Demat account in the simplest term is the account, which is utilized to hold the securities in the dematerialized form. The concept was first introduced in India in the year of 1996 when the physical share certificates of the investors were converted into the electronic form to be simply stored in the demat account. You can simply deal with the Angel Broking Demat Account as it holds the mutual funds, shares, exchange-traded funds, and bonds as well.
Pros of Holding a Demat Account
- Hold your investments- If you are opting for the Angel Broking Demat Account, you would have to make sure that you research it before. The demat account offers you along with the central place for just holding the investments.
- Central depositories- The depository participants act as the intermediary, which assists you in accessing the central depositories. Banks, brokers, along with the institutions function as depository participants or commonly referred to as DP. The depository participants also provide some amenities to convert your physical instruments into electronic credit in your DP account.
- Updated automatically- The demat accounts come along with a wide range of added advantages which were otherwise not accessible in the physical storage of your investment record. Apart from just holding all your investments in one place, demat accounts are also updated inevitably every time you transact. Demat has also made the holding investment certificates risk-free as there are no such opportunities of physical damage or loss.
- Securities- While the overall cost of the transaction has just reduced, the safety and security of purchasing the mutual funds or any other instruments has increased. Along with the demat account, there are no probabilities of fake shares, thefts, or any other malpractices which were previously seen in the usage of paper as the mode of trading and investing. The efforts as well as the documents involved in the opening of a demat account are also comparatively lesser.
Why to invest in angel broking?
While dealing with the Angel Broking Demat Account, you would be ample amount of advantages.
- Lower risks: The physical securities are quite risky due to thefts, losses, or even damages. In addition, bad deliveries or even the fake securities pose further risks. These risks are totally eliminated with the opening of a Demat account and that offers the holders along with the option of holding all their investments in electronic form.
- Easy holding: Maintaining the physical certificates is a dull job. Furthermore, keeping track of their performance is a simple added responsibility. Demat account holders can simply make this more convenient to hold and then track all their investments through a single account.
- Odd lots: Along with the physical certificates, selling and buying were quite possible only in a particular quantity. The reliability and the convenience of dealing with odd lots or single security were also not obtainable. Demat accounts eliminate this issue.
- Reduced costs: The physical certificates involved numerous additional costs like the stamp duty, handling charges as well as some other expenses. The extra expenses are entirely eliminated with the Demat accounts.
- Reduced time: Due to a removal of some paperwork, the actual time needed in just completing the transaction gets reduced. The reduced time requirement allows the account holder to simply make more acquisitions and sales of security holdings in the shorter time and with greater competence.
Rights of a shareholder with dematerialised shares
Before the boom of technology, stocks and shares were traded and existed in papers. In recent times, the stocks and shares are kept electronically in the dematerialized form that is considered as DEMAT Account. It competently permits the purchasers to purchase, transact, or sell conveniently with no need for paperwork. The shareholders of demat or dematerialised shares have the right to:
- Receive rights, bonus, shares, etc. if declared as well as approved
- Receive annual reports or even any other periodical reports
- Receive dividends, if any, as accepted
- Receive notices, postal ballot forms, along with the explanatory statements of general meetings
- Participate and vote at general summits
- Demand statutory records and then documents for review during the working hours fixed by the company
- Demand poll on any kind of resolution at universal summits