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
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