One Demat Account for all Investments

Now you will be able to trade in stocks, commodities such as gold, crude and wheat through a single demat account from October 2018. With this, a trader is not required to have multiple demat accounts for different exchanges. With the integration of stocks and commodities trading on a single exchange, investors and traders will be able buy and sell stocks and commodities with single demat and bank accounts. According to market experts, the convergence of stock and commodity exchanges will allow exchanges to cross-list products such as NSE and BSE will be able to list commodity derivatives while MCX and NCDEX will be able to list stocks and stock derivatives.

In a major development on Thursday, India’s capital market regulator SEBI (Securities and Exchange Board of India) said that all the stock and commodity exchanges will be able to provide trading in stocks and commodity derivatives. Welcoming the Sebi decision, BSE’s CEO Ashishkumar Chauhan said this will help participants in various markets get a highly regulated, safer, more transparent trading, clearing and settlement framework when implemented fully.

Trading simplified

As of now the bare minimum requirement to trade in company stocks are a trading account with a SEBI registered broker, a demat account with the depository participant and a bank account. The same process is repeated if one wants to trade in commodity derivatives products. With the latest ruling of SEBI, the pain of opening up multiple demat and bank accounts will be taken care off and market participants will be able to trade in stocks and commodities from a universal demat account from October 2018.