Demat Account and its Process - By Choice Broking - PowerPoint PPT Presentation

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Demat Account and its Process - By Choice Broking

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Become a Sub Broker at India's Leading Stock Broking Firm. Stop thinking and Start Investing. With a motto “Aap Kijiye Kaamyabi Ki Tayaari, Baki Humari Zimmedari” which captures the very essence of what Choice abides by. Every day at Choice is an effort to raise the bar of “Excellence”. Open Free Demat Account with low brokerage and assured returns. visit us at: – PowerPoint PPT presentation

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Title: Demat Account and its Process - By Choice Broking


1
Demat Account and its Process
  • A guide by Choice Broking

2
What is Demat Account ?
Demat account is the account that should be open
to buy or sell shares in the stock market. A
Demat Account is an account that allows investors
to hold their shares in an electronic form.
Stocks in Demat account remain in dematerialized
form.
3
Dematerialization is the process of converting
physical shares into electronic format. The demat
account number is quoted for all transactions to
enable electronic settlements of trades to take
place. So a demat account is a must for trading
and investing. Demat account functions like a
bank account, where you hold your money and
respective entries are done in bank passbook. In
a similar form, securities too are held in
electronic form and are debited or credited
accordingly. A demat account can be opened with
no balance of shares. You can have a zero balance
in your account.
4
  • How to Open a Demat Account

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7
Types of Demat Account
  • There are 3 main types of demat accounts
  • Regular Demat Account
  • A regular demat account used by investors
    residing in India.
  • Repatriable Demat Account
  • A demat account used by NRIs under which funds
    can be transferred abroad. This type of demat
    account requires an NRE bank account associated
    with it.
  • Non-Repatriable Demat Account
  • A demat account used by NRIs under which funds
    cannot be transferred abroad. This type of demat
    account requires an NRO bank account associated
    with it.

8
How does a demat account operate?
  • If you are familiar with physical trading, then
    electronic trading would be a cakewalk for you as
    both are similar in nature. To familiarise
    yourself with the online trading process, read
    the steps mentioned below
  • Go to your online trading account and start by
    placing an order. However, for this process, it
    is important that your demat account and trading
    account are linked.
  • Once you are through your order, your order will
    be processed by the exchange.
  • Your demat account will then tally the market
    prices of the shares you are looking to invest
    in. Before the last stage, your demat account
    checks for the availability of the shares.
  • Once the process is complete, your shares will be
    reflected in your demat account.
  • If you wish to sell your shares, you need to
    provide a delivery instruction note containing
    the details of the stock you wish to sell.
  • After selling your shares, these will be debited
    from your account and the money earned from it
    will be credited to your trading account.

9
TO OPEN YOUR FREE DEMAT ACCOUNT CLICK HERE
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