What is Demat Account?

Demat Account came into existence in India in 1996, stocks and shares were issued and traded in physical paper form. With the age of computers and Technology, shares and securities are held electronically in a Dematerialized form (Demat Account), instead of the investor taking physical possession of certificates. It allows you to buy, sell as well as transact conveniently without the need of any paperwork. You can open demat account by registering with a Stock Broker like Angel Broking.

Is demat account necessary?

Nowadays, practically all trades are settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, however trading using a demat account is widely accepted, hence it is advisable to have a demat account for dealing in Stocks and Shares. .

Advantages of Demat Account?

  • Environment Friendly - Less of Paperwork since securities held in electronic form.
  • secure and convenient way to keep track of shares
  • Quick Settlement
  • Saves Time
  • No Storage Risk – Unlike paper certificates dematerialized stocks and shares can’t be stolen or damage
  • All in ONE - Trade in Equity, gold ETFs and commodity futures
  • Effective Management