Eliminate paper format shares with Dematerialization
Storing shares in the physical format is often a challenging process. Physical share certificates are often lost or misplaced which necessitates the introduction of an electronic or digital form.
What is Dematerialization?
The process of dematerialization converts your physical securities and shares into electronic or figural form. The basic motive is to simplify the procedure of buying, transferring, selling, or holding shares of a company. It also makes the purchase or sale of shares full-proof and cost-effective.
Storing your securities and shares in digital or electronic form will eliminate the need for physical certificates.
Need for Dematerialization
Safeguarding your paper-based share documents is often challenging. With the number of paper documents piling up each day it becomes impossible to keep track of them all. Moreover transferring shares in a physical form will impose a 0.5% stamp duty.
Saving your share certificates in a dematerialized form also enables you to save money and time as it eliminates the chance of misplaced certificates. You will receive all bonuses and credits right into your Demat account without any chance of credit loss in transit. Infiny Solutions will allow you to quickly open a Demat account without much hassle.
Process of Dematerialization?
The process of Dematerialization gets streamlined when you work with reliable firms like Infiny Solutions. The princess includes the following steps —
- Choose a depository participant (DP): You need to opt for a brokerages services firm or financial institution. These are known as depository participants.
- Fill in the opening form of a Demat account: You need to fill in the basic contact details and other relevant information for opening a Demat account.
- Submit the required documents: You are required to submit a copy of the following —
- Income proof
- Address proof
- Identity proof
- Active bank account details
- Passport-sized photograph
- The signing of an agreement and document verification: You are required to sign an agreement containing the charges to be incurred, rules and regulations, terms and conditions, etc. A member of the DP will verify your documents.
- Generation of Demat ID and account number: Infiny Solutions will ensure that your documents get duly verified. After the verification process, your Demat ID and account number will be generated.
Is Dematerialization the right option for you?
There are various benefits of opening your Demat account with the help of Infiny Solutions. Dematerialization of shares will offer the following advantages —
Easy and Smart
A Demat account allows shareholders to carry out the share transactions digitally or electronically. You need to visit the broker each time for the settlement of transactions. You can easily convert the physical shareholdings into a digital format.
There is no need for paper documents in a Demat account. It benefits both the companies and shareholders. While it prevents the risk of share certificates getting misplaced, it allows companies to cut down their administrative costs.
You can monitor your entire portfolio at the comfort of your home by opening a Demat account. It builds flexibility and security in security transactions.