What is demat account plz tell me?

Question

i am a student and i want to invest my money in share market but do't the how can i buy or sell a share so plz tell me ?

Answer 1

welll tat's a good question!! Students who wish to have extra income while they are on their academic can go for it.

But make sure u handle this at your own risk.

And if u really wish to hav a demat account i would suggest u that you go for www.icicidirect.com

i have used it and i feel it very comfortable...

Take care...

Regards..

Ajesh Joy

Answer 2

Demat refers to a dematerialised account.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.

So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your demat account.

Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.

All these will show in your demat account.

So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.

As you buy and sell the shares, they are adjusted in your account.

Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised form.

Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more.

So a demat account is a must for trading and investing.

Where do I begin?

Look for a DP to have an account with

Most banks are also DP participants, as are many brokers.

You can choose your very own DP.

To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.

A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares.

You do not have to take the same DP that your broker takes. You can choose your own.

But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs.

Get your documents in place

Once you approach your DP, you will be guided through the formalities of opening an account.

You must fill up an account opening form and sign an agreement with your DP.

The DP will ask for some documents as proof of your identity and address.

Check with them what they require. For instance, some may accept a driver's license, others may not.

Here is a broad list (you won't need all of them though):

• PAN card

• Voter's ID

• Passport

• Ration card

• Driver's license

• Photo credit card

• Employee ID card

• Bank attestation

• IT returns

• Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification.

You will have to submit a passport size photograph on which you sign across.

How many shares you need to have to open an account

When opening an account with a bank, you need a minimum balance.

Not so with a demat account. A demat account can be opened with no balance of shares.

And there is no minimum balance to be maintained either. You can have a zero balance in your account.

What will it cost?

The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.

Can I nominate?

Sure. You can nominate whoever you like by filling up the nomination details in the account opening form.

This is to enable the nominee to receive the securities after the death of the holder of the demat account.

Finally?

When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number, which you need to quote for all future transactions.

If you want to sell your shares, you need to place an order with your broker and give a 'Delivery Instruction' to your DP.

The DP will debit your account with the number of shares sold. You will receive the payment from your broker.

If you want to buy shares, inform your broker about your Depository Account Number, so that the shares bought are credited into your account.

Answer 3

hi, i want to give u first suggest to avoied money invest in share. i think u go for mutual fund beacuse it is very safe compare with the stock exchange. beause first u watch out continues prices, another u save big monry becuae lots of taxes are there, u pay manteance charge or yes one think is brock rage. After than u still think about the stock exchange than i wil  give u the name of some company for a long time it is very safe company

Answer 4

Please check if the question which are asking has been answered before.

The answer to your question can be found here :

http://in.answers.yahoo.com/question/ind...

Answer 5

Firstly, I would like to tell you that Demat a/c is a special a/c to do transaction of shares (sale & buy).  The Demat a/c statement itself states your sale & purchase history.  And this a/c is mandatory to trade in shares.  You can buy shares online or through share brokers.  As you wish, there is nothing special to know.  Just open Demat A/c., consult your share broker and start trading depending upon day to day share market updates.

Answer 6

hi fri this is sheshu

Answer 7

Go to share brokers. Read some good magazines on Investments and watch cnbc awaz in hindi its easy for u to undersand.

Demat account is a account for opening an account while trading share market.

or on net u can go for a icici.direct.com

www.kotaksecurities.com