what is the function of demat account and how it works. what do online trading means?any one kindly reply.
thank you
2006-09-27 07:51:31 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
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
BOLT (BSE Online Trading) is the electronic trading, which is essentially order driven, facilitates efficient processing, automatic order matching and faster execution. This trading system displays on continuous basis script and market-related information required supporting traders. Information includes best five bids and offers, last traded quantity and price, total buy and sell depth (irrespective of rates), open, high, low and close price, total number of trades, volume and value, and index movement. Other company-related information is also displayed. As soon as an order is matched, the confirmation of the trade is generated on-line. The order matching logic is based on best price and time priority. The BSE On line Trading Platform has a capacity of conducting 2 million trades per day and has the latest state of the art technology infrastructure with Trader Work Stations located in more than 400 cities all over the country. Trading on the BOLT system is conducted from Monday to Friday between 9: 30 a.m. and 3:30 p.m.
2006-09-27 08:24:03 · answer #1 · answered by americandreamboy4u 3 · 0⤊ 0⤋
Demat account is similiar to a Bank Account the only difference is you hold shares in a Demat Account.
Trading in most securities nowadays is through compulsory demat, so it becomes necessary to have a demat account to be able to buy/sell shares.
Many Banks and Trading houses offer you Depository services. Among these banks are HDFC, UTI, ICICI, Saraswat Coop, Bank of Maharashtra etc. It is important that you have a good depository.
Many Trading Members also offer depository services like Motilal Oswal & SSKI (Share Khan) .... the advantage is that you get the benefits of a broker *** dp who can take care of your entire portfolio and help you invest systematically in shares.
For opening a demat account you will get all the information from NSDL website. The link is www.nsdl.com
On the Left hand side of the homepage you will see the FAQs, you can read those for a better understanding of Demat Account and how to open one and operate it.
2006-09-27 18:10:21 · answer #2 · answered by indiangal 3 · 0⤊ 0⤋
Demat (Dematerialised) account is an account in electronic form with a bank or an institution where all your shares are stored and traded as per your wish. Online trading is buying/selling shares over the internet i.e through a site of a broking institution or a bank dealing with trading of shares.
2006-09-27 20:27:01 · answer #3 · answered by princeatheart 2 · 0⤊ 0⤋
Just like a bank account holds your money safely, a demat account holds your securities (shares/bonds) safely. You can transfer securities in or out of your account as in bank transactions. Online trading means trading securities through Internet without manual intervention.
2006-09-27 08:26:15 · answer #4 · answered by Ven 4 · 0⤊ 0⤋
D-mat account means an account to be kept with a custodian to keep our holdings of shares/bonds/securities in an electronic forms with a depository participant. Nomination facility is there. Easy formalities to open and operate.
Regd on line trading means hassle free trading on the internet through authorised dealers. Transperancy will be there.
Thanks for opportunity for answer this question
2006-09-27 16:12:28 · answer #5 · answered by Mani T 1 · 0⤊ 0⤋
Dude,
Demat acc is an electronic from of acc for storage of ur shares .
A online acc is linked with the same as no more physical formats exists.
A onine acc allows U to to purchase scripts or sell on the touch of a button. All this trax is linkled with UR Demat acc.
2006-09-27 08:23:35 · answer #6 · answered by ACE 2 · 0⤊ 0⤋
Is it possible that you mean demo account where you wrote demat?
If this is the case I will answer your question by explaining that online trading refers to you trading through a brokerage account that you access through the internet OR online - you will place your accounts through their trading platform 'connected' your account. One of the features of many of the online accounts is that they have demo account - demo means demonstration - which will allow you to practice trading in this account before you risk your real money.
2006-09-27 08:23:49 · answer #7 · answered by sundance 2 · 0⤊ 0⤋
With out any limit you can open any number of demat accounts. But as per present system of allotment in case of multiple applications by a person, with similar address are liable for rejection.
2016-03-27 13:46:42 · answer #8 · answered by Anonymous · 0⤊ 0⤋