Describe any two benefits of dematerialized (Demat) account.
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
Two benefits of a Demat account are:
- Elimination of risks associated with physical certificates such as bad delivery, fake securities, and loss/theft of certificates.
- No stamp duty on transfer of securities, which reduces the overall transaction cost for investors.
Source: Chapter 6, Benefits of participation in a depository
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Explanation
The question asks for any two benefits, so pick two distinct points from the list provided. Examiners award 1 mark per valid benefit. State each benefit clearly with a brief explanation — don't just list one-word answers. Avoid repeating the same idea in different words.