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What kind of account is needed to be opened in the bank for trading in securities?

mali mom (marketing) (22 Points)

22 April 2022

Want to know which account is need to trade in stock exchange.

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8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14863 Points)
Replied 22 April 2022

If you want to Trade in shares ( NSE / BSE) , then open DMAT account .

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 23 April 2022

Demat may be linked with either savings or current account

sabyasachi mukherjee (27715 Points)
Replied 24 April 2022

Demat account linked with savings bank account or current account

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 24 April 2022

Only Indian Bank account should be linked with demat account

sabyasachi mukherjee (27715 Points)
Replied 26 April 2022

A nre bank account can also be linked

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 26 April 2022

NRI is not allowed to trade in Indian Securities.. Kindly read FEMA and FERA

Faizal Khan (5 Points)
Replied 29 April 2022

In order to trade in securities, one needs to open a Demat account and a trading account from a DP (Depository Participant) that could be a Bank, NBFC (Non-Banking Financial Company), Brokerage firm , or any other financial institution .

A securities account, also known as a brokerage account, is an account that holds financial assets such as securities on behalf of an investor with a bank, broker, or custodian. Investors and traders typically have a securities account with the broker or bank through which they buy and sell securities.

A Demat account is also referred to as a Dematerialised account. The physical shares and securities that you purchased are converted or dematerialized and stored in an electronic format here. The SEBI (Securities Exchange Board of India) passed a regulation in 1996 mandating the use of a Demat Account in order to trade on the stock exchanges such as the BSE (Bombay Stock Exchange) or the NSE (National Stock Exchange).
A Demat Account is comparable to a bank account. When you sell or buy shares, the number of shares in your account is either debited or credited.