Garima Pal
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what are Advantage and disadvantage of Demat account ???
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spaces
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acharya
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The biggest benefit is that you do not need to hold securities in physical form rather they are kept in electronic form and therefore the risks of losing shares due to theft, fire, flood and earthquake are eliminated.
One can have instant transfer of stocks from one account to another and therefore the whole process of buying and selling becomes fast which in turn increases the efficiency and effectiveness of stock market as a whole.
Since they are hold in electronic form there is no stamp duty on transfer of securities which reduces the transaction costs associated with buying and selling of shares.
