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Types of Demat Account

If you are an individual who wants to invest in the Indian stock market to increases your chances of making some extra income, then you need to open a demat account. As per the Securities & Exchange Board of India (SEBI) regulations, anyone who wants to trade in the Indian equity market must have a demat account(https://www.edelweiss.in/demat-account). You can also begin trading by opening an online demat account. <br>This presentation will give you an idea about the different types of demat accounts.

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Types of Demat Account

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  1. Types of demat account

  2. Introduction If you are an individual who wants to invest in the Indian stock market to increases your chances of making some extra income, then you need to open a demat account. As per the Securities & Exchange Board of India (SEBI) regulations, anyone who wants to trade in the Indian equity market must have a demat account. You can also begin trading by opening an online demat account. But there are different types of demat accounts and you need to know which account to choose. In order to do that you first need to understand the different features of these demat accounts. Only then you will be able to identify which demat account is best for you.

  3. TYPES OF DEMAT ACCOUNT Normal demat account- If you are an Indian resident who only wants to trade in the equity market than normal demat account is best for you. Shares and securities bought by the account holder are parked in the demat account in electronic format. In case of the sale of securities, shares are securities are debited from the demat account. Opening a demat account doesn’t apply for those who are trading in futures and options. That’s because options and futures are contract-based trades and once the contract expires so does the trade. Hence shares do not need to be stored. Repatriabledemat account– If you an NRI (Non-Resident Indian) who wishes to invest in the Indian stock market then you need to open a repatriable demat account. If you had a demat account as an Indian resident earlier, you need to close that account first. You will also need an NRE (Non-Resident External) bank account that will be linked to your repatriable demat account. Once you have the aforementioned accounts in place you can transfer your purchased shares to the NRO (Non-Resident Ordinary) demat account.

  4. TYPES OF DEMAT ACCOUNT Non-repatriabledemataccount- A non-repatriable demat account is an account for Non-Resident Indians which is linked with their Non-Resident Ordinary (NRO) bank account. As per Reserve Bank of India (RBI) rules, NRIs using this account are restricted from transferring money to a foreign country. According to RBI norms, the principal amount and interest earned are fully repatriable and an NRI can transfer not more than $1 million annually.

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