November 10, 2013 3:58 pm
I wish to open a demat acct,Can you explain me about it?
DMAT account held shares electronically whereas by trading account investors can buy or sell shares. Just like your bank account keeps money, here the DMAT account keeps your shares. When you sell shares, the trading account places the order and takes out the share units from your DEMAT account.
Your savings bank account gets linked to your DMAT/Trading account, so that you can electronically transfer money between anytime. There are several broking firms available in India which allows you to open your DMAT & Trading account with zero account opening fees, but they charges a small amount (Rs 200 – 400) annually for maintenance and service they are offering.
Apart from that you have to pay a small commission to the broker as a brokerage fee every time you make a stock transaction (purchase and sale of shares).
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