1. DEMATERIALIZED FORM IS ALWAYS BETTER - Shares and securities in physical form aren't flexible enough for different trading activities whereas the same shares and securities in a dematerialized form become way too flexible and are eligible for those various trading activities thus, the dematerialized form is always better than the physical form. In the points below, we understand the different ways how it is better.

2. HOLDING SHARES AND SECURITIES MADE EASY - Business or trade cycles generally cause great fluctuations in the form of booms and depression as well as upswings and downswings, in such cases it becomes a difficult and tricky situation for a shareholder to hold his shares and securities. During a boom period, seeing a profitable state the shareholder might be tempted to hold his shares and securities for some more time in order to earn more profits, this is made easier by a Demat Account. Hence, a Demat Account provides easy and convenient options for holding shares and securities.

3. TRANSFER OF SHARES AND SECURITIES MADE EASY TOO - In the case of physical shares and securities, the transfer process seemed to be a bit complicated and time taking as it required to fulfil a lot of formalities which further delayed the transfer process. However, through a Demat Account, one can easily transfer his shares or securities to anyone anywhere with just a click of a button.

4. ZERO STAMP DUTY ON TRANSFER - Transfer of physical shares and securities would require a stamp duty of 0.5% on the total value, however this cost can be reduced when one opts for the dematerialized form of shares and securities wherein neither the transferor nor the receiver needs to pay any sort of stamp duty for the transfer process. This way one can save the cost spent on stamp duty.