How to Open Demat Account Online with Angel One
What is a Demat Account?
Initially, stocks and shares used to be exchanged via physical receipts called certificates. However, this resulted in lengthy paperwork and took up a lot of time. To counter this and to take advantage of an electronic trading platform which was gaining traction in West and the Asian Markets, the process of dematerialisation (demat) of shares was initiated in 1996. Physical share certificates were converted into electronic form securities of equivalent number and price and were credited to the investor’s demat account. Thus, the advent of trading commenced this way.
In a more simplistic approach, demat accounts allow the investor to buy and sell as well as transact not only shares and stocks but other products conveniently without the need of any sort of paperwork.
The Angel Demat Account Advantages
PRODUCTS TO TRADE USING ANGEL ONE DEMAT ACCOUNT
Easy to Hold
Since the securities are held in electronic form there is no storage risk involved. The DP is responsible for maintaining and safeguarding the investor’s account. An account is one of the easiest and securest forms of holding a securities account. The account also allows the investor to nominate their kin. Automatic transfer of the securities is carried out to the specified nominee.
In spite of the account being a common account for all the securities. The investor does not have to provide their details every time a transaction is carried out through the DP. The account linked to the investor with their Unique Id represents the investor and has all the particulars listed out. Thus, every transaction is automatically updated with the specifics.
Opening an account does not only aid in trading of shares. It also operates for debt instruments like bonds, NCDs, government securities, mutual funds, etc. An investor can hold all the investments in a single account.
The solution to Odd – Lot of shares
With the investor being able to open an account, the problem for investors to transact a single or an odd number of securities has been resolved. Historically, shares were sold in the market only in lots. However, today the investor can purchase or sell any number of shares without any conditions.
Delivery of Risks
One of the greatest benefits of a demat account is the electronic trading process. Initially, there was a high risk for fake shares, theft and wrong deliveries of the securities. The electronic system today will directly credit the securities to the investor’s account automatically, regardless of the quantity and amount of shares.
Presently, a demat account does not require stamp duty for securities. This has resulted in a substantial cost reduction for the investor. Previously the stamp duty was 0.5 percent for each share. However, that is completely eliminated through an account.