1. It keeps custody of investors’holdings.
2. It eliminates the risk involved with the theft, forgery, damages of certificates.
3. It reduces the brokerage charges.
4. It reduces time required to clear each transaction as there is no paperwork involved.
5. It helps the investors to apply for new issues, as present public issues are taking place only DEMAT mode.
6. Company pays a dividend to the investors into their bank account registered in the DEMAT account
7. All benefits like right issues, bonus shares are paid directly into investors' DEMAT accounts.
8. Stamp duty is not applicable for transfer of securities in DEMAT mode.
9. It enables e-banking to investors. Investors can buy or sell shares through internet.
10. The procedure of pledging DEMAT shares is easy to raise money from leaders.