| For investing in equity markets, you need to get a DEMAT account opened with a broker who completes the KYC process as per SEBI regulations and gets your account activated in 4-5 working days. Once your account is activated, you get a trading code and a DEMAT account number. You also get a Delivery Instructions Booklet for your DEMAT account which is used to transfer shares from your DEMAT account to any other DEMAT account. You should always keep safe custody of this Delivery Instructions Booklet and must not hand over any blank signed slip from the booklet to anyone as there are chances of it getting misused. So just like you do not handover any blank signed cheque to anyone, you should not also handover any blank signed DI slip to anyone. |
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| Your DEMAT account is an electronic depository which stores all shares purchased by you through your broker. Indian Stock Exchanges follow a T+2 settlement process where any stock purchased by you on a particular day gets credited to your DEMAT account on 2nd working day. |
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| Once you get an account opened, you can place orders on the stock exchanges to buy and sell shares through your broker. |
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| A note of caution: Brokers usually allow clients to trade with an amount equivalent to 5-6 times their ledger balance on an intraday basis (buy and selling on the same day). However you should use this facility with caution and do not overtrade in the account. Overtrading can cause you to become impatient when leverage is involved and market is going against you that might make you take hasty decisions and incur a loss. So one should use the limits provided by broker very cautiously and should not overtrade a lot. |