Demat Account and Trading Account MCQs September 11, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. A Demat account is primarily used for: (A) Holding securities in electronic form (B) Buying and selling property (C) Holding physical share certificates (D) Maintaining bank deposits 2. A Trading account is primarily used for: (A) Storing shares in electronic form (B) Buying and selling securities in the stock market (C) Issuing IPOs (D) Maintaining savings 3. Which authority regulates Demat and Trading accounts in India? (A) RBI (B) SEBI (C) IRDAI (D) Ministry of Finance 4. To open a Demat account, which document is mandatory? (A) Driving license (B) PAN card (C) Electricity bill only (D) Passport only 5. Which of the following can act as a Depository Participant (DP)? (A) Banks (B) Brokers (C) Financial institutions (D) All of the above 6. Demat accounts are maintained with: (A) Stock exchanges (B) Depositories through DPs (C) SEBI directly (D) Brokers only 7. Which of the following is NOT held in a Demat account? (A) Equity shares (B) Bonds (C) Mutual fund units (D) Fixed deposits in banks 8. Which number uniquely identifies a Demat account? (A) UPI ID (B) DP ID + Client ID (C) ISIN only (D) Aadhaar number 9. A Trading account is linked with: (A) Demat account only (B) Bank account only (C) Both Demat and Bank accounts (D) None of the above 10. Which of the following best explains the role of a Demat account? (A) Safe custody of securities in digital form (B) Trading shares directly (C) Earning interest on shares (D) Transferring company profits 11. Which of the following is required to settle share transactions? (A) Only Demat account (B) Only Trading account (C) Both Demat and Trading accounts (D) Only Bank account 12. In India, which two depositories manage Demat accounts? (A) NSE and BSE (B) NSDL and CDSL (C) RBI and SEBI (D) IDBI and SBI 13. ISIN is associated with: (A) Mutual funds (B) Securities identification (C) Bank accounts (D) Trading accounts 14. Which service is provided by a Trading account but not by a Demat account? (A) Buying and selling securities (B) Holding securities electronically (C) Rematerialization (D) Dematerialization 15. A Demat account eliminates the risk of: (A) Share price fluctuations (B) Physical certificate theft or damage (C) Market volatility (D) Brokerage charges 16. The process of converting physical share certificates into electronic form is called: (A) Rematerialization (B) Dematerialization (C) Transmission (D) Settlement 17. The reverse of dematerialization is called: (A) Transmission (B) Rematerialization (C) Pledging (D) Redemption 18. Trading accounts are opened with: (A) Depositories (B) Stockbrokers (C) SEBI directly (D) RBI 19. Which account is compulsory for applying in an IPO? (A) Demat account (B) Trading account (C) Bank account (D) Both Demat and Bank account 20. Which account actually holds the securities? (A) Trading account (B) Demat account (C) Bank account (D) Loan account 21. The credit of bonus shares is made to: (A) Trading account (B) Bank account (C) Demat account (D) Broker account 22. Which account is necessary for settlement of cash? (A) Demat account (B) Trading account (C) Bank account (D) ISIN 23. A Demat account is similar to which type of account? (A) Bank locker for securities (B) Savings account for money (C) Fixed deposit account (D) Loan account 24. Pledging of shares is done through: (A) Bank account (B) Trading account (C) Demat account (D) SEBI 25. Brokerage charges are levied on: (A) Demat account (B) Trading account transactions (C) Bank account (D) DP ID 26. Which of the following is NOT required to open a Trading account? (A) PAN card (B) Bank account details (C) Driving license (D) Demat account 27. Which authority allots ISIN to securities in India? (A) SEBI (B) NSDL (C) RBI (D) Ministry of Finance 28. In India, T+1 settlement means: (A) Trade is settled on the same day (B) Trade is settled on the next working day (C) Trade is settled in two days (D) Trade is settled in three days 29. Dividends are directly credited to: (A) Trading account (B) Demat account (C) Bank account (D) DP account 30. Which account provides a statement of holdings of securities? (A) Trading account (B) Demat account (C) Bank account (D) ISIN 31. Which account is primarily used to place buy and sell orders? (A) Demat account (B) Trading account (C) Bank account (D) DP account 32. A Demat account helps in: (A) Faster settlement of trades (B) Eliminating fake certificates (C) Easy transfer of shares (D) All of the above 33. Rematerialization is requested through: (A) Bank (B) Depository participant (C) Trading broker (D) Stock exchange 34. Which of the following charges apply to Demat accounts? (A) Annual maintenance charges (B) Transaction charges (C) Custodian fee (D) All of the above 35. The unique identification of securities is through: (A) ISIN (B) PAN (C) DP ID (D) UPI 36. Transmission of securities happens in case of: (A) Market purchase (B) Inheritance or death of holder (C) IPO allotment (D) Rights issue 37. Which account is required for F&O trading? (A) Demat account only (B) Trading account only (C) Both Demat and Trading accounts (D) None 38. Securities are transferred to investors in: (A) Trading account (B) Bank account (C) Demat account (D) Broker account 39. To sell securities in the stock market, which accounts are mandatory? (A) Bank account only (B) Trading and Demat accounts (C) Bank and Trading accounts only (D) DP account only 40. Which account enables paperless trading? (A) Bank account (B) Demat account (C) Trading account (D) Both Demat and Trading account 41. The statement of transactions in securities is given by: (A) Bank (B) Trading account (C) Depository participant (D) Stock exchange 42. Which account facilitates e-voting rights for shareholders? (A) Trading account (B) Demat account (C) Bank account (D) Broker account 43. Rights shares are credited to: (A) Bank account (B) Trading account (C) Demat account (D) DP ID 44. Which of the following can freeze a Demat account? (A) Depository participant (B) Broker (C) SEBI (D) All of the above 45. Which account is required for intraday trading? (A) Demat account only (B) Trading account only (C) Both Demat and Trading accounts (D) Bank account only 46. Which of the following cannot be credited into a Demat account? (A) Mutual fund units (B) Gold ETFs (C) Physical cash (D) Government securities 47. The clearing and settlement of shares in India is done through: (A) RBI (B) Clearing corporation linked with depositories (C) SEBI (D) Brokers only 48. A Demat account is compulsory for: (A) Currency trading (B) Commodity trading (C) Equity delivery trading (D) Futures trading 49. Which account is used to give instructions to buy/sell securities? (A) Demat account (B) Trading account (C) Bank account (D) DP account 50. Which of the following best explains the difference between Demat and Trading account? (A) Demat holds securities, Trading executes transactions (B) Both are same (C) Demat is for cash, Trading is for shares (D) Trading holds securities, Demat executes trades