entering the indian stock market guide

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shares Every company requires more capital i.e. money to expand itself in the marketi.e . money So company can get it in two ways: i. through money lenders or banks who charge a specific interest on the money le nded. ii. through shares To raise the capital company roll out its shares in the stock market with a spec ific amount known as ipo(initial public offering) investment in the capital of a company through stock market. Stock Market these shares are available in stock Market through various stock exchanges Popular Stock Exchanges in India are: 1. NSE(National Stock Exchange) 2. BSE(Bombay Stock Exchange) Stock Broker Individuals cannot directly buy/sell shares in stock Exchanges,they have do it t hrrough intermediatries known as stock borkers Stock Brokers are registered members of stock Exchanges they can buy/sell shares in the share Market. investors need to open account with stock brokers in order to trade in stock mar ket there are two types of accounts : Trading Account:the account through which the shares can be directly traded in t he stock market. Demat (dematerialised) account:the account in whcih shares can be stored for lon ger period of time. Stock broker charge some commission known as brokerage from the investor it is usually the some percent of the total amount traded it is charged for two types of trading: intraday:buying and selling shares in one day delivery: buying and selling shares in more than one day brokerage intraday .03-.05% or flat 20-25rs delivery .1-.5% or flat 20-25rs other charges AOC(Account Opening Charges)- rs0-400 AMC- 0-400 Sebi taxes ST STT Transactional charges for both pay in and pay out(if any):it should be normally free Physical contract charges- Should be free Paper Account Statement Charges- Should be free Features provided by the Stock broker 1 online trading through desktop/laptop 2 online trading through mobile 3 Charts for various companies 4 call and trade for free 5 trade on its own terminals 6 toll free helpline 7 Referral system 8 should trade in commodities,F&o,Mutual funds and Currencies. List of Stock Brokers

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Page 1: entering the Indian Stock Market guide

sharesEvery company requires more capital i.e. money to expand itself in the marketi.e. moneySo company can get it in two ways:i. through money lenders or banks who charge a specific interest on the money lended.ii. through shares To raise the capital company roll out its shares in the stock market with a specific amount known as ipo(initial public offering)investment in the capital of a company through stock market.

Stock Marketthese shares are available in stock Market through various stock exchanges Popular Stock Exchanges in India are:1. NSE(National Stock Exchange)2. BSE(Bombay Stock Exchange)

Stock BrokerIndividuals cannot directly buy/sell shares in stock Exchanges,they have do it thrrough intermediatries known as stock borkersStock Brokers are registered members of stock Exchanges they can buy/sell shares in the share Market.investors need to open account with stock brokers in order to trade in stock marketthere are two types of accounts :Trading Account:the account through which the shares can be directly traded in the stock market.Demat (dematerialised) account:the account in whcih shares can be stored for longer period of time.Stock broker charge some commission known as brokerage from the investorit is usually the some percent of the total amount tradedit is charged for two types of trading:intraday:buying and selling shares in one daydelivery: buying and selling shares in more than one daybrokerageintraday .03-.05% or flat 20-25rsdelivery .1-.5% or flat 20-25rs

other chargesAOC(Account Opening Charges)- rs0-400AMC- 0-400Sebi taxesSTSTTTransactional charges for both pay in and pay out(if any):it should be normally freePhysical contract charges- Should be freePaper Account Statement Charges- Should be free

Features provided by the Stock broker1 online trading through desktop/laptop2 online trading through mobile3 Charts for various companies4 call and trade for free5 trade on its own terminals6 toll free helpline7 Referral system8 should trade in commodities,F&o,Mutual funds and Currencies.

List of Stock Brokers

Page 2: entering the Indian Stock Market guide

Geojit BNP Paribasindiabulls india infolineKotak Securities xReliance Money xSharekhan SMC India xVenturaComposite Edge xZerodha x

IN ALL A COMPANY SHOULD CHARGE FOLLOWING CHARGES:1. AOC 2. AMC x3. BROKERAGE 4. STT(SECURITIES TRANSACTION TAX)5. sERVICE TAX6. SEBI TAX7. STAMP CHARGES8. TRANSACTIONAL COSTS FOR DEMAT ACCOUNTS x9. MONTHLY HOLDING CHARGES x10. PAPER ACCOUNT STATEMENT CHARGES x11. PHYSICAL CONTRACT NOTE CHARGES x12. PAY-IN PAY-OUT CHARGES x13 idling chargeshow to select a company

1. Company declares Quarterly ResultsA listed company, either in BSE or NSE, declares their performance every

quarter through out the day.Based on the performance of quarterly results market judge how the company is performing and if analysis shows that the company is doing well then its share prices goes up and if analysis found that company is not performing, as per expectation, then market reacts negatively to that company and the result is its share prices falls.

First quarter duration - April to JuneResults declaration on - July

Second quarter duration - July to SeptemberResults declaration on - October

Third quarter duration - October to DecemberResults declaration on - January

Forth quarter duration - January to MarchResults declaration on - April

Forth quarter is considered as end of financial year end.

2. Based on demand and supply

It can be determined by multiplying the price of the share and the total no. of shares rolled out in the market

Demat account is mustYES. Demat account is must.The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the demat account if you want to buy and sell shares in Indian share market.

Page 3: entering the Indian Stock Market guide

So a demat account is a must for trading and investing in share market.

How to open a Demat account?You have to approach a Depository Participant (DP) to open a Demat account.Most banks are DP participants so you can approach them or else you can contact us.To have latest list of registered DP please visit websites www.nsdl.co.in and www.cdslindia.comA broker and a DP are two different people.A broker is a member of the stock exchange, who buys and sells shares on his behalf and also on behalf of his customers.A broker can also be a DP.

Following are the documents required to open Demat accountWhen you approach any DP, you will be guided through the formalities for opening a demat account.The DP will ask to provide some documents as proof of your identity and address.Below is a list of documents out of which you have to submit one or two.PAN card, Voter�s ID, Passport, Ration card, Driver�s license,Photo credit card Employee ID card, IT returns, Electricity/ Landline phone bill etc.