Demat Account: What precautions should you take while using it?
Also Read: Demat accounts: Everything you should know about the annual maintenance charges on them This robust support from retail investors propelled the Indian stock market to unprecedented highs, positioning it as one of the top 5 markets globally. During today's trading session, the market capitalisation of BSE-listed firms reached ₹400 lakh crore for the first time. While opening a demat account in India is a matter of hours, maintaining it necessitates certain precautions that retail investors should carefully observe.
In this article, we will delve into key aspects that retail investors should keep in mind while operating a demat account. Also Read: Can investors hold multiple demat accounts in India? MintGenie answers The demat account serves as your entry point into the realm of stock investing, granting you access to various financial instruments and opportunities for trading to capitalise on stock price fluctuations. Similar to a bank account, a demat account safeguards your securities in electronic form, offering both convenience and security.
It eliminates the necessity for physical share certificates, streamlining the management and tracking of your investments. Also Read: What is the difference between a demat and a trading account? MintGenie explains Additionally, the account enables participation in IPO bidding, receipt of dividends, and allocation of bonus shares directly into your account (dividend amounts are credited to your bank account). Importantly, there is no limit on the number of demat accounts you can possess simultaneously.
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