InvestorQ : How to sell securities in dematerialized form?
Ria Roy made post

How to sell securities in dematerialized form?

Answer
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2 years ago


The procedure for selling dematerialized securities is very simple. Remember that shares have to be sold in your trading account. You cannot sell anything directly from your demat account. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips (DIS) given to you by your DP at the time of opening the account. Let us understand the procedure for selling securities in a more detailed manner:
  • You sell securities in any of the stock exchanges linked to NSDL / CDSL through a broker. You can check the list of such stocks from the respective websites of NSDL or CDSL. This is available for download on both these websites.
  • You give instruction to your DP to debit your account and credit the broker's [clearing member pool] account. This must reach your broker by T+1 date before 9.30 am. Ideally, you should submit the DIS on the trade itself to avoid any last minute hassles.
  • Before the pay-in day, your broker gives instruction to its DP for delivery to clearing corporation and that completes the delivery process for your trade.
  • Your broker receives payment from the stock exchange [clearing corporation] towards the shares sold by your through the broker.
  • Once the broker receives the payment, the said amount is transferred into your bank account before the end of T+2 days. Here T+2 refer to the number of transaction days after the execution date.