When Anil wanted to buy a few shares, he was told about the need to open a DEMAT (Dematerialised) account. Being a complete novice in the field, Anil had to consult with his financial adviser to understand how such an account worked. Thankfully, his adviser, who was a true expert and with many years of experience in the area of stocks and shares, was able to explain the dynamics very clearly to Anil. Anil then proceeded to open the account with his own bank, though he had the option of opening a Demat account with other broker too. The decision proved to be a wise one and today Anil has a growing fortune thanks to a well-managed Demat account.
In this article we tell you all about the way in which the Demat account works and why it is important to choose a good financial institution like SBI to do business with. Take a look.
What is a demat account?
When you buy a stock or a share in India, unlike the earlier days, you are not given physical copies of the documents. Rather, the electronic versions of the documents are stored in a dematerialized within what are known as Demat accounts.
Where can you open a Demat account?
Many Indian banks offer demat services. Apart from this, brokerage firms also allow you to have demat accounts with them. State Bank of India is one of the banks that offer the demat services in India. SBI Cap Securities is the subsidiary of the State Bank of India that handles its demat services.
What are the advantages of opening an SBI demat account?
It is very simple to open a demat account with the State Bank of India. State Bank of India, or SBI, as it is commonly known, is one of the most trusted names in the Indian financial markets. Rightly known as the banker to every Indian, SBI is a very reliable institution to bank upon. You can safely open a demat account in SBI Cap Securities and carry out your trading transactions through the demat account. The brokerage fees are rational. This makes it very profitable for you to do business with the State Bank of India. You do not end up paying a large part of your profits as brokerage fees. This is one of the main reasons why many people choose the State Bank of India as their preferred demat account option.
Then, there is also a lot of transparency in the way SBI Cap Securities deal with your money. There are designated relationship managers who help you out at every step. You can rest assured that the money you invest in the stock market through the SBI demat account will always be utilised properly and you will get the best possible returns under the given circumstances.