What is the procedure for buying and selling shares in dematerialized? The procedure for buying and selling dematerialized securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of a sale) and receipt (in case of a purchase) of securities.
When you purchase shares:-
• The broker will receive the securities in his account on the payout day.
• The broker will give instruction to its DP to debit his account and credit BO's account.
• BO will give ‘Receipt Instruction’ to DP for receiving credit by filling the appropriate form. However, BO can give standing instruction for credit to his account that will obviate the need of giving Receipt Instruction every time.
When you sell shares:-
BO will give delivery instruction through Delivery Instruction Slip (DIS) to DP to debit his account and credit the broker’s account. Such instruction should reach the DP’s office at least 24 hours before the pay-in, failing which the DP will accept the instruction only at the BO’s risk. In fact, a lot of these hassles can be totally avoided if you opt for online trading and seamless shift of banking, demat and trading in securities.