Awareness of Demat system in India for general public

1) Introduction

We all know about savings accounts with banks. It allows easy access to our funds while
offering security from theft and mishandling. A Demat account does the same for investors.
Nowadays, the Demat account is a prerequisite for stock investment.

Demat Account is an account that is used to hold shares and securities in electronic format. The
full form of Demat account is a dematerialized account. The purpose of opening a Demat
account is to hold shares that have been bought or dematerialized (converted from physical to
electronic shares), thus making share trading easy for the users during online trading.

In India, depositories such as NSDL and CDSL provide Free Demat account services.
Intermediaries, depository participants or stockbrokers - like Zerodha - facilitate these services.
Each intermediary may have Demat account charges that vary as per volume held in the account,
type of subscription, and terms and conditions between a depository and a stockbroker.

1.2) What is a demat account ?

A Demat Account or Dematerialized Account provides the facility of holding shares and
securities in an electronic format. During online trading, shares are bought and held in a Demat
Account, thus, facilitating easy trade for the users. A Demat Account holds all the investments an
individual makes in shares, government securities, exchange-traded funds, bonds and mutual
funds in one place.

Demat enabled the digitization process of the Indian stock trading market and enforced better
governance by SEBI. In addition, the Demat account reduced the risks of storing, theft, damage,
and malpractices by storing securities in electronic format. It was first introduced in 1996 by
NSE. Initially, the account opening process was manual, and it took investors several days to get
it activated. Today, one can open a Demat account online in 5 mins. The end-to-end digital
process has contributed to popularizing Demat, which skyrocketed in the pandemic.

What is dematerialization?
Dematerialisation is the process of converting the physical share certificates into electronic form,
which is a lot easier to maintain and is accessible from anywhere throughout the world. An
investor who wants to trade online needs to open a Demat with a Depository Participant (DP).
The purpose of dematerialisation is to eliminate the need for the investor to hold physical share
certificates and facilitating a seamless tracking and monitoring of holdings.

Earlier, the share certificate issuance process was time-consuming and cumbersome, which
Demat has helped transform by speeding the entire process and storing security certificates in
digital format. Once your Demat account is active, you can convert paper certificates into digital
format by submitting all your physical securities along with a Dematerialization Request Form
(DRF). Also, remember to deface each physical certificate by mentioning ‘ Surrendered for
Dematerialization’ on it. You will receive an acknowledgement slip when you surrender your
share certificates.

1.3) Importance of Demat account

A Demat account provides a digitally secure and convenient way of holding shares and
securities. It eliminates theft, forgery, loss and damage of physical certificates. With a Demat
account, you can transfer securities immediately. Once the trade is approved, the shares are
digitally transferred to your account. Moreover, in case events like stock bonuses, mergers, etc.,
you get shares automatically into your account. Your Demat account information regarding these
activities is available online by simply logging into the website. You can trade on-the-go using
your smartphone or desktop. So, you needn’t visit the stock exchange to transact. You also enjoy
the benefit of reduced transaction costs because there is no stamp duty involved with the transfer
of shares. These features and benefits of a Demat account encourage a larger trade volume by
investors, thus increasing the potential for lucrative returns.

Demat account has made it easier to handle stocks. The Indian exchanges now follow the
settlement cycle of T+2 days facilitated by the Demat account. You pay the seller on the second
business day when you buy shares following the settlement cycle, and your Demat account gets
automatically credited with the purchased securities. Demat account has made the process of
security trading seamless and hassle-free.

Benefits of Demat account

• Seamless and fast transfer of shares

• Facilitates digitally secured storing of securities
• Eliminates theft, forgery, loss and damage of security certificates
• Easy tracking of trading activities
• All-time access
• Allows to add beneficiaries
• Automatic credit of bonus stocks, rights issues, split shares

1.4 ) Types of Demat account

While opening a Demat account, investors need to select a Demat account type that suits their
profile carefully. The most common type is a regular Demat account. Any Indian investor or
resident Indian can open a standard Demat account within a few minutes using an online account
opening process. Apart from the standard Demat account, there are two other types. Let's take a
look at them.

There are two types of Demat accounts—Repatriable Demat account and Non-repatriable Demat
account. Repatriable funds are deposited in a separate bank account known as the Non-Resident
External Account (NRE account). Repatriable funds are those funds which can be transferred
abroad. The investments made from these funds are maintained in a The Repatriable Demat
account holds the investments made from repatriable funds. On the other hand, non-repatriable
funds (funds which cannot be taken / transferred abroad) are deposited in a different bank
account known as the Non Resident Ordinary Account (NRO account).The Non-repairable
Demat account holds the investments made from non-repairable funds. Money can easily be
transferred from an NRE to an NRO account. However, once the transfer is made, the
reparability is lost and the money cannot be transferred back to the NRE account.
Types of Demat account
• Regular Demat account: Regular Demat account is for resident Indian investors who
want to trade in shares alone and need a storing for securities. The stocks get debited
from your Demat account when you sell and credited when you purchase during trading.
If you are trading in F&O, you don't need a Demat account because these contracts don't
need storage.
• Basic Services Demat Account: It is a new type of Demat account introduced by the
SEBI. These accounts don't have maintenance changes if the holding value is less than Rs
50,000. Between Rs 50,000 and 2 lakh, the changes are Rs 100. The new type of account
targets new investors who are yet to open a Demat account.
• Repatriable Demat Account: Non-resident Indian investors open a repatriable account
to transfer their earnings from the Indian market abroad. If you want to open a repatriable
account, you'll have to close your regular Demat account in India and open a non-resident
external account to receive payments.
• Non-repatriable account: This account is also for non-resident Indians, but it doesn't
allow fund transfer to foreign locations.

SEBI has made it mandatory for investors to have a Demat account. You can't trade in the Indian
stock exchange if you don't have a Demat. Update yourself on the account opening process,
charges, and select a trusted depository participant.

There is a list of documents needed to open a Demat account, including personal details and
bank/income details. Here is a list of the documents required.

• Proof of identity
• Proof of address
• Proof of income
• Proof of bank account
• PAN card
• Passport size photographs
• Aadhar card
The online method has made the account opening process simple. You can now set up a Demat
account by submitting documents and completing KYC online.

1.5) COMPANY PROFILE

ANGEL BROKING COMPANY BACKGROUND

Angel Broking was incorporated on 8 August 1996 as a private limited company. Later, Angel
Broking was incorporated as a wealth management, retail and corporate broking firm in
December, 1997. In November 1998, Angel Capital and Debt Market Ltd. gained membership
of National Stock Exchange as a legal entity.] The company opened its commodity broking
Division in April, 2004. In November 2007, Birla Sun Life Insurance joined hands with Angel
Broking for distribution of its insurance products. The International Finance Corporation bought
an 18% stake in Angel Broking for ₹152 crore (equivalent to ₹390 crore or US$52 million in
2020) in December 2007.[ The company opened an office in Karol Bagh, New Delhi in October
2012.

In January 2013, a probe found the company and two other entities involved in fraudulent and
unfair trade practices in transactions of shares of Sun Info ways during Feb-May 2001. As a
result, SEBI restrained from taking new clients for a period of two weeks. Angel filed an appeal
against the SEBI order which was dismissed by the Securities appellate tribunal. Angel Broking
began offered shares through an initial public offering in September 2020, and was listed on
the Bombay Stock Exchange and the National Stock Exchange on 5 October 2020.

On 22 April 2021, Angel Broking appointed Silicon Valley veteran Narayan Gangadhar as its
new CEO. The Board of Angel Broking approved changing the company's brand identity to
appeal to Gen Z and millennial investors on 29 May 2021. The company officially began using
the new Angel One branding and logo on 3 August 2021, while the company was formally
renamed as Angel One in September 2021
 OVERVIEW

At Angel One Limited (formerly known as Angel Broking Limited), a digital-first approach is
something that has always been deep rooted in our hearts. Right from the time we started our
operations, we have effectively leveraged technology to deliver our products, services, and class-
leading experience to our ever-expanding client base. And as one of the original trailblazers in
the stockbroking industry, we have been leading from the front for over two decades. For quite a
few years, we have been first-hand witnesses of the rise of a new age of young investors. In fact,
we were one of the first broking houses to recognize the evolving expectations of this set of
investors, which goes far beyond just mutual fund investments and stock trading and into the
realm of rule based investing trading. This led us to Angel One.

With the Angel One brand, the Company is transitioning into a new-age FinTech platform
capable of enabling millennials from new age India to meet their financial dreams. We’ll
continue to onboard customers digitally, deliver the most cutting-edge solutions at the comfort of
a mobile tap.

Over the years, we have become leaner yet stronger, and have been fruitfully tapping new
geographies and onboarding millions of new customers including tier-2 and tier-3 cities as well.
It’s no wonder then, that our Company is the largest listed retail broking house in India in terms
of active clients on NSE as of December 31, 2021.

Our popularity with millennials attests to the fact that we have penetrated deeper into the broking
industry with a range of digital products that remain unmatched in the industry. Our products
such as the ARQ Prime, Angel BEE and Smart Money have been received with tremendous
enthusiasm and millions of users are paving their way to a smarter, richer and better tomorrow.

We are a technology-led financial services company providing broking and advisory services,
margin funding, loans against shares (through one of our Subsidiaries, AFPL) and financial
products distribution to our clients under the brand “Angel One”. Our broking and allied services
are offered through (i) our online and digital platforms, and (ii) our network of over 16,000+
registered Authorised Persons (the “Authorised Persons”), as of December 31, 2021.

Angel One Limited (formerly known as Angel Broking Limited) is a member of the Bombay
Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock Exchange of India
(MSEI), NCDEX & MCX. Angel One Limited is also registered as a Depository Participant with
CDSL.

Mison

To create long term value of empowering individual investor through superior financial services
supported by culture based on highest level of teamwork efficiency and integrity .

Vision

• To provide best value for money to investor through innovative product

• Trading / investing strategies
• State of the art technology and personalized service

Customer promise

They are passionate about their customers success and promise to deliver exceptional service
with every meeting interaction and dealing this drive to offer simple straightforward friendly and
trustworthy service they are financial company with a different attitude

1.6) Our Offerings

Equities
 Commodities

Loans Against Shares

Currency

Equity Derivatives

Investor Education

Research Services

Investment Advisory
 Milestones

May 2009 Awarded with broking house with largest distribution

network and best retail broking house at done and breed
street equity broking about 2009
August 2008 Crossed 5,00,000 trading account
November 2007 major volume drive for major volume drive for 2007
March 2007 Crossed 2,00,000 trading accounts
December 2006 created 2500 business Created 2500 business associates
October 2006 major volume drive for award 2006
September 2006 launched mutual fund and IPO business
July 2006 Launched the PMS function
March 2006 crossed 1,00,000 trading accounts
October 2005 major volume drive award for 2005
September 2004 launched online trading platform
April 2004 initiated commodities broking division
April 2003 First published research report
November 2002 Angel first investors seminar
march 2002 developed web enable black office software
November 1998 Angel capital and debt market limited incorporated
December 1997 Angel broking limited incorporated
 1.2) AWARDS
2020

• Angel Broking Ltd bags Silver Award for Digital Marketing Excellence in Social
Media (BFSI)' by DIGIXX 2020 for # ShagunkeShares Campaign
• Angel Broking Ltd bags Silver Award for Digital Marketing Excellence in Video
(financial Services) by DIGIXX 2020 for # ShagunkeShares Campaign
• Angel Broking Ltd was awarded as'Mobile Advertising Excellence in Use of Video
(BFSI) for Smart Sauda Campaign at MOBEXX Awards by Adgully
• Angel Broking Ltd was awarded as Mobile Advertising Excellence in Social Media Campaign
(BFSI) for Smart Sauda Campaign at MOBEXX Awards by Ad gully

• Angel Broking Ltd bags Gold Award in Customer Service Effectiveness at the 9th
Global Customer Engagement Awards 2020 by ACEF for ORM
• Angel Broking Ltd bags by Silver Award in Digital Marketing for Successful use of
Technology for Smart Sauda Campaign at the 9th Global Customer Engagement Awards
2020 by ACEF

• Angel Broking Ltd bags Gold Award in Data Driven Marketing for Successful use of
Technology for Smart Sauda Campaign at the 9th Global Customer Engagement
Awards 2020 by ACEF
• Angel Broking Ltd was awarded for Content in Search Marketing Campaign – Special
Mention by Inkspell in India Content Leadership Awards 2020
• Angel Broking Ltd was awarded for Financial Content of the Decade – Consumer
Education Initiative by Inkspell at The Decade Awards 2020

• Angel Broking Ltd bags Content in Search Marketing Campaign – Consumer

Education Initiative by Inkspell at MCube Award
• Angel Broking Ltd bags Silver Award for PR Awards 2020 for Reimagining Stock
Broking For The Millennial India Organised by Campaign India
• Angel Broking Ltd bags Gold in the BFSI Sector by BuzzIn Content
 2021

• Angel Broking Ltd was awarded for 'Best Customer Education Initiative in the Equity
Broking Sector at Resulticks BFSI Digital Stallions Awards
• Angel Broking Ltd was awarded for 'Best Search Engine Optimization in the Equity
Broking Sector at Resulticks BFSI Digital Stallions Awards
• Angel Broking Ltd bags Silver in Most Consistent Excellence in Digital Publishing of Content by
India Digital Awards, IAMAI
• Gold Trophy for the Best Fintech Marketing Campaign (PR Category) at the IPRCCA
• Social Media Campaign of the Year for #ShagunKeShares by DigiGrad
• Bronze for Best Content Marketing in BFSI sector by DigiXX 2021
• Silver for Best Use of Organic Search by Digixx 2021
• Silver for Insights & Research in BFSI sector by DigiXX 2021

BOARD OF DIRECTORS

Mr. Dinesh D. Thakkar

CHAIRMAN AND MANAGING DIRECTOR

Mr. Uday Sankar Roy

INDEPENDENT DIRECTOR

Mr. Kamalji Sahay

INDEPENDENT DIRECTOR

Mr. Ketan Shah

WHOLE TIME DIRECTOR

Mr. Muralidharan Ramachandran

INDEPENDENT DIRECTOR

Mr. Krishna Iyer

 NON-EXECUTIVE DIRECTOR

Ms. Mala Todarwal

ADDITIONAL NON-EXECUTIVE WOMEN INDEPENDENT DIRECTOR

2. Angel One Branches in India

Angel Broking Limited is one of the largest independent full-service retail broking houses in
India. The technology-led financial services company, provides broking and advisory services,
margin funding, loans against shares and financial product distribution to our clients. Angel One
services are offered through online and digital platforms. Our network of more than 11,000
Authorised Persons, as of June 30, 2020. Angel One Mobile app enables our clients to avail of
our services digitally. We have a pan India presence of 18,649 pincodes as of June 30, 2020.

Angel Broking Limited is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE), Metropolitan Stock Exchange of India (MSEI), NCDEX & MCX. Angel
Broking Limited is also registered as a Depository Participant with CDSL

Our experience of over two decades has helped us to integrate our knowledge and expertise in
the broking industry with the technology we provide to our retail clients through various
platforms. With the advancements in technology and digitalization, we have enhanced client
engagement and experience for all our services. Our client onboarding process is completely
digitalized since 2015.