InvestorQ : Can I buy and sell shares directly from my demat account?
Priyanka Jain made post

Can I buy and sell shares directly from my demat account?

Answer
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Dhwani Mehta answered.
2 years ago


Your demat account can be used for its most fundamental purpose; that is holding of shares and facilitating buying and selling of shares through debits and credits through the demat account. Having said that, When you buy the shares they are automatically credited to your demat account and when you sell the shares they are debited to your demat account. But the demat account is not a transaction account. That is a trading account. You cannot directly sell from your demat account or buying into your demat account.
For that you need trading account. Even in an IPO, you can directly get credit into your demat account without trading account. But if you want to sell the shares you got in IPO then you need to have trading account. If you don’t have then you have to open trading account. All transactions can only be done in the trading account. Demat account does not handle any cash transactions. Even dividends and interest are directly credited to the bank account and the DP only gives the list of members on the record date to the registrar. That is all. So you cannot directly buy and sell shares in the demat account.
Demat account can be used to keep a tab and monitor your consolidated portfolio. The demat can hold your equities, mutual funds, gold bonds, index ETFs, gold ETFs, institutional bonds etc. Thus you can get a consolidated view of all your investments in one place. In fact, your demat account with all the holdings can be directly mapped to your online portfolio in the broker portfolio. This can also give a real-time view of your net worth.