Benefits of dematerialization
Dematerialization is not only meant for holding stocks but also for holding debt instruments like bonds. So, it is a treasure to keep your all sorts of investments.
Since it is a common account, you don’t need to provide your account details every time you transact. These details will automatically get updated to the companies you transact with.
Single Share Transaction:
With the introduction of dematerialization, now a single or odd number of securities can also be transacted which was really a problem before the emergence of technology and online trading account.
No More Delivery Risk:
Dematerialization has also eliminated the risk and time of share delivery and thereby, has reduced the paperwork involved. Now, once your trade is approved, your certificate gets automatically transferred to your demat account within almost no time.
No More Extra Cost:
No extra cost is now involved in transferring securities as it does not need any stamp duty.
Easy to Preserve:
Paper certificates are prone to wear and tear but in contrast, demat is a safe and convenient way to hold your securities for ages to come.