Demat Account: What, How and Why ?

A Demat account is a repository that stores all the electronically or dematerialized purchased forms. Demat account to share is same as what bank account is to money. Demat account stores the certificates to the financial instruments owned such as shares, bonds, mutual funds, EFT’s, government securities, etc. Before Demat came into existence these financial instruments were issued and traded in physical paper forms, but after the introduction of Demat in 1997, the buying and selling of financial certificates became extremely easy as it can be done over the internet without indulging into the hassles of paperwork.

How does a Demat Account work?

1) Central Depository

This is a repository that holds the details of all the shareholding information. There are two depositories in India which hold all the information of Demat accounts, the NDS, and CDSL.

2) Unique ID

Each Demat account is associated to a unique ID which is to be provided for every transaction. This gives the exchange and companies the transparency in identifying an individual and perform transactions.

3) Depository Participants

They act as the intermediaries between central depository and investor. They can be in form of financial institutions, banks or brokers that have the authority to offer Demat services. Angel Broking is one such depository participant that can provide access to the central depository.

4) Portfolio Holding

All the securities are held in a Demat account and such details can be seen in portfolio holding. They are automatically updated whenever a transaction happens

Types of Demat Account

Repatriable Demat Account

Repatriable funds are the ones which can be transferred globally. The investments made from such funds are deposited in a separate bank account, the NRE Account (Non- Resident External)

Non-Repatriable funds

As opposed to Repatriable funds, these funds cannot be transferred out of the base country. The investment to these are deposited in an NRO Account (Non-Resident Ordinary) and the money can be transferred easily from an NRE to NRO account. However, once the investments are transferred to an NRO account, it loses the benefits of an NRE account and cannot be transferred back either.

Advantages of Demat Account

1. Hassle free with minimal paperwork as everything is held electronically
2. Secure way to keep track of shares
3. Quick settlement
4. Time-saving
5. No risks of being stolen, damaged or forge.
6. Trade in Equity, gold EFTs, and commodity futures

Angel Broking Online Demat Account

Angel Broking was incorporated in 1997 and now holds a position in top 3 retail broking house in India, It has memberships on BSE, NSE, NCDEX, and MCX and is also registered as a depository participant with CDSL.

How to Open Demat Account with Angel Broking

Demat account with Angel Broking is extremely simple, the account can be opened online, post which trading can be started in an hour!

On Angel Broking website enter your details, name, mobile number, email ID and nearest city. Next, provide necessary documents and post the detailed verification, the welcome kit is dispatched by broker containing details of username/password. These details can then be used to begin trading in the stock market.

Advantage of Demat Account with Angel Broking

1. Angel Broking is a reputed stock broking service since 1987.
2. It provides technology-enabled Demat and Trading account
3. 20% off on brokerage charges for all online transactions
4. Digital KYC process gives a jumpstart to begin trading seamlessly
5. Angel Broking’s dedicated research team and experienced professionals provides value added investment advice customized on basis of user needs.
6. Access is provided to multiple investment classes on ARQ powered secure and robust platforms.

One of the most awarded, secure and reputed stock broking houses in India, Angel broking provides a one stop platform to cater to trade in all the financial instruments, equity, gold EFTs and commodity futures. Having a demat account with this institution eliminates the risks associated with physical share/stock, allows holding of mutual funds and other such valuable financial instruments, and make transactions easier through. Further, Angel Swift, a trading application for smartphones can be downloaded that gives an overview of your holding while provisioning trade.