InvestorQ : Tell me how can I make the best use of my demat account?
swati Bakhda made post

Tell me how can I make the best use of my demat account?

rhea Babu answered.
3 years ago
Opening your demat account and using it for your trading purposes is just one part of the story. The demat account is actually much broader than that. Apart from the normal benefits of demat account, it is also essential for you to understand how to use the demat account. If you have understood what is demat account and how to open a demat account, the next step is to understand the multifarious uses of the demat account. Demat account can also be used to directly get the credit of your IPOs. In fact, you do not even need a trading account. DP account alone is enough for IPOs.
You can use the demat account to dematerialize and rematerialize your shares. When you are holding physical certificates then you can convert the shares into demat by giving a demat request form (DRF) to your DP. If you have bought shares in physical form and you want to transfer the shares into your name and also dematerialize it then you can use this facility. Similarly, you can also convert demat shares into physical shares by using re-materialization form. Demat accounts can also be used to transfer shares offline from one account to another. This is useful when shares have to go from individual accounts to joint accounts. Also, your demat account is a single point for handling all your communication with customers and also for receiving all your corporate actions.