Dematerialized account or in short known as a Demat account is a type of account known for electronically holding of shares and securities. The whole process lets you access it from anywhere in the world. It handles all the investments altogether made by individuals in shares, government securities, exchange-traded funds, bonds and mutual funds.

A Demat account can be opened through DP (Depository Participant) of CDSL (Central Depository Services (India) Ltd). The whole process is as simple and similar to opening a bank account. Firstly, while opening a demat account, you need to choose a DP based on your convenience and its charges and then submit the filled account opening form.

Documents needed are the photocopy of the PAN (permanent account number) card, proof of identity and proof of address. These documents are to be submitted along with the account opening form. 

You are then called to check and verify the details provided by you in the form. Once done with the verification you are provided with a demat account number and ID.

Some Facts:

1) One can open multiple demat accounts.

2) No charges to open an account

3) You can have maximum 3 account holders.

4) You can have nil balance.

Advantages:

1) Since the shares are in electronic form, it helps lower the risk of thefts, losses, damages, bad deliveries or fake securities.

2) Maintaining electronic shares is very much easier compared to physical shares. Shares being electronic become more convenient to hold and track.

3) Demat accounts help ease the issue of Odd lots or single security by excreting it completely.

4) Since the Demat accounts are known for the electronic holding of shares, the extra costs involved in physical shares are just eliminated.

5) As there is no paperwork involved, it reduces your time that is required for a transaction.