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Demat account acts as a custodian of shares of you can say it’s your share’s bank where you can keep your holdings. It is mandatory for a trader to open a Demat account especially when he is doing delivery trading.
Demat account can be opened with:
In older era of trading, one dealt in shares and stock market by traditional bid in an unorganized bazaar which did have the risk of frauds and discrepancies. There was no proper portfolio recorded anywhere.
In today’s tech-savvy and workaholic world, nobody has sufficient time to participate in the bid going to the venue officially which gave birth to online trading accounts which help you in buying and selling shares in the stock market by placing orders online through trading terminals in your mobile,on your laptops or by calling your broker. One can buy and sell shares through the trading account.
Demat account can be opened with:
| TRADING ACCOUNT | DEMAT ACCOUNT |
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| 2. It involves buying and selling of shares and securities | 2. It involves portfolio management and custody of your portfolio. |
| 3. It is mandatory to have a trading account in order to trade in the stock market even if it’s intraday,delivery or any kind of trading. | 3. If you do intraday trading then Demat account is not required. |
| 4. Trading account does not have any annual maintenance charges. | 4.Demat account does have annual maintenance charges. Amount varies from broker to broker. |
| 5.One can deposit or withdraw funds for trading through trading account | 5. Demat account doesn’t have any option for fund transfer. |
| 6. Shares cannot be transferred through trading account. | 6. Shares can be transferred through Demat account. |
| 7. It is required for every kind of trading which can be intraday, delivery, etc. | 7. It is required only for delivery trading. |
| 8.Trading account can be operated by the investor or the broker. | 8. Demat account is operated by the depository. |
| 9. It does not have any transaction charges. | 9. It has Demat transaction charges. |
The operation of stock trading in India was started in 1875. The BSE is the stock exchange of India. History of Indian stock trading starts with the 318 individual taking part in Stock Brokers Association and Native Share, which is known by name as Bombay Stock Exchange. The operation of stock trading in India was started in 1875. The BSE earliest stock exchange of India. The National Stock Exchange arrives 2nd into the BSE in the Conditions of status.
NSE and BSE represent themselves since the synonyms of the Indian equity market. The history of the stock market in India is nearly the same as the history of BSE. An upbeat mood of the market was lost suddenly with the Harshad Mehta scam. This came to the public understanding that Harshad Mehta, who is also called a major bull and giant Indian equity market that diverted huge funds from banks by deceptive means. Also, he played millions of shares of several businesses. For averting such scams, authorities formed SEBI, through Act in 1992. The SEBI is a statutory body that regulates and controls the working of brokers, stock exchanges, portfolio manager investment advisers, sub-brokers, etc.
SEBI obliged several tough steps to defend the interest of an investor. With the beginning of the online trade and each day settlements opportunities for fraud are nil, leading officials of SEBI states. Sensex crossed 5000 mark at the year 1999 and 6000 mark at the year 2000. A foreign institutional investor will be investing in stock markets in India on a very large scale. Liberal economic policies pursued by the successive Government attracted many foreign institutional investors towards a large scale. The impulsive behavior and action of the marketplace dedicated its tag – volatile marketplace. The factors which influenced the market in the past had been this good monsoon, rise into power of Bharatiya Janatha Party’s, etc.
The consequence Of cricket matches between Pakistan and India also influenced movements of stock trading in India. National Democratic Alliance that was led by BJP, in 2004 this public elections unsuccessfully tried for riding on market opinion to power. NDA is voted out from the power and Sensex recorded the largest fall in the day between fears which Congress Communist coalitions would block India’s economic reform. India, after the US, hosts this large number of these listed businesses. Global investors now seek India since the preferred location for this investment. The stock market now also appealing to the middle-class Indians. The majority of the Indians working in a foreign nation now diverts their savings to the shares. This new phenomenon is due to a lower interest rate from banks and the opening of this online trading. Stockbrokers in India are opening offices in different countries mainly into cater needs of these Non-Resident Indians.