Is it necessary to open a demat account?
Yes it is compulsory to open a demat account for investing in equity. When you open an integrated Demat and Trading account with HSBC InvestDirect, it helps in seamless transfer of shares for trading and investment.
What are the benefits of opening a demat account?
The benefits of participation in a depository are:
- Quick transfer of securities
- No stamp duty on transfer of securities
- Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc
- Reduction in paperwork involved in transfer of securities
- Reduction in transaction cost
- Nomination facility
- Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately
- Holding investments in equity, debt instruments and Government securities in a single account
- Automatic credits into demat account, of shares, arising out of split/consolidation/merger etc.