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Demat by StockHolding: Consider this before opening a Demat account

The online Demat account is the one-stop answer to all your financial needs.Premium
The online Demat account is the one-stop answer to all your financial needs.

Opening an online Demat account with Stock Holding Corporation of India allows you to access and manage multiple investments through a unified login, offering you an easy and hassle free way of managing your money. The online system is the one stop solution for all your financial needs, including Demat, Bonds, Mutual Funds, IPO, Sovereign Gold Bonds and National Pension Scheme.

Struggling to open an online Demat account, to keep your stocks and shares more organised, so that you have increased visibility and ease of doing transactions? Demat by StockHolding is just the solution you need!

The online Demat account is the one-stop answer to all your financial needs. A Demat, or Dematerialised account allow investors to hold their investments in financial securities in electronic form – whether it is equities or debt instruments such as Debentures or RBI Floating Rate Savings Bonds, 2020 (Taxable).

Hence, it eliminates the risks of forgery, theft, damage or any other kind of loss to shares, which could happen when held in physical form.

Benefits of a Demat account

Having a Demat account has several advantages – the entire process of transfer of securities is immediate and convenient and you don’t need to pay any stamp duty on it.

When investments are held in demat form, Depository (such as NSDL) allow consolidated investment and it’s performance reporting, periodically. So, an investor gets a single snapshot reporting for all their investments in demat form. Demat accounts are mandatory for trading/ holding shares on delivery basis. Also, for select kinds of investments, such as IPOs, demat account is mandatory.

For future planning, processes such as nomination and transmission facilities in the event of death of a holder also become a lot simpler through a Demat account. It also allows for faster disbursement of corporate benefits like Bonus, Rights and Dividends.

Investing in Debentures

The common perception is that a Demat account is only used for investing into stocks. But your Demat account can also be used to invest in other financial instruments tools like a debenture, which is essentially a sort of bond or debt instrument that is unsecured by collateral and usually has a term greater than 10 years.

As an investment option, debentures are secured and offer fixed returns and stable prices. The investment offers a regular source of income and also has flexibility in availability of funds, whenever you need them. It is important to remember that since debentures don’t have a collateral backing, they are backed by the credit worthiness of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

RBI Floating Rate Savings Bonds 2020 (Taxable)

Another attractive investment avenue that opens up through a Demat account is RBI Floating Rate Savings Bonds 2020 (Taxable), commonly known as RBI Bonds. On July 1, 2020, the Government of India launched the Floating Rate Savings Bond 2020 (Taxable) scheme under which a person residing in India or a Hindu undivided family are eligible to make an investment.

The minimum investment is 1,000 and there is no maximum limit on this. These bonds are issued in electronic form and are held at the credit of the holder in an account called Bond Ledger Account (BLA). The tenure is 7 years from the date of issue with a special provision for premature redemption for senior citizens.

Initial Public Offerings (IPO)

A Demat account can also help you invest into IPOs, or Initial Public Offerings, which offers you an opportunity to own stakes in a promising company at an early stage that might reap high dividends for years to come and also align yourself as an investor in the company’s long-term success.

IPOs are a more transparent form of investment as the price per security is stated, offering you full visibility over your investment. With the spate of IPOs coming up, especially the much-awaited Life Insurance Corporation of India (LIC) IPO, open your Demat account, which is a prerequisite to invest into IPOs and reap the benefits of this investment.

Why StockHolding

Demat gives you access to all the vintage that comes from the umbrella of Stock Holding Corporation of India Limited, which is India’s first Depository Participant. The platform has a large online presence that serves over millions of happy customers.

Incorporated in 1986 and with a Pan-India network of over 200 branches and a centralised dealing room, StockHolding offers you expert advice on multiple trading options, all at one place. Experts from StockHolding are always focussed on your needs and offer research across several stocks to come up with innovative solutions for your portfolio.

Stock Holding Corporation of India is one of the country’s largest depository participants, with a strong pedigree of certified professionals on board who promise trustworthy service. StockHolding is the recipient of the NDSL Star Performer Award for the “highest Asset Under Custody" for eight consecutive years with over 38 lakh crore as assets under custody.

So, what are you waiting for? Visit https://www.stockholding.com/demat-trading for further details and open your Demat account with Stock Holding Corporation of India Limited today! It will transform the way you manage your investments.

 

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