Demat account is an easy tool to hold online equity shares in electronic form.Through which we can easily buy ,sell and hold financial instruments such as equity, mutual fund, bond, stock trading and IPO .
Demat Account is safer mode of Investment, where we can find better security of financial Instruments.It is mandatory by SEBI and easy Portfolio management .It is Manage By Depository houses.
Documents Required for Demat Accoun
1.Pan Card is Mandatory
2.Address Proof Like Adhaar Card , Voter Id , Passport , Utility Bills etc.
3.Cancelled Cheque or Bank statement.
Opening Charges for Demat Account can be start from Rs 200 to Maximum Rs 1000 in India , it’s Depends on Brokers how much they decide.
Now a days Demat Account opening online with Adhaar instantly , for that person Mobile Number should be registered with Adhaar , where he/she will get OTP to validate OTP to get complete e-sing process easly so afrer Demat Account will open 5 mintus
AMC (Annual Maintenance Charges ) for Demat Account charged by the brokers in india as pro-rata Basis as per financial year.It’s entirely depends on Brokers , How much they set the prices can be start from Rs 300 to Maximum Rs 600 .
One Pan Card Holder can have many Demat Accounts simultaneously with different Brokers with One saving account linked .
Yes 2 or 3 people jointly can open Demat Account easily.
Yes, if you are going to plan for Demat Account.You can add nominee easily .
Trading Account is not a Demat Account.In that particular account a person can buy and sell equity , Future and Option and Currency on the basis of intraday and as well as can hold Derivative Market Contracts till expiry.
Basically Demat Account :Demat Account is not Trading Account but when you Buy and Hold any shares , ETF , Mutual Fund , Bond etc then in case we required Demat Account ,
No, It is not compulsory to open Demat Account with Trading account.
No,Demat Account is not required if we are opening Commodity Trading Account.
Nobody can not operate another person's Demat.To do that one must be required a Permission from the demat account holder.
Introduction of Basic Demat Service Account by SEBI "It helpful to those people want to trade very less and save Annual Maintenance Charges on Yearly Basis . In BSDA you can Hold maximum Rs 50000/- worth of shares, if any case your holding exeed Rs 50,000then you have to pay AMC every Month.
IPV -In-person Verification is a process when you are going to open Demat then stock broker will give you IPV Tool where All the stock Brokers in person verifies the client and his documents as per the Sebi Guideline
It is very compulsory for every client to get Complete IPV process before opening Trading and Demat Account .
Initial Public Offering (IPO) is when a Private Companies want raise Investment capital offering their shares to public first time is called IPO
Primary Market is entirely IPO based market where Private Companies offers their share to public to get list on Exchange , People who are interested to buy share of those companies before listing on Exchange its called Primary Market .
Nobody can not apply IPO without Demat Account for IPO application you must have a Demat Account .
FPO (follow on Public offering ) is offering of shares for those public companies which are currently listed with Exchange but they has gone through IPO Process
1.Login on your NetBanking Account.
2.Click on the link of "IPO Application".
3.Select one of the IPOs you want to apply and mention up to 3 bids.
4.Need to Enter your depository details.
5.Place and confirm your Order for IPO.
Syndicate Members are those Broking houses,they having right to distribute IPO applications,which they received from Investor and get Upload data on the stock exchange IPO shares bidding platform (NSE / BSE).
Stock exchanges are those places, where share trading take place in india there are two major stock exchanges NSE and BSE .
1.National Stock Exchange(NSE) & 2.Bombay Stock Exchange (BSE).
Stock exchanges provides share Trading to those people who willing to buy and sell securities online .
Goods and Service Tax (GST) always levied on Brokerage charges by stock broker.
Securities Transaction Tax (STT) maximum 0.1% is levied on per transaction to buy and sell any securities .
Commodity Transaction Tax (CTT) maximum 0.1% is levied on per Transaction to buy and sell any commodity future and option contracts
SEBI Turnover Charges levied minimum 0.0001% and Maximum Rs 15 cr on every transaction executive to buy and sell any securities
Exchange Transaction Charges and clearing charges levied by the Exchanges for every executed Trade to Buy and sell any securities
Stamp duty is levied on transaction or may be whole day turnover to buy and sell any securities on exchange its charge different in other state to other state
PIP (Percentage in Points ) is difference of Bid and ASK in currency pair which trades on Exchange.
Depository Charges (DP) is levied, when any investor sell his holding from demat then dp charges levied on that transaction executed on exchange
Depository are those organisation which holds electronic assets of retail and Institutional Trader and Investor like securities , bonds and MF etc.
DP are those intermediaries who link with Depository Houses to serve the retails Trader and Investor to settle all the holding transaction
National Securities Depository Limited is an Indian central securities depository based in Mumbai. It was established on 8 November 1996 as the first electronic securities depository in India
Central Depository Services Ltd, is India’s 2nd central securities depository based in Mumbai. They holding securities either in certificated or uncertificated form, to enable book and Track entry transfer of securities
Any Private and Public company can open Corporate Demat Account for Share Trading and Investment
1. PAN card copy of the Company and the PAN card copies of each Authorised Signatory/ Whole Time Director of the firm.
2. Address proof copy of the Company and the address proof copy of each of the Authorised Signatory of the Company.
3. Income proof documents of the Company
4. The Certificate of Incorporation of the Company
5. (MOA)The Memorandum of Association and( AOA)the Articles of Association of the Company.
6. A FACTA declaration of the Company
Hindu Undivided Family (HUF) Karta can open Demat Account with stock broker
1. HUF Pan Card and the PAN card copy of the Karta.
2. Address proof copy of the HUF along with address proof copy of the Karta of the HUF.
3. Income proof in the form of the of the HUF
4. Photocopy of the PAN card of the HUF’s Co-parcener.
LLP Limited Liability Partnership is Partnership Demat Account
1. Copy of the LLP Agreement duly attested by a notary public (investment clause must be mentioned).
2. PAN card copy of the Firm.
3. PAN card of each individual Partner (Attested by each such partner).
4. Address Proof copy of the Firm.
5. Address Proof copy of all the partners (Attested by Each Individual Partner).
6. Income Proof
7. Copy of Balance Sheet of the Firm for the last 2 Financial Years
8. Aadhaar of the Authorized Person as per the Letter of Authority on the letterhead of the firm.
9. Copy of Certificate of Registration
10. Latest percentage interest of each partner/
11. FATCA Declaration
Partnership is a Partnership Demat Account Under sec 1932 Partnership Act as per Partnership Deed
1. PAN card copy of firm and the PAN card copies from each Partner of the firm
2. Address proof copy of the firm and the address proof copy of each of the Partner’s of firm.
3. Income proof documents of the firm,
4. A Foreign Account Tax Compliance Act Declaration from the Firm
5. A copy of the Certificate of Registration .
Margin is extra amount which providing by the stock brokers to their Clients as per the amount Deposited in Trading Account .
A deposited Rs 10000/- in Demat Account , but want purchase Rs 50000/- worth share , so here Rs40,000 is Margin Money which is providing by a stock broker.
When Any stock broker give Loan against Securities its called Margin Lending
SPAN margin calculated by a system called standardized portfolio analysis of risk (SPAN),this is the system which identified how much margin required and adopted by Future and Option Exchanges .
Exposure Margin provided by stock broker along with span margin to manage margin risk of trader and investor.
Intraday Limit provided by the stock brokers to their clients against n number of times Whatever they deposit in Trading account .
When stock brokers gives Margin to their clients along with margin they have to Right to close these position on given time its called Intraday Position squareoff.
Stock Brokers provide web based platform for Trading on their website link.
Stock brokers provide Desktop Based Platform for Trading in that case they provides one link to get download on desktop
Stock brokers provides Android based Mobile Applications for trading for Android phone users
Stock brokers provides IOS based Mobile Applications for trading for iphon/Apple phone users
NSENOW is wide platform provided by the National stock exchange (NSE) every Stockbroker in India Link with the Lease Line for this Software , after that Retail Traders and Investors can use this .
Stock or Share Market is place where we can buy and sell shares and financial Instruments online get the benefit to trade on different exchanges
Financial Market is wide Market term , where people buy and sell and Buyer and seller participate in Trade Equity, bond , currency and derivative markets .
Secondary Market is place where buyer and seller participate directly in equity Market online for those securities which they got listed on exchange .
Firstly Need to open Demat Account after that will buy and sell share online .
There are 5 segments in the stock market to trade
1.Equity , 2.Equity Intraday ,3.Future and Option , 4.Currency derivative ,5.Commodity
Dividend is a portion distribute by company to their shareholders from there earnings ,can be paid in Cash payment, Cheque Payment or Online Transfer .
Bonus issue of share does not involve cash flow of payment , it is issued from company’s reserve to every shareholder of this particular company but it does not affect company net assets as well .
Large Cap stocks there Market cap is very high and keep Heavy weightage in Benchmark Index Like Nifty and Sensex
Small cap stock ,there Market Cap is Very Low they does not affect benchMark indexes
Mid cap stock, there Market cap is Much Higher from small cap stocks but they does not affect Benchmark indexes
Nifty is a Benchmark Index of Nation stock exchange of India(NSE) represent India growth story
Sensex is Benchmark and first Index of India by Bombay Stock Exchange represent India’s Growth story
Derivative Market derive from Underlying asset which is trading on exchanges like Equity , Currency and Commodity through 3 month contracts with monthly expiry .
Equity Market is a place where Buy and sell the share online through demat Account
Currency Market is a place where we buy and sell the currency pair as per the exchange guideline in India 4 Currency Pair registered on Exchange USD/INR, EUR/INR, GBP/INR and JPY/INR
Commodity Market is a place where we buy and sell the commodity like Gold , silver , zinc etc as per the exchange Guideline Exchanges in India .
Bank Nifty is Leading Benchmark Index from National Stock Exchange represent Banking Heavyweights Shares Like HDFC,AXIS BANK , ICICI BANK .
Bull Market is called Market is in Uptrend
Bear Market is called Market is in Downtrend
Option are type of Derivative Securities , so call option describe Uptrend of market
Option are type of Derivative Securities , so call option describe Downward Trend of market
Index Future are those Derivative Contracts which are cash settled future contracts on the value of a particular stock market Index.
Stock future are those Derivative Contracts which are cash settled Future contracts on the value of underlying Individual Equity share values.
This is One time process while Dealing in securities Market , Once the KYC done through SEBI registered intermediary (Broker, DP and Mutual Fund etc.)this is called KYC Process
SEBI (Securities Exchange Board of India ) is well defined Regulatory of India who regulate the financial Market in India to Handle Unethical Practice of concern .
SEBI ruled out the Financial MARKET for stop Unethical Practice by all Intermediaries those are Legally Registered with Exchanges through SEBI.
SEBI Registered Broker or Intermediary safeguard for trader and Investor , for unethical practices.
SEBI always Runs a Panel to sortout all the issues for investors where they get solutions through these panel
If any stock exchanges not addressing your issue so we can escalate to sebi at (SEBI Complaints Redress system) on SEBI website.
Brokerage charges one type of Commision charged by any stock broker for executive transaction on Buy and Sell of securities .its varies to Broker to Broker how much they charges
Lots of Brokers Charges .10 to.50 paisa per order executive and some broker providing free Brokerage for Equity Delivery
Lots of brokers Charges 0.01 to 0.05 and some Discount broker providing Flat 10 to 20 Rs its varies to Broker to Broker .
Lots of Brokers charges Per lot basis Rs 100 Maximum and minimum Rs 20 per lot and some discount Brokers charges flat Rs 10 to 20 on the basis of per Order Executed
Lots of Brokers Charges per Lot basis Maximum Rs 100 and Minimum Rs 50 and some discount Broker Charges Flat Rs 20 to Rs 10 Minimum per order executed
Lots of Brokers Charges per lot Basis Maximum Rs 100 and Minimum Rs 50 and some discount Broker charges Flat Rs 20 to Rs 10 Minimum Per Order Executed
Lots of brokers Charges minimum Rs 100 to maximum Rs 200 Per executed its varies broker to broker .in India
POA(Power of attorney )is Documents ask by any stock broker to settled the sell transaction of securities by any investor on exchange this Documents Called POA .
Without POA, settlement of Holding in demat will not easy to settle , if POA not submitted then stock broker settle holding in hard copies , it become lengthy process .
Reputed Stock broker received only hard copies of POA now days but some broker accepting online also
Yes we can open Trading Account without POA to trade Equity Intraday and derivative Market Trading itself.
No POA is not mandatory for Trading and commodity Account
Yes we trade in Derivative Market without giving POA through Trading account
Non-Resident Indian (NRI) means a “person resident outside India” who is a citizen of India
As per Reserve Bank of India (RBI) guidelines, NRI who desire to invest in shares in India through a stock exchange need to approach the designated branch of any authorized dealer (bank) authorized by reserve bank to administer the PIS (Portfolio Investment Scheme) to open a NRE (Non Resident External) /NRO (Non Resident Ordinary) account under the scheme for routing Investments.
Portfolio Investment Scheme (PIS) by reserve bank of India to NRI to Buy and Sell any securities of india companies on stock exchanges Under this scheme
OCI Scheme operational from 02nd Dec 2005 government of India decided to grant overseas citizenship of India (OCI) its known as “dual citizenship”.
List of documents to be taken while registering NRI/PIO/OCI Clients as may be applicable •
Document ensuring status of entity In case of Indian passport - Valid passport, Place of birth as India,
Valid Visa – Work/Student/employment/resident permit etc. In case of foreign passport : Valid passport and any of the following
• Place of Birth as India in foreign passport
• Copy of PIO / OCI Card as applicable in case of PIO/OCI
• PIS Permission Letter from the respective designated bank
• PAN Card
• Overseas Address Driving License/ Foreign passport /Utility Bills/ Bank statement (not more than 2 months old)/ Notarized copy of rent agreement/ leave & license agreement/ Sale deed.
• Photograph of Investor.
• Proof of respective bank accounts & depository accounts.
In such case if any NRI want to provide Indian Address Proof to open NRI Trading Account additionally in that case they need to provide document evidence in support local Address
To start Trading you need to open a demat account first with stock broker , Once Demat Account get open , add money from your saving bank account and start Online Trading .
Online share Trading is a easy way to Invest and Trade in financial Market through any stock broker they Provide Trading platform for online share Trading .
Online Share Trading : this is the new way of trading through online software , mobile application there is no need to call to broker placing orders.
Offline Share Trading : this is the Traditional way of trading where you need to call and Trade to stock broker .
Investment in stock Market is very easy now a days , need to open Demat Account with any stock broker , Once the Demat Account get Open you can Invest in shares and Mutual Funds etc.
This Unique tool Provided by Online stock broker to calculate Margin for Derivative Market Lot and funding calculation
This Online Brokerage Calculation Tool available on the most of the stock brokers to calculate brokerage charges before placing orders
The need for a GTC order is made when an investor or trader place an order to buy or sell a stock and then wait till it is canceled or is not complete, which is called a GTC order.
Bracket Order is new type of Order where you can Place your set price for buy and sell along with Target Price , stop loss and Trailing stop Loss simultaneously
This is tool providing by broker to manage Ledger and PNL and report for executed Trades
This is the tool where you can check All the trading related reporting which help to Track all the details