-a-depository_39938.html
A Demat account ensures easy share transfers. You can transfer your holdings through a Delivery Instruction Slip (DIS) or Receipt Instruction Slip (RIS).
A Demat account helps you convert physical shares in a dematerialized form. This can be done quickly by providing instructions to your depository participant (DP).
You can use your shares as collateral for a loan, using your Demat account.
You can freeze your stocks for a certain period using your Demat account.This prevents unexpected debit or credit into one’s Demat Account. The freezing option is also available for a specific quantity of securities held in the account.
-
6. Elimination of risks
-
7. Quick and Easy Trades
-
8. Corporate benefits & actions
-
9. Track portfolio performance
-
10. Follow market news
With physical certificates there are risks such as bad delivery, fake securities, delays, thefts etc. Also it is easier for investors to keep a check as Demat Accounts are more accessible on different modes like mobile phones and laptops.
You can perform quick transactions using your Demat account. The National Securities Depository Limited (NSDL) and CDSL allow you to send instruction slips easily to your DP.
If the companies, you have invested in, offer dividends, refunds, or interest, these benefits get transferred directly through your Demat account.In addition, corporate actions like bonus issues, right shares, or stock split are automatically updated in the Demat account of all the shareholders.
You can track the performance of your stocks. Open a demat account now and start investing!
Demat account can help you follow announcements from companies you have purchased stocks.
reliancesmartmoney.com has a wide range of smart investment options to choose an investment portfolio of your choice.
When placing an order for trade, you need to select a product code to identify the category of the order. There are multiple product codes, namely:
