Can I start a Demat account with a bank like the Oriental Bank of Commerce and use a stock broker like Sharekhan.com?
3 Answers
To start trading at a minimum you need 3 things;
Bank Account: This again is not must, but most preferred to transact. Quite a few broker would insist on this.
Demat Account: This is must as all shares on NSE are held electronically. The custodians are CSDL or NSDL both Government entities. These don't offer services directly to customer, but via other financial institutions like Banks and Large Brokers.
Broker Account: This is required to buy or sell securities. If you are only buying in IPO, this is not required as one can directly participate in IPO and Broker is not involved. However if you want to buy and sell on NSE you would need a broker account.
Quite a few financial institutes offer all 3 services or 2 services [Demat/Broker]. The fee structure and online service etc are differentiators. You can take a look at options and decide the best one to use.
Yes Absolutely!
You will need to provide Sharekhan with a cancelled cheque from OBC which has your account number and name on it. They will link that to your DMAT account, and any settlements/dividends paid will directly be deposited into your OBC bank account.
Any time you need to deposit money into your DMAT account, you will need to provide Sharekhan with a checque from OBC and they will credit the amount and you can buy anything you like.
Cheers.
Yes, you can open a Trading Account at one place and a Demat Account at another place. Therefore you can open Trading Account at Sharekhan and Demat Account at OBC.
However, it would be more convenient for you if both the accounts are opened at the same place which would reduce unnecessary work after every transaction.