Prevent Unauthorized Transactions in your account - Update your Mobile Numbers/email IDs with your stock brokers. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. Receive information of your transactions directly from exchange on your mobile/email at the end of the day..... issued in the interest of investors. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. 2. Update your mobile number and email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 3. Pay 20% upfront margin of the transaction value to trade in cash market segment. 4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard. Continuation Sheet 5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. KYC is one time excercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker,DP,Mutual Fund etc),you need not undergo the same process again when you approach another intermediary.Prevent Unauthorized Transactions in your Trading / demat account --> Update your Mobile Number and Email Address with your Trading Member / Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account / trading account directly from CDSL / NSE on the same day......................issued in the interest of investors.No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Frequently Asked Questions

Frequently Asked Questions

Opening a demat account is as simple as opening a bank account. One can open a depository account with any DP by filling up the account opening form, which is available with the DP. Sign the DP-client agreement that defines the rights and duties of the DP and the person wishing to open the account. Receive your client account number (client ID). This client id along with your DP id gives you a unique identification in the depository system.

The answer to this question is a definite yes. It has been seen that over the years there has been no financial instrument which has given returns as high as the stock markets. The only important factor to be kept in mind is that investment should always be made with an objective in mind and we should not be too greedy while investing. On the other hand, as inflation has fallen over the last couple of decades so have the returns available from basic savings accounts. In fact, many instant access accounts no longer keep pace with inflation at all. Leaving your money in such an account now actually means it is falling in value!

There is really no such thing as 100% safe saving scheme or investment scheme. If anybody tells you different, don’t believe them! Not even government-backed bonds are 100% safe. For that matter, ask anybody who had money invested in various Latin America debt instruments in the 1970s and 1980s. Even governments can go out of business!

Saving is a stage on the way to investing. You cannot be an investor without being a saver but you can be a saver without being an investor. Savings are effectively cash or cash instruments, such as deposit account, term bonds etc. Investing is what you do with the savings you have created if you are looking to generate a return on your money that is greater than what is already available to you through your savings instruments

Under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), the stock exchanges in India provide a trading platform, where buyers and sellers can meet to transact in securities. The trading platform provided by BSE & NSE is an electronic one and there is no need for buyers and sellers to meet at a physical location to trade. The trade is done through the computerized trading screens or internet based trading facilities available and provided by the trading members.

• Interest rate risk: Unlike FDs, NCDs carry interest rate risk due to changes in market interest rates.
• Liquidity: FD can't be sold in the market. As NCDs are listed on a stock exchange, you can sell them any time you want. However, bank FDs are also highly liquid and can be en-cashed before maturity with minor penal charges.
• Taxation : In addition to interest income, there can be capital gains if you sell the NCD before maturity. However, unlike FDs, there is no TDS in case of NCDs.
• Safety: While NCDs are secured debt, corporate FDs are altogether unsecured and bank FDs are secured to the extent of Rs one lakh only.

• Rating & Safety- A lower rating signifies higher risk &vice versa.
• Company background-The credit repayment of the company & other fundamentals of the company to be carefully studied before the investment decision.

NCDs are issued by Corporates, whereas Bonds are issued by Government entities. In most cases, NCDs offer a higher interest rate than Bonds which are secured while NCDs can be secured or unsecured.

• Through a StockBroker
You can buy government bonds in India through a stockbroker the same way you buy stocks. The stockbroker platform will update its portal with the upcoming bond issues.
• Through Mutual Funds
You can invest in government bonds through mutual funds.
• Through Direct Platform
You can buy any government bond through the NSE Go BID Platform or RBI Retail Direct.

The P2P lending is regulated by the Master Directions for NBFC Peer to Peer Lending Platform issued by the RBI in 2017. Only an NBFC can register as a P2P lender with the permission of RBI. Every P2P lender should obtain a certificate of registration from the RBI. What is Government Bonds? Bonds are debt instruments in which the investor loans money to an entity. The entity borrows money at a fixed interest rate for a specific time duration. Such an entity can be government, banks, or corporates. Hence, when the government issues bonds, they are known as government bonds. Furthermore, these investments are known as fixed income investments.

Peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman

• You need to fill out the deposit application form.
• You may need to submit the original identity proof for verification at the time of buying.
• You can invest in deposits with cash, a cheque, online transfer, or a demand draft drawn in favour of the company or the specified entity.

The predetermined price at which the buyer or seller of the call or put option can sell or buy the underlying security is called the strike price.

A put option is a contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Call options are financial contracts that give the option buyer the right but not the obligation to buy a stock, commodity, or other asset or instrument at a specified price within a specific time period.

Options trading is the practice of buying or selling options contracts (at a specific price within a specific date). These contracts are agreements that give the holder the choice to buy or sell a collection of underlying securities at a set price by a specific date. Investors can, but don't have to, own the underlying security to purchase or sell an option.

Futures are a type of derivative contract agreement to buy or sell a specific stock or commodity, currency at a set future date for a set price.

Unlisted shares shouldn’t be confused with Delisted shares. Both of these types of shares are completely different. While unlisted shares are those which are not listed on the stock exchanges yet, delisted shares are those which were once listed but dropped out from the listed shares category due to certain reasons.

Participate in the stock market transactions, you have to open a trading account with the help of some SEBI registered broker/sub-broker.

Any individual over 18 years of age can open a Demat and trading account digitally. Mandatory documents for the same are PAN, bank account, identity, and address proofs.

Fill up a digital form
Visit the broker’s website and fill out the account opening form with details such as name, address, PAN, and bank details of the account that is to be linked to the Demat and trading account. Also, the most suitable brokerage plan needs to be selected.

Upload documents
Scanned copies of documents such as Aadhaar, PAN, cancelled cheque, need to be uploaded. The investor’s photograph, as well as scanned signature, may be needed.
Aadhaar e-verification
The individual can now review the form and submit it. The form can next be electronically signed using the Aadhaar authentication process through OTP.
The individual can transfer funds into the trading account and securities held in some other Demat account to the new account.

Proof of identity: Voter's ID, Aadhaar card, PAN card, passport, or driving license
●    Proof of Address: Ration card, electricity bills, telephone bills, property tax receipts, passport, bank passbook, voter's ID, or Aadhaar card
●    Proof of Income: Photocopy of the Income Tax Return (ITR), recent salary slip, bank A/C statement of the current bank, or cancelled personalized cheque.

A bank holds your funds, and just like that, a depository contains your financial assets. A depository is a financial institute that does this and you have to pay certain dp charges to open an account with a depository participant linked to a main depository. The depository has the responsibility of keeping your financial assets like bonds, mutual funds, stocks, and other assets in dematerialized format safe. India has two primary depositories - NSDL (National Securities Depository Limited) and CSDL (Central Depository Services Limited).

A Broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI.

By trading in demat segment the risk of bad deliveries is completely eliminated. One can also save on 0.5% in stamp duty in case of transfer of electronic shares. It also avoids the cost of courier; follow up with broker and loss of share certificates in transit. One can also take a loan against shares held in demat form by pledging the same with various lending institutions if required.

Yes, Non-Resident Indians (NRI) and Persons of Indian Origin (PIO) can invest in Indian Mutual Funds on a full repatriation as well as non-repatriation basis but  they would have to comply with all regulatory requirements such as completion of KYC before investing.

Hybrid funds are mutual fund schemes that are characterized by diversification within two or more asset classes e.g., equity, fixed income, gold etc. Hybrid funds, also known as asset allocation funds.

An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.

A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments. Debt funds are also referred to as Fixed Income Funds or Bond Funds.

a. PAN with photograph
b. Aadhaar
c. Passport
d. Voter's ID card
e. Driving licence

An Index is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards The leading Indices in the Indian markets are based on BSE( e.g. BSE SENSEX) and NSE Exchanges(e.g. NSE NIFTY) . These indices are a reflection of the overall price movement in the market.

It is a product whose value is derived from the value of one or more basic variables, which is called underlying. The underlying asset can be equity, commodity or any other asset. These products had initially emerged as hedging devices to safe guard an individual/ organization from the volatility of commodity prices over a period of time. Financial derivatives gained momentum post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular.

Daily Square Off is not allowed for NRI i.e. intraday trades are not allowed for NRI clients. Clients can trade only on Delivery basis. All contract notes of either Buy or Sell has to be reported to Authorised Dealer ( PIS Banker) within 24 hours to transactions. Every sale transaction will be credited to client Banks account Net of tax. Hence for every sale transaction capital gain will be calculated by a CA. As per current laws for long term capital gains, Tax rate is nil & for short-term capital gain, tax rate is 15.45%.

No, NRI Investor has to take delivery of shares purchased and give delivery of shares sold. Short Selling is not permitted.

Yes, NRI can purchase shares or convertible debenture of an Indian Company through stock exchanges, under the portfolio investment scheme on repatriation and /or non-repatriation basis.

Non-Resident (External) Rupee (NRE) is a Rupee account using which the funds can be repatriated. It means that the account can be started with funds which can be either transmitted to abroad or from abroad. Non-Resident Ordinary Rupee (NRO) is a Rupee account which can be initiated with funds which are remitted either from abroad or are generated in the country itself. The striking feature is that the amount in this account is non-repatriable. However, funds in NRO account can be repatriated based on the rules that are being followed at the time of repatriation.

NRI Income in India: All NRIs that have income earned in India will be taxed and should file for tax returns annually. For an NRI, it is not required to file for tax returns on investment gains if the tax was deducted from it in the beginning.