Opening a Demat account is the cornerstone of trading in Indian stock market. SEBI (Securities Exchange Board of India) mandates every investor and trader have one, so here we present you with some leading and best banks that provide demat accounts in India.
Before going any further, let’s first understand the concept of demat account.
What Is Demat Account? A demat account is an electronic repository for securities and shares held electronically. Once purchased through trading accounts, such as BSE or NSE stock exchanges, they would then be stored in demat accounts before becoming available to be sold in an open market of India at BSE or NSE stock exchanges.
What Is a Three-in-1 Demat Account? For optimal trading in the stock market, investors require three accounts: Demat account, Savings bank account and Trading account. Trading account allows accessing stocks while Demat holds them electronically in electronic format.
Most nationalized banks provide the facility of opening three accounts simultaneously: demat, trading and bank. A 3-in-1 Demat Account can help to give investors a seamless trading experience; these linked accounts enable traders to trade exchange-traded financial instruments like IPOs, derivatives and stocks seamlessly.
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