What is Demat Account, why you need it and advantages


Demat Account provides an option of handling the shares and securities in an electric format. At times of online trading, these shares are kept in a separate demat account. Demat account is used to facilitate easy trading and provide flexibility for the users. A demat account can handle all types of investments like government securities, shares, exchange trading funds, mutual funds in a single interface.

Angel Broking is a company know for opening an demat account with a proper set of security. They also provide services like trading account and best stock advisory and many more.

Dematerialisation and rematerialization of Shares


The way toward changing over physical securities like stocks, shares,  bonds, common reserve units, debentures, and so on into electronic aspect is comprehended as dematerialization.

Dematerialisation shares adaptability alongside security and accommodation. Holding share authentications in physical configuration uttered threats like endorsement falsifications, loss of imperative shares certificates, and subsequent manners in declaration exchanges. Dematerialisation dispenses with these issues by enabling customers to change over their physical declarations into the electronic form.


The way toward changing over the electronic property of securities is apprehended as rematerialization.

The methodology of rematerialization includes the accompanying advances like:

The account owner needs to top off the RRF(Remat Request Form) and submit it to DP. In the wake of checking the demand, the DP pushes then to the store, issues a marked and stamped acknowledgment to the account holder. The NSDL or CDSL depository at that point affirms this demand to the organization’s STA(Share Transfer Agents).

From there on, the STA prints these endorsements and sends it to the account holder and send an affirmation to the respective depository.

The Depository Participant sends a rematerialization suggestion to the holder from there.

The features of demat account:

Quick dematerialization & rematerialization of securities

The account holder can instruct to their DP to change physical documents into the electronic forms. All the electronic securities can be reconverted into the physical forms if needed. Either the Angel Broking Demat Account holder nor any other demat account holder can have all the features mentioned below:

Easy share transfers

Investors are allowed to transfer their accounts and securities through DIS or RIS for selling and buying the shares. These allow users while executing the transactions effectively.

Pledging ability to avail loan

Many sellers and lenders are available in providing the loans to overcome securities that are with the borrowers and thereby these are used to avail loans collaterally.

Suspending Demat accounts

IN cases of emergency the demat account holders can hold their accounts which is beneficial in case of preventing the unexpected credit or debit into the account. This option is available for the specific portion of securities.

Similarly, there are many features that are varied according to the state and depositories where the account has been created.

Need for having a demat account:

Banks ensure that they give basic administrations in each edge of the nation. In this way, everybody knows about how bank capacities and what administrations they give.

A demat account resembles a financial balance. A ledger holds cash of the account holder and a demat account holds securities. These securities can be as shares of an organization, securities, trade exchanged assets or shared assets. Demat account empowers the holder to store shares in an electronic form. Investors hold offers and securities in a dematerialized account rather than physical endorsements.

For placing resources into stocks, it is important to have a demat account. It can be opened with Depository Participants (DP). Depository Participants are those associations that empower contact among investors and depositories. There are two types enlisted with SEBI – NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Demat account is held with a Depository Participant.

Depository Participant is a dealer who illuminates the necessities, terms, expenses, and so forth to keep up a demat account with them. An investor would conform to every one of the necessities and open an account with the DP.

Here are the means counted to open a demat account:

  1. Approach a Depository Participant
  2. Fill the required forms and present the documents
  3. On the finish of this procedure, the account number is created
  4. Access the demat account

The general benefits and advantages of the Demat system:

For those who use the demat account for shares and securities the benefits are listed below:

  1. Immediately the securities can be transferred.
  2. Convenient and easy for holding the securities.
  3. For transfer of securities, there is no need for stamp duty.
  4. It is safer than paper shares that associate physical certificates like fake securities, bad delivery, thefts and more.
  5. Using demat account can reduce the cost of the transaction.
  6. There is no odd lot problem, one single share can also be held and sold.
  7. Change in the recorded address with a Depository Participant (DP) gets enrolled with all organizations in which the investor holds securities wiping out the need to compare with every one of them independently.
  8. Using DP transmission of securities is done eliminating the need of notifying the companies.
  9. It provides an automatic credit for all the shares that arises out of bonus/merger/consolidation and so on.
  10. From anywhere any trader can work effectively even from the home.
  11. Any demat account can hold shares and investments in equity and debt instruments.


The benefit to any company

The depository system assists in decreasing the cost of distinct issues due to distribution costs and lower printing. It improves the performance of the registrars, transfer agents,  and the company’s secretarial department. It presents better amenities for timely service and communication to investors and shareholders.

The benefit to the investor

The depository structure lessens dangers associated with holding physical certificates, e.g., misfortune, robbery, mutilation, falsification, and so on. It guarantees exchange settlements and decreases delay in the registration of shares. It guarantees quicker correspondence to investors. It maintains a strategic distance from terrible delivery issues because of signature contrasts, and so forth. It guarantees quicker installment on the sale of shares. No stamp obligation is paid on exchange of shares. It gives greater worthiness and liquidity of securities.

The benefits to the brokers

It decreases the risk of late settlements. It guarantees a higher profit on behalf of the huge increase in the trade volume. It reduces the chances of bad delivery fraud. It improves overall profitability and trading. It builds confidence in the investors.


Hopefully, every individual who wants to make their accounts and savings safe and protected. So it is suggested for everyone to have a demat account to maintain the shares and depositories with an utmost security and have a willingness that there is no bother and worry about unnecessary frauds.