Home       Indian Stock Companies      Primary Market      Mutual Funds      Stock Market Blog      Advertise With Us      Contact Us     

Follow indianshares on Twitter
  Indian Stock Companies
  How to Start Trading
  Search on Stock Companies
  ELSS Scheme
  Dematerialsation

  Women in Stockmarket
  History of stockmarket
  Investment Opportunities for NRI
  Currencies
  Delivery instruction slips
  Demat securities
  Derivatives
  Trends in stock market
  Online trading in Stock-Market
  Depository
  BSE-and-NSE
  Upper circuit value
  Unpredictable stock market
  Tips for investing in stock market
  Attraction of Indian stock market
  Stock Brokers
  Stock market the mind game
  Stock market information
  Stock exchange and you
  scenario of indian stock market
    Corporate Benefits
    Delivery Instruction Slips
    Demat Securities
    Nomination
    Pledging
    Rematerialisation
    Trading and Settlement
    Transaction Statement

  Depository and Particpants
    DP and Stock Broker
    DP Account
    Rights and Obligations
You are Successfully Registered.Please check your email account for verification
Email Id Already exists..
Sign up for Indian share Alert
Email:

  Derivatives
    Options
    Risk Management
    Settlement
    Trading
    Advantages of Trading

  Stock Glossary
    Bonus Shares
    Dabba Trading
    Global Depository Receiptst
    Net Market Value
    Splitting and Consolidation
    Trade for Trade

  Mutual Funds
    How to Make Money From Your Fund
    Features of Mutual Funds
    Benefits of Investing
    Pros and Cons
    Investment Objective
    Types of Mutual Funds

  Primary Market
    Book Building
    Investors Guide for IPOs
    Issue Process
    Listing

  Stock Brokers
    Rules and Regulations


Download Cooking App Download UK Tourism App
Download Indian Tourism App Download Indian Film App




Indian Stock Market >> Dematerialsation >>  Trading and Settlement    



[an error occurred while processing this directive]

Trading and Settlement

What is the procedure for selling dematerialised securities?
The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of settlement of shares i.e. delivery (in case of sale) and receipt (in case of purchase) of securities.

Following procedure is followed for settlement:



In case of purchase:-

  • The broker will receive the securities in his account on the payout day from the     clearing corporation of the stock exchange.
  • The broker will give instruction to its DP to debit his account and credit investor's     account who has bough the shares.
  • Investor will give 'Receipt Instruction to DP for receiving credit by filling appropriate     form. However one can also give standing instruction for credit of securities in his     account, which is convenient way of receiving shares as that will obviate the need of     giving Receipt Instruction every time.





  • In case of sale:-
    The investor will give delivery instruction to DP to debit his account and credit the broker’s account with correct ISIN of the number of securities sold by him. Such instruction should reach the DP’s office at least 24 hours before the pay-in as other wise DP will accept the instruction only at the investor’s risk. DP will debit his account and credit the account of the broker through whom shares have been sold. The broker would then transfer the shares to the clearing corporation of the exchange where shares have been sold.

    What is 'Standing Instruction' given in the account opening form?
    In a bank account, credit to the account is given only when a 'pay in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of 'standing instruction' is given. If you say 'Yes' for standing instruction, you need not submit 'Receipt in' slip every time you buy securities. Hence all credits to your account would be automatically facilitated for your convenience.



    Home   Stock Market Blog    Privacy Policy   Advertise with Us   Contact Us   Sitemap  
    Copyright © Site Owned By Vcode Infotech, All Rights Reserved