A Trading Account acts as a bridge between the Demat and the bank account. Similarly, your Demat account holds your securities until you sell them to a buyer.Īlong with a Demat account, you also need to open a trading account to buy and sell securities.
One way to visualise this is to compare this to a godown where a businessman who sells detergent soaps stores the stock received from the manufacturer to sell it further to retail stores. You can quickly invest in capital markets online as well as hold, monitor and trade seamlessly using a Demat account. Dematerialization makes the process of virtually holding securities safe, easier, and convenient to transact once you start trading. However, these are held digitally or as electronic copies in a dematerialised form. Just as your bank account stores your money, your Demat account holds your shares, securities, bonds, mutual funds, and other assets. What is a Demat account?Ī Demat account is a digital account that holds the securities you buy virtually.
After opening an account, you must know how to transfer funds from a Demat account to the bank account and vice versa. But first, you need to open a Demat account. It is important to understand how to transfer money from a Demat account to a bank account, transfer shares between two Demat accounts, and withdraw funds to be sent back to your bank account to ensure that your investment journey is hassle-free. However, it is never too late to start investing in the capital market if you want to earn higher returns than other financial instruments.īefore you start investing, there are a few fundamental processes and terms you should know. The interest in the capital markets is evident with the highest number of Demat accounts opened in the year 2020-21 which broke all the records in the history of the capital markets. Financial awareness about the profit potential of capital markets coupled with lower yields from traditional investment options has led to a growing interest in capital market investment in the recent past.
How to Transfer Money from Demat Account to Bank Account?Ĭapital markets have consistently remained an attractive investment option for those looking for high returns.
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