Advantages of Demat Account
In the Depository System, the ownership and transfer of Securities takes place by means of electronic book entries. Demat account holders can buy and hold Shares, NCDs or other debt securities. They can access the account just like a bank account with the following advantages and safety features :
- No Stamp duty on transfer of securities.
- Immediate and fast transfer of securities.
- Elimination of 'Bad Deliveries'.
- Elimination of risk by loss, theft, mutilation etc.
- Faster settlement and disbursement of Corporate benefits like Bonus, Rights, Dividends etc.
- Elimination of mismatch in Bank Accounts and Address.
- Convenient Nomination facilities.
- Convenient Transmission formalities in case of death of a holder.
- No TDS deduction for demat securities.
- Demat account information and statement regularly sent to the customer.