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Q. Am I eligible for opening a trading Account? |
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Yes, any Individual, Hindu undivided Family (HUF),proprietary firm,partnership firm,
company,trust or Non Resident Indians (NRI) can open an account with Shah Investors
Home Ltd. |
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Q. What details do I have to take into a consideration while opening an account? |
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If you like to buy shares, first of all you have to appoint a broker. 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 registefred with SEBI. Once you open an account, you will
be able to buy shares in your particular Trading ID, which is called your Trading
code. |
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Q. Why do I have to give Bank details while opening an account? |
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Bank details are required as per KYC norms. |
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Q. Can I appoint a POA for Trading Account? |
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Yes, you can appoifnt a POA to operate your Trading Account. However, you have to
submit POAf documents as per our requirement. |
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Q. Why it is necessary to give Financial Details in Trading Account? |
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It is mandatory from exchange to give your financial Details in Trading Account
Form. |
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Q. Why should I give Depository account details in Trading Account? |
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We will link your Trading Account with Demat acfcount for Pay in - Pay Out of securities. |
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Q. How will I know that my account is afctive? |
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You will receive Welcome letter, in which you will find all the details related
to your Trading Account. If you are hafving account in Internet Trading, than you
will receive an email from Internet Depfartment regfarding your trading account. |
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Q. How can I View my Trading Account Information? |
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Client can View Statement of Account, Bills, Profit & Loss, Demat Holding from our
Back office through thfeir Ufser Id anfd fPassword. |
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Q. How to get my Backoffice Password to see my Account Online? |
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If you are a Offline Client and like to see your account online, you can request
for a password than, we will provide you your Backoffice ID and Password and you
will be able to see your Account Online. |
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Q. What type of ordfers I can place? |
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Market Order - A market order is an order to buy or sell a stock at the current
markeft price. Limit Order - To avoid buying or selling a stock at a price higher
or lower than you wanted, you need to place a limit order rather than a market order.
A limit order is an order to buy or sell a security at a specific price. A buy limit
order can only be executed at the limit price or lower, and a sell limit order can
only be executed at the limit price or higher. Stop Loss Order - An order placed
with a broker to sell/buy a security when it reaches a certain price. It is designed
to limit an investor's loss/profit on a security position. |
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Q. How do I place an Order? |
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You can either go to the broker's /sub broker's office or place an order over the
phone /Internet or as defined in the Model Agrefement signed by you. |
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Q. How do I know whether my order is placed? |
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The Stock Exchanges assign a Unique Order Code Number to each transaction, which
is intimated by broker to his client and onfce the order is executed, this order
code number is printed on the contract note. At the end of day our representative
will call you. |
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Q. Can I modify/cancel my order? |
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Yes, you can modify or cancel your orders, before they are executed. |
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Q. What is AMO? |
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AMO is a After Market Orders. As tfhe term suggests, clients would be able to place
orders after market hours on each day. AMO will be applicable on Exchange Criteria. |
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Q. What documents should be obtained from broker on execution fof trade? |
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You have to ensure receipt of the following documents for any trade executed on
the Exchange: a. Contract note b. In the case of electronic issuance of contract
notes by the brokers, the clients shall ensure that the same is digitally signed
and in case of inability to view the same, shall communicate the same to the broker,
upon which the broker shall ensure that the physical contract note reaches the client
within the stipulated time. It is the contract note that gives rise to contractual
rights and obligations of parties of the trade. Hence, you should insist on contract
note from stockbroker. |
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Q. What is a contract notes? |
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Contract note is a one type of Bill that shows your confirmed trades on particular
day forf and on behalf of client. Contract note is issued in the prescribed format
of Rules and regulations of NSE and SEBI guidelines. Contact notes are helpful to
track you. |
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Q. Can I view my Contact note Online? |
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Yes, You can View your Bills Online through your userid and Pasfsword form our Back
office. You can also able to view your Previous bill and new bills from our Back
office anytime and anywhere. You can verify your quantity, price, brokerage and
time through. |
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Q. Wfhat are thef charges that can be levied on the investor by a stock broker/sub
broker in Contract note? |
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The trading member can charge: 1. Brokerage charged by member broker. 2. Penalties
arising on specific default on behalff of client (investor) 3. Service tax as stipulated.
– 12.36% charges will be applicable on brokerage, T.O. & O.C. 4. Securities Transaction
Tax (STT) as applicable.- 0.125% on market Rate for Delivery and 0.25% on speculation
from sell side. 5.Turn over Charges – NSE charges will be 0.05% and BSE charges
will be 0.01% 6.Stamp Duty Charges - 0.01% on Delivery and 0.02% on speculation
The brokerage, service tax and STT, Turn Over Charges, Stamp Duty charges are indicated
separately in the contract note. |
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Q. What are the margins Requirement? |
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You have to pay initial Margin of Rs. 10000 to start trading. One can give margin
by way of Cheque and by way of Securities. For Derivfatives Segment Margin will
be required of Rs. 50000. Clients also have to fulfill Span Margin in order to trade
in derivative |
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Q. What is a Rolling Settlement? |
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In a Rolling Settlement trades executed during the day are settled based on the
net obligations for the day. Presently the trades pertaining to the rolling settlement
are settled on a T+2 day basis where T stands for the trade day. Hence, trades executed
on a Monday are typically settled on the following Wednesday (considering 2 working
days from the trade day). The funds and securities pay-in and payout are carried
out on T+2 day. |
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Q. What is the pay-in day and pay-out day? |
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Pay in day is the day when the brokers shall make payment or delivery of sefcurities
to the exchange. Pay out day is the day when the exchange makes payment or delivery
of securities to the broker. Settlement cycle is on T+2 rolling settlement basis
w.e.f. |
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Q. What is a Short Delivery of Shares? |
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Short delivery refers to a situation where a client, who has sold certain shares
during a settlement cycle, fails to deliver the shares to the member either fuflly
or partly. It also happens in case of Purchasing a shares. |
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Q. When do I get delivery of my shares? |
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As per T+2 Settlement, You will get delivery of your shares after T + 2 Days into
your Demat account. |
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Q. What is the procedure for Payment or delivery of shares when client buys Shares? |
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For Example If Mr. A Buys shares of a particular company On Monday as per T+2 Settlement.
So Monday is called Day T On Tuesday - customer pays funds to the broker (Shah Inventors
Home Ltd) for securities he has purchased. So Tuesday is called Day T+1 On Wednesday
Shah investors transfers funds to Exchange. So Wednesday is called Day T+2 On Wednesday
- Exchange transfer Shares to Shah investors home Ltd. On Thursday Mr. A can view
shares purchased on Monday in your Demat account on Thursday. So Thursday is called
Day T+3. |