How to Trade using Demat Account

Dematerialization of physical securities need to fill in a DRF or Demat Request Form. These forms are available with the depository participant. These forms are required to fill properly and submit with the physical certificates. For ISIN, which is a unique identification number of security, separate DRF is needed to fill.

One who is wondering as how to trade using demat account should follow the below mentioned steps;

• The certificates for dematerialization are needed to submit to the respective depository participant.
• The depository participant then should intimate the depository of the request through the system.
• The depository should submit that certificate to the register of the company which is issuing the thing.
• The confirmation of the dematerialization request form will come from the register.
• After that the register will update the account and then will inform the depository of the completion of the dematerialization.
• The depository will update the account and inform the DP.
• Depository participant updates the demat account of the investor.

The above are the procedures of how to trade using demat account. Besides these there are certain other features which can be related while saying how to trade using demat account. Following are the features:

• A number of shares can be dematerialized together.
• The dematerialized shares are fungible and thus do not have distinctive numbers. This shows that all the holdings of a particular security are identical and can be interchanged.
• The procedure of purchasing shares follow the brokers receiving the security, the brokers giving instruction to the DP and then the investors will give instruction to the DP to credit the amount.
• Standing instructions can also be given for credit transfer into ones account.