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Is it compulsory to open a Depository account for trading in dematerialised securities if an investor squares off his position within the trading period?

April 26, 2017account compulsory dematerialised Depository investor position securities squares trading

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Is it compulsory to open a Depository account for trading in dematerialised securities if an investor squares off his position within the trading period?

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No, if an investor squares off his position within the trading period, he does not need to open a Depository Account. Depository Account is required for taking delivery or giving delivery of dematerialised securities in case of buy or sell respectively. In case the investor squares off his trade, and hence, does not have to take or give delivery of dematerialised securities, the Depository Account is not used.