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Demat Account and its Process - By Choice Broking

Become a Sub Broker at India's Leading Stock Broking Firm. Stop thinking and Start Investing. With a motto u201cAap Kijiye Kaamyabi Ki Tayaari, Baki Humari Zimmedariu201d which captures the very essence of what Choice abides by. Every day at Choice is an effort to raise the bar of u201cExcellenceu201d. Open Free Demat Account with low brokerage and assured returns. visit us at: https://choicebroking.in/

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Demat Account and its Process - By Choice Broking

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  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

  5. 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.

  6. 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. ● ● ● ● ● ●

  7. TO OPEN YOUR FREE DEMAT ACCOUNT CLICK HERE

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