Different Types of Demat and Trading Accounts Everyone Must Explore

Trading in the stock market has garnered the immense interest of the masses because of its profit returns and feasibility. Demat or trading accounts are necessary for a trader to sell, buy and hold securities in the stock market. But for that one must know about the different types of trading and demat accounts.

What is a Demat account?

Demat is the abbreviation of the word “dematerialization” which means converting physical shares into an electronic format. These electronic securities are assets that are easy to access and safe. In simple words, holding a demat account means converting or dematerializing physical shares in an electronic format. Before the era of demat accounts, traders were under the burden of assembling physical copies of their trades. Moreover, a lot of effort went into verifying these trades and hence the frequency of trading in the stock market was much slower. Now with demat accounts trading has become seamless.

What is a Trading Account?

A trading account functions by buying and selling shares in stock markets. After getting a demat account, you need a trading account which comes with a unique trading number used to trade in shares. A trading account acts as a bridge between your bank account and your demat account, allowing you to use your money to trade in stock markets. A trading account also helps us to secure access to multiple stock markets.

Main Differences Between Trading and Demat Accounts

• A demat account is solely used to hold securities in an electronic format whereas a trading account is used to simply buy/sell shares in the stock market.

• A demat account works just like a savings account in a bank. Like our savings account holds money, a demat account allows investors to store shares in a dematerialized or electronic form which are debited and credited. Whereas, a trading account functions more like your current bank account. However, you need both of them to trade in the stock market.

• As a demat account holds shares, it is measured as a stock at a specific time. Whereas a trading account is a book jotting down all the trading transactions measured with time.

Classifications of Demat Accounts

• Regular Demat Account

A regular demat account is one used by all the traders residing in India. The account is appropriate for those who trade alone. The shares purchased are stored in a digital format in the account and are sold from the same. In India, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) provide regular demat accounts. In this, the charges are calculated on factors like subscription type, the volume of money held in the account, and terms & conditions regulated by the depository participant and depository.

The foremost role of a regular demat account is to make trading operations easy and simple. The transfer of shares gets completed within a few hours. What makes it the utmost choice of many is that it allows the investor to hold its shares in the electronic format. Rather than holding shares in a physical format, the electronic format mitigates the risk of theft and espionage. Many hefty additional charges applicable to selling shares have completely vanished thus helping investors save their money from all directions.

• Repatriable Demat Account

This account is for all Non-Indian residents who wish to trade Indian securities and it allows traders to transfer funds across borders. To use this demat account, the trader needs a Non-Residential external bank account in compliance with the regulations laid out by Foreign Exchange Management Act (FEMA).

• Non-Repatriable Demat Account

The last type of demat account is the non-repatriable demat account which prohibits NRIs from transferring funds abroad. One must know that repatriable and non-repatriable investments require separate demat accounts.

Classification of Trading Accounts

• Equity trading Account: This trading account comes with all the necessary features required for trading in futures, equities, and options. Trading of equities means, selling and buying company shares or stocks. In general, equity trading quotes both the purchase and selling of publicly-traded company shares through a stock exchange.

• Commodity Trading Account: Commodity trading is where people invest in various commodities and their derivatives products. These commodities are then bought and sold. By commodity, we mean any raw material or primary agricultural product like gold, silver, wheat, etc. While engaging in commodity trading, a commodity trading account is used to buy the stocks of companies that produce these commodities.

Enkebee Infratech India Private Limited

An Outperforming Leader in the Construction Industry

JJustifying these words is a brand in the realm of elevating the landscape of the Indian construction industry. Enkebee Infratech India Private Limited is an ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 certified company and an upcoming leader in the engineering & construction sector of India. The company offers services around piling, civil, structural, mechanical & architectural Engineering and Construction of industrial, building, and other infrastructural projects across the country. The company is limited by shares and managed by qualified engineers. The brand has established its organizational setups in Kolkata and New Delhi.

Scaling the ladders of immense growth, Enkebee Infratech India Pvt. Ltd has worked on high-octane core Industry Projects in the domains of Power, Steel, Cement, Aluminum, Food, Automotive, and Textile amongst others. The team has also completed numerous Infrastructure Projects (Bridge, Airport, CETP, Roads) and Building Projects (Commercial, Educational, Residential, and Hospital) across India.

Some of the biggest corporates & navaratnas are in Enkebee’s clientele portfolio which inlcude M/s Indian Oil, BHEL, Airport Authority, HPCL, Hindalco, NTPC, CESC, Electro Steel, Keventer, Allana, Thyssenkrupp, ABB, DCL, Exide, Aditya Birla Group, Lafarge, Vardhman, Rungta Mines, ITC, Tata Metaliks, RollsRoyce, Adani, JSPL, Birla Corp and various others.

Well, that was a brief of Enkebee Infratech’s years-long excellence, and the real dose of entrepreneurial motivation is yet to be explored. To touch more upon the company’s journey so far, our editorial team sat down to have a conversation with Enkebee Infratech’s Founder and Managing Director- Mr. Niladri Basu. An alumnus of IIM Calcutta & Jadavpur University, Mr. Niladri Basu founded the company in 2013. Under his guidance and astute business acumen, Enkebee Infratech has carved a remarkable legacy of perfection by providing comprehensive Engineering, Project Management & General contracting services for the Construction of Building, Industrial, and Infrastructure Projects in India. His words motivated us to feature Enkebee Infratech Pvt. Ltd under the exclusive edition of “Best Company to Work for 2023”.

Upholding a Strong Team Behind

Enkebee Infratech boasts compliant and zealous staff personnel consisting of empowered engineers and technical, procurement, HR & Financial professionals and other experienced individuals. Enkebee Infratech stands as a future-oriented engineering & construction company. The team is acknowledged for its robust work ideology and impeccable engineering & management expertise. They have adopted an Integrated Management System to assure top-notch quality of services. To function with an adroit team, the brand has invested serious efforts in teambuilding initiatives. Enkebee Infratech leaves no stone unturned in implementing all reasonable and practical measures to ensure the overall well-being, Health & Safety of its direct as well as indirect employees. The brand has a keen interest in individuals who exhibit utmost sincerity, dedicated hard work, an accountable attitude, and a responsible mindset to serve the clients only with the best.

Being primarily in the service industry, Enkebee’s greatest asset is its workforce. Enkebee Infratech is further concentrating on expanding its team on grounds of discipline and integrity. The brand is planning to come up with newer strategies to cater to all the necessities of its present & future Gen Z employees to go above and beyond in the coming years.

An Endearing Work Culture

Talking about the work environment, Mr.Niladri Basu elucidated that the brand has made conscious efforts in establishing a work culture that fosters acquaintance, brotherhood, ardent job security, empathy and cooperative management across all departments.

He also quoted, “As per a recent survey by the Greatplacetowork, Enkebee’s work environment’s trust index was found 82 with Credibility of Management at 85, Respect for people at 80, fairness at work at 78, Pride at 86, Camaraderie Between people at 84. These results are purely churned out of the values and philosophies we articulate without any rest. As an organization, we too have faced some setbacks and unintentional failures. We have always perceived these failures as a way of reinventing our potential and bringing something out of the box for our clientele. That progressive & empathetic mindset of ours and the support from the workforce are the only constant amidst these wavering times which further indicates the emotional bond between the work force and the company.”

Accolades in the Wing

Enkebee Infratech India Private Limited has been featured under” India’s Top Performing MSMEs” by Economic Times, ETRise for two years in a row, 2020 and 2021.

Future Prospectus

With the current turbulence happening in every domain, sincere inclination towards Research &Development, and technology have become imperative. The brand is looking forward to leveraging R&D and technology and creating a sustainable growth model.

Enkebee Infratech is also in the quest of expanding its operations, and client base geographically. The team will be marching to expand its horizons in all areas of construction. For this, the plan is to collaborate more with technology partners and welcome strategic investors.

Words of Wisdom for the Readers

To conclude the interaction with a surreal note of motivation, we asked Mr. Niladri Basu to share a few words of enlightenment for our global readership panel. The dignitary quoted,” To stay relevant in such uncertain times, follow “AAA” strategy. You must learn to ADAPT to the circumstances the way they are, ADOPT new technologies & ideas and your actions are the only determiners of your success. Unless you ACT smartly and think with a broad spectrum, you can’t take the lead. Never lose sight of your dreams and stay consistent.”