Why Open Demat Account with AngelOne
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.
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).
FAQs
- Regular Demat account- Traders who reside in India use this type of account.
- Repatriable Demat account - This account is useful to the Non-Resident Indians as it allows fund transfers abroad. It requires an associated NRE bank account.
- Non- Repatriable Demat account - This account, too, is for the Non-Resident Indians. However, in this case, funds cannot be transferred abroad, and this account requires an associated NRO bank account.
Yes, the Demat account opening is free of cost. However, there a few additional charges.
- An Annual Maintenance Charge or AMC. Pay Rs 0 during the first year and after that, only Rs 20 per month + taxes.
- A one-time charge of Rs. 50/- for POA + taxes
- Rs. 36/- for KRA along with applicable service taxes.
Account opening with Angel One is a 100% paperless process. Following are the documents that are required for opening an account.
Proof of Identity Documents
- Pancard
- Passport
- Voter ID
- Driving License
Proof of Address Documents
- Passport
- Voter ID
- Registered Lease or Sale Agreement
- Driving License
- Utility Bills
- Bank Passbook
- Demat Account - An account where you can hold securities in an electronic form, from which credit and debit of securities take place.
- Trading Account - An account which you can use for buying and selling the securities held in electronic format in the stock market.
- Demat + Trading Account - An account where you can hold securities in an electronic format and can be bought or sold in the stock market.
Any individual who is a resident of India with the required proof of identification, proof of address, proof of income can open a demat account to purchase and sell securities and other instruments through the stock exchanges in India.
- Less paperwork since securities held in electronic form & no hassle for the customer.
- Secure and convenient way to keep track of shares
- Quick transfer of shares
- Easy holding no storage risk – Unlike paper certificates dematerialized stocks and shares can’t be stolen or damage or forged.
Yes, an NRI can open a demat account; however, rules of FEMA – Foreign Exchange Management Act will be applicable.
As per Reserve Bank of India (RBI), an NRI can only own up to 5 % of the paid – up capital in an Indian registered company. An NRI can invest in IPOs – Initial Public Offers, however, it is based on a repatriable basis using the NRE demat funds through their NRE (Non-Resident External) Rupee bank account. Nevertheless, if the NRI invests on a non-repatriable basis, then their NRO (Non-Resident Ordinary) Rupee account and NRO demat account will be operated.
Through the PINS – Portfolio Investment Scheme an NRI is permitted to transact in shares and mutual funds through their account in India.
Yes, nomination facility is available in demat account.
It is advisable for all individual beneficial owners to avail of this facility. Resident Individuals, NRIs presently having or opening new accounts either singly or jointly can appoint a nominee. If the account is held jointly all the joint account holders are required to sign the nomination form. The nomination can be changed or updated as and when required. However, Non-individuals including society, Karta of Hindu Undivided Family, Trust, corporate body or holder of power of attorney cannot nominate.
Yes, multiple demat accounts can be opened by an investor. An investor can open more than one account in the same name with the same DP as well as with various other DPs. However, for all accounts, the investor is required to strictly comply with the KYC regulations and provide Proof of Identity, Proof of Address and other documentation proofs as stipulated by SEBI. The PAN card of the investor is mandatory and is required to be furnished at the time of setting up the account.
Yes, a demat account can be opened jointly. However, a demat account can have a maximum of three account holders that is one main holder and two joint account holders
Yes, a demat account can be transferred from one DP to another DP. The investor is required to submit the transfer or closure request to his DP in the prescribed form. The said DP would transfer all the securities and investments presently in the account as per the investor’s instructions to the new DP account.
An investor is given the option to apply for and obtain the shares of an IPO in physical form. However, it is suitable to apply for an IPO through the demat form since the shares issued through an IPO are tradeable only in form
No, a demat account is mainly for the transaction of shares on the stock exchange. Mutual fund investments of any kind including SIP can be carried out directly by the investor or through a bank or financial institution.
Demat account stands for the dematerialised account used for holding any form of financial securities in electronic format. Investors use a Demat account to hold equity shares, bonds, debentures, mutual funds, ETFs, government securities, and more. It facilitates managing and monitoring all financial securities in one place and quickens the buying and selling process.
Mutual fund investors have the option to transfer MF units to a Demat account. It simplifies the process of managing all financial securities in one place.
Investors can apply to convert mutual fund units into Demat format by availing a conversion request form from the broker or depository (CDSL or NSDL)
Demat account, as such, doesn’t hold money. If you have linked your bank account with the Demat, then the sales proceeds of an asset from the Demat account will be credited directly to your bank account.
To receive delivery of IPO shares a Demat account is a prerequisite.
Investors can open a Demat account by submitting PAN, Aadhaar, Address and Identity proof, along with bank account details.
Since the whole process has become digital, one can open and activate a Demat account within 24 hours. Don’t miss an opportunity to apply for the best IPO offers. Get an Angel One Demat account today!
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