01

Advantages of Opening a Demat Account

• Convenience: Users can now trade for different investment options such as shares, stocks, index and gold, bonds, Government securities, initial public offerings(IPOs), Exchange traded funds (ETFs), non-convertible debentures(NCDs), mutual funds, etc which are traded on Indian exchanges (BSE/NSE) via a single Demat account with zero paperwork.
• Restrictions with Offline Trading: SEBI has permitted trading of upto 500 shares in physical form, as includes an excessive inconvenience of maintenance and tracking.
• Auto Sync: All the transactions done via Demat Account are automatically reflected in real time.
• Security: Investors need not worry about the safety of the physical share holdings or any frauds that might happen in offline trading.
• Accessibility: Investors can track and access their portfolios in real time with just a few clicks.
• Zero Balance Account Opening: Investors can open a Demat account with Zero balance.

02

Common Terms of a Demat Account

While using a Demat Account, you will come across the below terms often:

• Depository: At present, two depositories are registered with SEBI (i) CDSL - Central Depository of Securities Ltd. (ii) NSDL - National Depository of Securities Ltd. These depositories hold your demat account on your behalf. The work is similar to that of a bank.
• Depository Participant(s)(DP): All investors deal with the depository (CDSL/NSDL) through an agent. Financial institutions, scheduled commercial banks, foreign banks having operations in India approved by RBI (Reserve bank of India), stock brokers, clearing corporations or houses, state financial corporations, NBFCs, share transfer agent, etc., which comply with the conditions proposed by SEBI can be registered as a DP. Banking services can be availed through a branch; similarly depository services can be availed via a DP.
• Portfolio Holding: The demat account enables you to view your portfolio holdings of investments every time a transaction is undertaken. Since it is an automated process every purchase and sale is recorded with the minutest details of price, date of purchase or date of purchase, quantity etc.
• Unique ID: Every single demat account has a unique verification identity number. This is used during transactions to aid the companies to identify and credit the securities in the specific investor's account. It is a unique 16 digit number, the first eight digits are the DP id, and the last 8 are the Client Id ( investor account).

03

Trading Options via Angel One Demat Account:

Stock Investments: Buy/sell Stocks of listed companies in Indian stock exchanges (BSE/NSE)
Intraday Trading: Buy/ sell stocks of listed companies with Intraday trading and enjoy short term investment returns
IPO: Bid for your favourite brands/ companies in their initial public offerings
Mutual Funds: Invest in Mutual funds managed by renowned fund managers
Futures & Options: Invest in Futures & Options. Leverage market volatility with Futures or enjoy a no obligation deal with options
Currency Trading: Invest in different currencies via Currency trading or Forex trading
Commodity Trading: Invest in commodity exchanges like MCX, NCDEX, NMCE, and ACE.
Margin Trading: Enjoy upto 5x margin with Angel One Demat Account
ETF: Buy/sell Exchange Traded Funds with Angel One

04

How to Open Demat Account with Angel One

Demat Account Opening is an easy process with these simple steps :

• Step 1: Submit your personal details like Name, Mobile, Current City and verify mobile number via OTP
• Step 2: Choose a Depository Participant (DP) to open the account with. A beneficial owner (BO ) account is opened with the depository.
• Step 3: Complete eKYC and upload the supporting documentation copies of proof of address, proof of identity, proof of income etc. PAN card is mandatory to open the account.
• Step 4: You will be provided with a copy of the rules and regulations as well as the necessary charges to be paid to your DP. An in-person verification will be conducted by a representative of the DP to confirm all the details and documentation provided by the investor.
• Step 5: Once approved and documentation is submitted, your Demat account is opened and operational.

05

Facilities Offered by a Demat Account

Demat account opening offers a wide range of facilities for the investor. Let us look at a few of them below:

• Transfer of Investments: A demat account aids the transfer of shares of an investor. By filling in a Delivery Instruction Slip ( DIS ) with all the relevant investor specifics, it enables an effortless transfer of shares. However, it is not only limited to shares, but various investments or security holding can also be transferred through such an account.
• Dematerialisation and Rematerialisation: A demat account assists the conversion of securities into different formats easily. By instructing your DP (depository participant) for dematerialisation, to carry out the formalities to convert the physical share certificate into an electronic form. On the other hand, the investor can get their electronic security holding converted back to the physical form via the process of Rematerialization, wherein an RRF - Remat Request form is to be filled in by the DP.
• Loan Facility: the securities held in the account can provide the investors with their exact and detailed holding to enable them to apply for a loan from a bank or financial institution. The securities can be provided as collateral towards the loan.
• Corporate Actions: Such accounts assist the investor in tracking and maintaining their securities. This is specifically required to monitor split of any equity shares, bonus issues or any other action taken by the companies for their shareholders. These are directly updated in the account.
• Freezing your demat account: Investors are provided with the option to freeze their accounts for a specific period or as per requirement. At times this is undertaken to prevent unexpected activities in the account. However, to avail this facility a particular amount of shares should be present in the investor's account.
• Speed E- facility: NSDL has provided an electronic facility for their investors to complete a transaction through the submission of an e-slip which is then sent to their DP.

Angel One services provide all of the above mentioned demat facilities to their investors and more convenient and easy methods for trading.

06

Things to know before opening a Demat account

The current online account opening process has made it really simple to open Demat account. In fact, in the current system, you don't even have to visit the broker's office for account opening. You can simply fill in the electronic form, update mobile number and email id, and complete KYC compliance with a preferred DP and get a Demat account open under an hour. But as an informed investor, you must be aware of the following.

Documents needed for Demat: You need a list of documents to complete the KYC process. It includes:

• • Identification Proof:
  • Voter Identity Card
  • Aadhaar Card
  • PAN Card with photograph
  • Passport
  • Driving Licence
  • College Identity cards

• • Address proof:
  • Latest electricity/ telephone/ post-paid cell phone/ gas pipeline/ water bill
  • Bank account statement
  • Land Receipt
  • Ration Card

• • Bank account details
  • You will get a list of documents required for account opening from the DP. Make sure you provide the correct documents to avoid your application getting rejected.
  • Charges: There is an array of fees collected by the broker, ranging from taxes levied by SEBI to operational fees. Charges are a crucial metric to select the right broking house since these are additional costs you would need to bear along with capital fund investment.
  • Linking Demat: You need a trading account, linked to your Demat, to carry out trading. You can have trading and Demat accounts with separate broking houses. But it adds to the process requirement of transferring scrips from one account to another and transaction time. For faster and more seamless transactions, you may open both the accounts with the same broker.
  • File nomination: Registering nominee to your Demat saves a lot of time and hassle in the future. It is an important step that we often ignore. However, we suggest naming a nominee for your account while opening the Demat.

07

Additional Features Of Demat Account

These are some of the additional benefits you can enjoy with a Demat account.

Consolidation: It is possible to consolidate different portfolios of the same company to create a new portfolio. You can forward the physical certificates with a letter duly signed seeking consolidation to the RSTA of the company.
Account types: Demat account can take different forms, just like a bank account. You can open a joint Demat account, or in the name of a corporation, multiple accounts, and even in the name of a minor. However, a minor's Demat account will need a guardian to operate the account.
Transaction Charges: Opening a Demat account comes with its fair share of charges which would involve an annual maintenance fee, a transaction fee or commission for every transaction carried out by the DP. Additionally, depending on the DP a fee may be charged for dematerialisation of the shares. But on the brighter side, there are no mandates to sustain a minimum balance. Such accounts can be opened without holding any securities.