Are you planning to invest in the share market? The Share Market in India is very volatile and keeps changing every day. Even though the share market is considered to be risky, but if you invest and plan well then the returns that you get are really nice. There are a lot of traders who invest in share markets to get fast cash.
The most important thing that you need to do in order to start trading in stock market is to open a demat account. This demat account is very similar to a normal bank account. The only difference is that your securities are deposited in the electronic form in the account. So, what are these securities? These securities include shares, bonds or debentures. Understanding the Demat Account and its features There many benefits and features added while an online demat account opening and such accounts have various charges. Following are a few features that you should understand before investing. In our country dematerialized securities are not available on paper but they are just a mere certificate. A Bank or any other Depository Participant who have a Demat account in India can easily convert securities into electronic with the help of a Demat Request form. In such a way you can carry out dematerization in our country. Whenever an investor transfers his/her shares, he/she has to fill up a Delivery Instruction Slip and Receipt Instruction Slip. This is done so that they can sell or buy securities later in their life Investors who have demat trading accounts can take up loans against securities that include various debentures, shares, bonds, mutual funds and other units. These securities are offered as warranty amount to the lender by the borrower and you can get your loans. Since you convert your physical form into electronic form to carry out trading, in a similar manner you can convert electronic securities into physical form. This is known as Rematerialization. An online demat account opening requires internet. Since, a demat account is electronic in nature it can be easily accessible. You can access these accounts on your smartphones and laptops. When you open a Demat account, you are given the facility of Speed- E. This made available to you by the NSDL. With this mode you are allowed to send out instruction slips instead of sending papers.
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