Paperwork Logistics of Accounts and Forms

#1
Hello All

I've decided to trade independently in equity.

But not before I understand the logistics behind it. So I wanted to ask an absolute beginner questions, apologies in advance if this seems too basic, but please bear with an absolute newbie.

After reading lots of materials and talking to people, I realise that even BEFORE you put in your first trade, you have to get your logistics right (especially accounts.) From what I have understood, there are 3 accounts you need to open:

1. DEMAT Account (this is a govt. authority)
2. TRADING Account (this is preferred to be with a bank, say HDFC, BOB, SBI, etc)
3. Current Account (this has to be with a bank).

My questions are:

1. For opening an account with a brokerage firm, say Motilal Oswal eg, do I need to open all 3 accounts?

2. If I decide to have more than one broker, say Motilal Oswal AND HDFC Securities, will I have to open a total of 6 accounts? (3xMotilal and 3xHDFC)

3. Why is a current account in a bank required? Can I not do this with a savings account instead?

4. I understand that SEBI regulates the trading and financial markets. But I don't see any account in the 3 accounts above, that will open an account with SEBI. For trading do you also need to open an account with SEBI?

Please pardon me for my extremely dumb questions, but I am totally fresh here.

Thank you to all in advance.

Best Regards
 
#2
- You don't need to open Current account. Savings account will do it.

- AFAIK Demat account is with Depository and Trading account is with broker.

- When you download forms from the website of a discount broker, you'll get the form
for Demat account too. Your broker will open the Demat account for you.

- Just visit the website of any of the reputed discount broker. They usually have step-by-step
instructions for doing this. Else you can call their customer care representative, he/she will
guide you through the whole process.

- This comparebrokerages.in website can help you choose a good brokerage for your needs.

- You don't need any account with SEBI. SEBI is a regulatory that acts in the interests of
investors. Read more about the roles of SEBI here.
 

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