How to Open a Trading Account?
India has been moving towards a cashless economy. The government is actively pushing digital forms of transactions in the country. Digital modes of transactions are faster, secure and more cost-efficient. If one traces the origin of the digital revolution in the financial sector of the country, the search may end at the capital markets. The stock markets had migrated from physical to electronic mode of trading in 1996. The introduction of the Depositories Act 1996, led to the dematerialisation of shares.
Before the conversion of physical certificates into an electronic form, the stock markets operated on an open outcry system. Traders communicated verbally and through gestures to buy and sell shares. With the advent of electronic trading, investors do not have to be present at the stock exchanges and a simple online command is enough to execute a trade. However, certain tools are a prerequisite for electronic trading. You need to have a demat account, trading account and bank account to access the capital markets.