A Demat account (short for dematerialized account) is like a bank account—but for holding securities in electronic form instead of physical certificates. In India, these accounts are offered by Depository Participants (DPs)—banks or brokers—who act as intermediaries for the central depositories: NSDL and CDSL
📌 What is Dematerialization?
Dematerialisation is the process of converting physical share certificates (or bonds, mutual fund units, etc.) into electronic form held in your Demat account. This ensures:
- Elimination of risk from loss, theft, damage, or forgery of certificates
- Faster, paper-free trading and settlement
- Lower costs (no stamp-duty, courier, or storage charges)
- Better transparency, real-time portfolio tracking, and easy receipt of corporate benefits like dividends, bonus shares, rights issues, etc.
🔁 How Dematerialization Works
- Open a Demat account with a DP registered under NSDL/CDSL
- Fill out a Dematerialization Request Form (DRF) and surrender your physical certificates to the DP
- The DP forwards your DRF and certificates to the Registrar & Transfer Agent (RTA) of the issuing company.
- Once RTA verifies and approves, they notify the depository, which credits electronic shares to your Demat account.
- Physical certificates are destroyed, and the process usually takes 10–30 days
✅ How to Open a Demat Account with Angel One
Here’s a clean step-by-step guide:
1. Start the Application
- Go to Angel One’s website or app and click “Open Demat Account”
- Provide basic info – name, mobile number, city – then verify via OTP
2. Complete KYC & Upload Documents
- PAN card (mandatory)
- Proof of identity: Aadhaar, passport, driver’s license, or voter ID
- Proof of address: utility bill, bank statement, Aadhaar, etc.
- Bank proof: a canceled cheque or bank statement
- Income proof: required only for trading in currency/derivatives
e-KYC & IPV
- If your Aadhaar is linked to mobile, you can complete e‑KYC and e-sign digitally
- Otherwise, an in-person verification (IPV) via webcam or at a branch is required
Agreement & Activation
- Sign the DP agreement (digitally via e-sign or physically).
- Angel One acts as the DP for CDSL
- The account is usually activated within 24–72 hours, with full access in ~48 hrs
- You’ll receive a 16-digit Demat ID (BO ID) starting with Angel’s DP prefix “12033200…”
Link Trading & Bank Accounts
- Angel One issues a Trading account alongside the Demat account.
- Link your bank account for seamless fund transfers
💸 Charges & Features
- Account opening: Typically free with Angel One
- Annual maintenance (AMC): Nominal fee (~₹240/year), free for BSDA accounts under ₹50k holdings
- DP transaction charges: small per debit share movement
🧾 Post-Opening: What Happens Next?
- You’ll get monthly statements and can track holdings via Angel’s app
- To buy/sell, use the trading platform; trades settle via your Demat and bank accounts.
- You now own electronically held securities—no paperwork.
✅ Quick Recap
- Demat account = digital assets storage
- Angel One uses CDSL via DP ID 12033200
- Opening process is fully online, fast (24–72 hrs)
- Requires PAN + ID/address + bank proofs, optional income proof
- Free to open, small maintenance & transaction charges apply
