How To Sell Shares From Demat Account?

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

What is a Demat Account? 

A Demat account is a type of account that holds shares and other securities in an electronic form. It is a convenient and secure way of storing and managing your investments in the stock market. However, to buy and sell shares, you also need a Trading account, which is a platform that allows you to place orders and execute transactions on the stock exchange. This article will guide you how to sell shares in demat account.

What is a Trading Account?

A trading account is essential for participating in stock exchanges such as the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). These exchanges are accessible only to stockbrokers, leaving non-members wondering how to buy and sell shares. Non-members can engage in trading through a stockbroker, who charges a fee called brokerage for conducting share transactions on the exchange.

With the advent of electronic stock trading on the Internet, anyone with a trading account can independently trade using a computer or mobile phone. Stockbroking firms offer trading accounts to facilitate the buying and selling of stocks, serving as the platform for these transactions. Some banks also provide trading accounts through their securities trading arms, often combined with banking and Demat accounts in a convenient 3-in-1 package.

Things to Remember Before Knowing How To Sell Shares Online

  • Trading accounts are fundamental for stock trading.
  • Costs may be associated with opening and maintaining both Demat and Trading accounts.
  • Transaction costs like brokerage and taxes impact the returns from trading.
  • Demat accounts are not limited to shares; they can also hold debt instruments like bonds and debentures issued in dematerialized form.

How To Sell Shares From Demat Account

Step 1: Choose an online broker

The first step is to choose an online broker that offers both Demat and Trading accounts. You can compare the features, charges, and services of different brokers online or by asking for referrals from friends or family. Some of the factors that you should consider are:

  • The brokerage fee, which is the commission that the broker charges for each transaction. It can be a fixed amount or a percentage of the trade value.
  • The annual maintenance charge (AMC), which is the fee that the broker charges for maintaining your Demat account. It can be waived or reduced depending on your trading volume or account balance.
  • The user interface, which is the design and functionality of the broker’s website or app. It should be easy to use, navigate, and understand.
  • The customer support, which is the quality and availability of the broker’s assistance and guidance. It should be responsive, helpful, and accessible through various channels such as phone, email, chat, etc.

Once you have chosen an online broker, you need to open a Demat and Trading account with them. You will have to fill an application form and submit some documents such as your identity proof, address proof, PAN card, bank account details, etc. You will also have to sign an agreement with the broker that specifies the terms and conditions of your relationship. After your account is verified and activated, you will receive a unique login ID and password to access your account online.

Step 2: Place a sell order

The second step is to place a sell order for the shares that you want to sell from your Demat account. You can do this by logging into your account on the broker’s website or app and following these steps:

  • Select the option to sell shares from your portfolio or watchlist.
  • Enter the details of the shares that you want to sell, such as the name of the company, the quantity, and the price. You can also choose the type of order that you want to place, such as market order, limit order, stop-loss order, etc.
  • Review your order details and confirm it by entering your trading password or PIN.
  • Your order will be sent to the stock exchange for execution. You can track the status of your order on your account dashboard or by receiving notifications from your broker.

Step 3: Receive payment and transfer shares

The third step is to receive payment for your sold shares and transfer them from your Demat account to the buyer’s Demat account. This process is done automatically by your broker through a clearing house or a depository participant (DP). You do not have to do anything manually except for checking your account statement and transaction history. The payment and transfer process usually takes two working days (T+2) from the date of execution of your order. On T+2 day, you will receive the payment for your sold shares in your bank account linked with your Trading account. On the same day, you will also transfer the ownership of your sold shares from your Demat account to the buyer’s Demat account through electronic book entry.

Procedure For Selling Share and Buying Them from Your Demat Account

Buying and selling shares from your Demat (Dematerialized) account involves a structured process, which can be broken down into five fundamental steps:

1. Open a Trading Account:

To initiate the process, you must first possess a Trading account. This is an essential requirement for engaging in any form of trading on stock exchanges. It serves as the gateway for your transactions.

2. Study the Trading Account:

 Once you have a Trading account, it’s crucial to familiarise yourself with its intricacies. Understand the platform’s features, functionalities, and its overall interface. Take the time to explore every aspect of the trading account. In online trading, the execution of a trade often hinges on a single click. However, it’s essential to exercise caution because a wrong click can lead to financial losses.

3. Familiarise Yourself with Associated Charges:

 Different types of trading come with varying brokerage charges. Intraday trading, involving buying and selling shares within the same day, and equity trading, which refers to selling shares held for a longer duration, have distinct fee structures. Additionally, the charges can vary between different Depository Participants (DPs) based on the services they offer. Full-service brokers, providing comprehensive trading and investment services, typically charge higher fees than discount brokers, who offer more streamlined broking services.

4. Executing the Transaction:

 The core of the process involves selecting the specific stock you wish to buy or sell. You will need to input essential transaction details, including the quantity of shares to be bought or sold, and then place the buy or sell order on the trading platform. If you are buying shares, ensure that you have sufficient funds in your linked bank account to complete the transaction successfully. Failure to do so might lead to your DP delaying the transfer of shares to your Demat account due to payment issues.

5. Settlement:

In the final stage, the settlement occurs. In a selling transaction, the shares are debited from your Demat account, and the proceeds from the sale are credited to your linked bank account. Conversely, in a purchase transaction, the funds are debited from your bank account, and the shares are credited to your Demat account. This step ensures the smooth exchange of shares and funds between your accounts, completing the buying or selling process.

By following these five steps diligently, investors can effectively manage their Demat accounts and navigate the complexities of buying and selling shares in the stock market.


Now, when you have understood how to sell shares from demat account, it will be a simple and convenient process that will involve choosing an online broker, placing a sell order, and receiving payment and transferring shares. By following these steps, you can easily liquidate your investments in the stock market and earn profits or cut losses. However, before selling shares, you should also consider some factors such as your investment goals, market conditions, tax implications, etc. You should also consult a financial advisor or do your own research before making any investment decisions.

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking Mobile App for effortless investing and trading

Bajaj Broking App Download

6.5 Lac+ Users


4.1 App Rating


4 Languages


₹ 3500 Cr MTF Book