11.1 Want to trade ? Go for it
What are the basic requirements to start trading?
We need to:
a) Open A Trading Account:
Trading accounts are offered by stock brokers who are members of either NSE or BSE. Having a trading account with reputed stock broker is beneficial as they offer competitive brokerage, online trading and other facilities.
b) Open A Demat Account:
This is to keep the shares in demat form (as discussed earlier). The company which offers a demat account is known as a Depository Participant (DP). In India, we have two depositories viz. the National Securities Depositories Limited (NSDL) and CDSL (Central Depository Services Limited) which permit DPs to offer de-mat accounts.
Usually all the reputed stock brokers and some of the banks like ICICI, HDFC, SBI, INGV Vysya etc offer demat accounts.
Check list for opening a demat account
- Pass Port size photo of self (and of nominee, if required)
- Proof of identity - PAN card (Mandatory) – Original to be produced for verification.
- Proof of address – (copy of any one of the following)
- Bank Pass Book / Ration Card / Pass Port / Voter IDCard /Driving Licence (original to be produced for verification).
- Cancelled cheque leaf (proof of MICR number and Bank Account details)
- In-person verification by DP officials is mandatory for opening of demat accounts.
c) Link Bank Account with Trading Account:
While opening the trading account, it has become mandatory to mention your bank account details.