Accounts

Since the securities are held in electronic form there is no storage risk involved. The DP is responsible for maintaining and safeguarding the investor's account. An account is one of the easiest and securest forms of holding a securities account. The account also allows the investor to nominate their kin. Automatic transfer of the securities is carried out to the specified nominee.

In spite of the account being a common account for all the securities. The investor does not have to provide their details every time a transaction is carried out through the DP. The account linked to the investor with their Unique Id represents the investor and has all the particulars listed out. Thus, every transaction is automatically updated with the specifics.

Opening an account does not only aid in trading of shares. It also operates for debt instruments like bonds, NCDs, government securities, mutual funds, etc. An investor can hold all the investments in a single account.

One of the greatest benefits of a demat account is the electronic trading process. Initially, there was a high risk for fake shares, theft and wrong deliveries of the securities. The electronic system today will directly credit the securities to the investor's account automatically, regardless of the quantity and amount of shares.