re: necessity of trading acct

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2010 Hello, I am aware that if i want to buy and sell shares on a daily, weekly etc basis, I need to maintain an online trading account for the actual transactions of buying/selling, and a demat acct to "hold" the shares.

If however, I only buy shares of say company ABC, today (Feb 2, 2010) and i dont sell them at all, and only retain them, and wish to sell after another 5 years, do i still need a trading account now?

what would be the procedure in that case?

thank you.

Rahul Gupta

Rahul Gupta (Expert)
Follow

03 February 2010 Hello,

In today's scenario, mostly companies have their shares in electronic form (Demat Form). So in order to have the shares in Demat form u require the Demat Account and normally a trading account is combined with the Demat account.

However, if you want to keep the shares in physical form then I think u have to make a seprate application to the registart of the company for issuing the shares in Physical form and then you are not required to have a trading account for that.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now