Imagine being stuck with a pager in the mobile phone era. This is precisely the problem that most people will face if they remain aloof of the online demat account. An investor would be severely handicapped without it, to the extent of not being able to take full advantage of today’s investing opportunities.
So what is an online demat account and what are its benefits. Simply put it is a facility that allows for securities to be held in a dematerialized form and which can be transacted via the internet. Earlier an investor had to visit or phone in to a branch to trade. Instead with an online demat account, he or she can trade online, from the comforts of home and office.
Once a trade is done receipt and delivery of securities as well as crediting and debiting of account balances are done electronically.
Your online demat account can also help you accumulate mutual funds without any hassles. You can also register attorney powers, change addresses and effect signatures with the submission of requests. Demat account details have to be provided to Asset Management Companies and Transfer Agents in addition to submitting requests to Depository participants for mutual fund conversion. These two steps facilitate the seamless purchase of mutual funds through requisite stock exchange platforms. As can be seen, a demat account held online, will actually benefit your trading and investment needs immensely. You can consult senior banking and brokerage personnel in this regard.