123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What Is Demat Account

By Author: Rakesh Sharma
Total Articles: 5

Share market is an ultimate platform to grow and to build wealth over time and unlimited profits. But to trade and invest in share market, the investor must have a basic knowledge and understanding about the stock market i.e. what is stock market, what are the parties involved, what is traded in the stock market, how to trade, what is the right time to trade, etc.
Before indulging in learning about the techniques and theories of the market. Let us learn what is demat account in this article.
Prior your investment or trade in the market, demat account has to be opened with a Depository participant which can be a bank, a broker or a financial institution. Once the demat account is opened by any of the parties a demat account number is generated and provided to you. All the securities you buy or sell in the stock market directly reflect in this account.
You can open an account as per your requirement:

Single holder
Joint holder
Multiple holders

In case, the account is opened for a minor who is not 18 years old, then it is important to appoint a guardian to handle and look over all the transactions.
How does demat account work?
There are two depositories in India through which the shares are held by various depository participants:

National Securities Depositories Limited(NSDL)
Central Depository Services Limited(CDSL)

Buying of shares: The broker credits the shares to your demat account and these get reflected in your holding statement. Even the investor can view their holdings online if he/she uses an online trading platform. Basically, the shares get credited by the broker on T+2 that is trading day+ 2 days after that.
Selling of shares: While selling of shares, you need to share a Delivery Instruction Slip(DIS) to the broker wherein the various details of the stock sold are to be filled. The shares are debited from the account and the amount is credited to your account. In case you are trading online the account will automatically reflect your holdings.
Benefits of holding a demat account:

No worries in keeping physical shares, as demat accounts hold your shares in electronic form
No odd lot issues, minimum one share can also be purchased and sold
No transfer deed required

Open a demat account and experience the path of wealth creation.

Total Views: 31Word Count: 373See All articles From Author

Investing / Finance Articles

1. Everything You Need To Know About Fcnr Account
Author: Arjit Chalmela

2. How Does Loan Tenure Impact Personal Loan Emi?
Author: Arjit Chalmela

3. Learn From Oregon Credit Unions
Author: Sarah Addyson

4. Advantages Of Working With Oregon Credit Unions
Author: Sarah Addyson

5. Digipe - One Stop Solution For B2b Digital & Financial Services ( Micro Atm, Mini Atm, Cash At Pos,
Author: DigiPe

6. Where Is The Uk’s Second City For Property Investment?
Author: Graham Flaherty

7. Bank Dsa Registration Process Explained With Us!
Author: Deals of loan

8. How To Protect Your Binance Login Details From Phishing?
Author: Marry Dona

9. How To Become An Expert At Cryptocurrency Trading?
Author: Sanchit

10. How To Incorporate Offshore Company In Hong Kong Through Legal Agencies
Author: Hong Kong is a good prospect for entrepreneur....

11. Steps For Getting Hard Money Loan Approval: Get Funded Easily!
Author: alex arnold

12. All You Need To Know About Business Management Courses
Author: Teresa Mathews

13. Why You Should Hire The Services Of Mortgage Broker As A First-time Home Buyer?
Author: Khub Ram

14. Peer-to-peer Options For Investing In Your India
Author: Malini Srikrishna

15. India’s Growing Social Lending Trend

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: