How to buy Shares using Demat Account? - Investallign

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How to buy Shares using Demat Account? - Investallign


The stock market and share trading are the two most-talked topics in India. If you want to buy shares online, you should open Demat account with stock brokers so that you would get Unique User Id and Password through which you can Buy/Sell Shares. People want to trade in stocks, but they have a fear of losing money. – PowerPoint PPT presentation

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Title: How to buy Shares using Demat Account? - Investallign

How to buy Shares using Demat Account?
Demat Account
The Procedure for buying Shares through a Demat
  • The stock market and share trading are the two
    most-talked topics in India. People want to trade
    in stocks, but they have a fear of losing money.
  • Experts say that it is not a market of
    speculations as many people think. Instead, it is
    a market based on thorough financial concepts.
  • By understanding the trends, one can make a
    fairly accurate assumption about the ups and
    downs in the market.
  • A long-term perspective is always better than day
  • With the introduction of Demat in India, there
    has been an enormous increase in the number of
    people trading in the stock market.

The Procedure for buying Shares through a Demat
  • The digitization made share trading, brokerage
    calculation and account settlement simple.
  • Before you start trading, it is significant to
    open a Demat account if you havent opened so
    far. After opening the Demat account, you can
    source a broker to facilitate in the share
  • Nowadays, all brokers offer an online platform
    that makes the things amazingly convenient.
  • The blog tells about share trading using the
    Demat account in detail.

  • Get the PAN Card first
  • Getting Permanent Account Number or PAN in India
    is easy.It is the basic requirement for
    performing any financial transaction.
  • Nowadays it is mandatory to have the PAN. You
    need to apply for it with the supporting
    documents. The Department of Finance will allot
    the number, and a card is issued in the name of
    the cardholder.
  • Open a Demat account
  • Once you get the PAN, open a Demat account.
    Either fill the online form and send the
    supporting documents in the digitized form or
    fill in the physical form and attach attested
  • You need to give the application form to the
    brokerage company you want to transact with. Once
    the documents are verified, you get Demat
  • It can be used for buying and selling stocks,
    mutual funds, and derivatives.

  • Depository Participant or DP is an agency that
    stores the shares that you hold. NSDL and CDSL
    are two depository participants in India. They
    issue a unique identification number to every
  • Choose the broker
  • Usually, the same broker gives you a trading
    account who opens the Demat account.
  • The share broker is certified and authorized by
    the Security Exchange Board of India or SEBI to
    act as a broker. SEBI issues a license and unique
    identification number to the broker.
  • He is the intermediary between the trader and the
    stockbroking firm. He charges a small amount as
    the brokerage for every transaction sell or

  • Buying and selling shares
  • Once you open Demat account and link it with the
    trading account, you can buy or sell stocks
    online. You can also do it by giving instructions
    to the broker over phone.
  • Shares bought and sold on the same trading day is
    called intraday trading. Shares that you hold and
    sell on a trading day later is called delivery
    trading. The brokerage for intraday trading is
    less than the delivery trading.
  • Brokerage is calculated and deducted online in
    the profit or loss incurred by you. If you dont
    have balance in the trading account, then you
    need to replenish it to trade further.
  • Also Read
  • What is the Difference between Demat Account and
    Trading Account?

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