HomeInvestmentWhy Are So Many Demat And Trading Accounts Opening In India?
Why Are So Many Demat And Trading Accounts Opening In India?
August 5, 2021
During the last 12 months, it has been noticed that the value of Nifty 50 index has grown a lot. Nifty 50 is a standard index that shows the average of top 50 companies in India listed on the National Stock Exchange (NSE). It was valued at Rs. 10,891 in August 2021 and as of now its current value is Rs. 16,045. This clearly shows that despite the fact that COVID has affected India badly, the investors are gaining a lot through trading and investment instruments.
More and more people are opting for opening their demat accounts in India and also opt to Open a Trading Account, and the question is why is it so?
As reported by SEBI (Securities and Exchange Board of India), 10.7 million demat accounts were opened between the time period of April 2020 and January 2021, all thanks to ease in accessing the stock market with the help of brokers and demat account opening service providers.
Several people became jobless amid the COVID-19 crisis and we think that this is the main reason behind the skyrocketing of share market in India. There was a boom in the no. of demat accounts opened in past months. If you’re also interested in opening a demat account and want to start trading, we suggest you to consult the expert team of RKFS, one of the best investment services provider in this field.
What is a demat account and how it can help you in maintaining your records of trading and investing?
This account assists an investor or trader of stocks or any other investment instruments to keep their securities and shares in an electronic form (in soft format). The abbreviation of demat account is dematerialization account which also facilitates keeping a track of how and where the money of investor is distributed.
Benefits of opening a demat account in India:
Below, we have listed some of the main advantages that a demat account can offer you:
A reduction in risks:
It is obvious that maintaining and holding documents and records in physical format is very difficult for a person. And this is how a demat account comes as a savior, this account helps in avoiding dealing with physical shares.
Ease in getting loans:
You can also use your securities present in your demat account as a collateral in taking loans from bank.
Less chances of incurring losses
It is possible that if you keep the records of your share in physical form, you might lose or misplace them. Therefore, it is considered that the ideal option for keeping your shares or securities, in such a digital world, is in your demat account.
Falsification of documents
The possibility of facing forgery issues is high in case where financial documents are in paper form. Dealing with forgery cases can give you a lot of stress. To avoid facing such circumstances, it is recommend to take help of demat account and store all your records in it having safety and security.