How to Buy and Sell Shares in a Demat Account?

Buying and selling shares in a Demat Account is a quick and convenient process that can be done from the comfort of your home or office.

Buying Shares in a demat Account:

Step 1: Open a Trading Account

To buy shares in a Demat Account, the first step is to open a Trading Account with a stockbroker. A Trading Account is a platform that allows investors to buy and sell shares on the stock exchange. The investor needs to provide the necessary documents such as a copy of the PAN card, AADHAAR card, bank statement, etc., to open a Trading Account.

Step 2: Place an Order

Once the Trading Account is opened, the investor can place an order to acquire shares. The investor needs to log in to their Trading Account and select the shares they want to buy. The investor needs to enter the number of shares they want to buy and the price they are willing to pay. The order can be placed as a market order or a limit order. A market order is executed at the prevailing market price, while a limit order is executed at a specified price.

Step 3: Payment and Settlement

After the order is placed, the investor needs to make the payment for the shares. Online payments can be made through net banking, UPI, or other methods. The shares are credited to the investor’s Demat Account once the payment is confirmed. The settlement of the shares takes place on the T+2 day, which means that the shares are transferred to the investor’s Demat Account two days after the purchase date.

Selling Shares in a Demat Account:

Step 1: Place a Sell Order

To sell shares in a Demat Account, the investor needs to log in to their Trading Account and select the shares they want to trade. The investor needs to enter the number of shares they want to sell and the price they are willing to accept. The order can be placed as a market order or a limit order.

Step 2: Verification and Approval

After the sell order is placed, the investor needs to verify that the details of the order are correct. The investor needs to ensure that the number of shares to be sold, the price at which they are being sold, and the details of the buyer are correct. Once the investor verifies the details, they have to approve the order.

Step 3: Delivery Instruction Slip (DIS).

After the sale order is approved, the investor needs to fill out a Delivery Instruction Slip (DIS) and submit it to the DP. The DIS is a document that authorizes the DP to debit the investor’s Demat Account and transfer the shares to the buyer’s Demat Account. The DIS needs to be submitted before the settlement date.

Step 4: Payment and Settlement

Once the shares are transferred to the buyer’s Demat Account, payment is made to the investor. The payment is credited to the investor’s bank account after deducting the necessary charges. The settlement of the shares takes place on the T+2 day, which means that the payment is received by the investor two days after the sale date.

 


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