What kind of account is needed to be opened in the bank for trading in securities?

Want to know which account is need to trade in stock exchange.

Replies (8)
Quick Summary
To trade in securities on the Indian stock exchanges like NSE and BSE, you'll need to open a Demat account and a trading account. A Demat account, similar to a bank account, holds your shares in electronic format. This account must be linked to a savings or current bank account, which should be an Indian bank account. While NRIs have certain restrictions due to FEMA and FERA, Indian residents can begin investing by opening a Demat account.

If you want to Trade in shares ( NSE / BSE) , then open DMAT account .
Demat may be linked with either savings or current account
Demat account linked with savings bank account or current account
Only Indian Bank account should be linked with demat account
A nre bank account can also be linked
NRI is not allowed to trade in Indian Securities.. Kindly read FEMA and FERA

In order to trade in securities, one needs to open a Demat account and a trading account from a DP (Depository Participant) that could be a Bank, NBFC (Non-Banking Financial Company), Brokerage firm , or any other financial institution .

A securities account, also known as a brokerage account, is an account that holds financial assets such as securities on behalf of an investor with a bank, broker, or custodian. Investors and traders typically have a securities account with the broker or bank through which they buy and sell securities.

A Demat account is also referred to as a Dematerialised account. The physical shares and securities that you purchased are converted or dematerialized and stored in an electronic format here. The SEBI (Securities Exchange Board of India) passed a regulation in 1996 mandating the use of a Demat Account in order to trade on the stock exchanges such as the BSE (Bombay Stock Exchange) or the NSE (National Stock Exchange).
A Demat Account is comparable to a bank account. When you sell or buy shares, the number of shares in your account is either debited or credited.

FEMA and FERA has restrictions for NRI.

Indian residents can start investing by opening demat account

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