Is there any benefit to convert physical shares to demat?




Those who want to directly benefit from a thriving economy, often invest in the stock market. Apart from shares, they invest their hard-earned money in a mutual fund, commodities, bonds, and so on. People are using the economic expansion of a country to make some money for years. But, with the advent of the internet, even stocks are being dematerialized. Nowadays, physical share certificates are no longer in vogue. They have been replaced with electronic dematerialized shares. Still today, there are plenty of physical share certificates which have not been converted to their electronic form. 

Is there any benefit to converting physical shares to Demat?

Yes, there are many. Let's discuss those benefits in detail through the following points. 

  • Convenience- The online Demat account helps you to buy and sell shares pretty easily. You just need to have a proper internet connection at your home with a good quality smartphone or laptop. If you convert the physical share certificates to electronic format, you don't have to visit the broker's office to check on your share portfolio.

  • Fund transfer- The online Demat accounts have made it pretty easy for the shareholders to transfer funds to their accounts for purchasing shares. They can link their bank account to the online Demat account post dematerialization of their physical shares. This will make future transactions pretty fast. 

  • Safety and Security- Your online Demat account will remain password protected. So, evidently, these accounts are much safer than physical share certificates. No one can steal or damage electronic shares like the earlier physical share certificates. With the online Demat account, there is no chance of forging share documents at all. 

  • Nomination facility- Unlike the physical share certificates, in the case of an online Demat account you can provide the name of a nominee for your account. The nominee will be able to operate your account in your absence this way. 

  • Paperless- The process of dematerialization has made the system of stock transactions paperless completely. As a result, you can trade your stocks from wherever you want at your desired time. 

  • Monitoring- With the help of an online Demat account, it is pretty easy to monitor your portfolio all the time. When you place an order for a share, you will be able to see the share status in the position section of your Demat account. 

Today, there are various financial recovery organizations that are helping shareholders to convert their physical share certificates to electronic forms. They provide other services as well. These services are iepf share transfer, assistance with unclaimed dividends, recovery of provident fund, recovery of matured insurance, bank account recovery, debtor recovery, and so on. For performing these recovery services, the financial solution company will ask for some service charges in return.

Location: South Extension, Block B, South Extension II, New Delhi, Delhi 110049, India

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