Demat is a convenient way to trade

Demat is a convenient way to trade

i. What is a Demat?
Demat stands for De-materialization. In Demat form, there is no physical scrip in existence as neither the individual who owns the shares nor the depository keeps the scrips. The depository maintains the electronic ledger of the securities under its control.

ii. Proof of the developing Securities market:
Freely traded securities are an essential component of any developing securities market and is a step towards the advancement.

iii. Benefits:
a.)The depository system and dematerialized securities offer paperless trading and transfer of shares through the use of technology.
b.)It eliminates the paper work involved in scrip-based trading and share transfer system.
c.)The threat of loss of certificates or fraudulent interception of certificates in transit, that causes anxiety to the investors, are
eliminated.
d.)The investor is also relieved of problems like bad delivery, fake certificates, shares under litigation, signature difference of transferor and the like.