There are some basic requirements before one can start the process of buying, holding and selling shares. This document is a basic guideline for defining these requirements. Please note that this document does not provide any advice on which shares to buy or which investment strategy is suitable for an individual. This is a beginner’s guide for individuals based on my own experiences.
3 basic things are needed to get started:
* Dmat account
* Trading account
* Bank account
A demat account is similar to a bank account, the difference being that instead of cash, a demat account holds shares. So, if shares are bought, they are credited to the buyers Dmat account and if shares are sold, they are deducted from the Dmat account accordingly. Shares that are credited to or deducted from a Dmat account are electronic shares. For an individual wishing to trade in shares, it is mandatory to trade in dematerialized shares only. Physical…