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A demat Account is an account used for share trading. Demat stands for
Dematerialisation. It means holding shares in electronic form. An investor needs to open
a demat Account with the bank having this facility. Demat Account is similar to a bank
account, the only difference being in Bank you deposit and Withdraw Money, in demat you
deposit and Withdraw shares. It is created for trading of shares by investors in open
market (secondary market)
The following documents are required for opening a demat account at Tradeswift
Duly completed account opening form and passport size photos
A copy of PAN card as proof of identity
Personalized cheque/Copy of the bank passbook
A copy of passport/voter ID/ ration card as a proof of address
No, it is not permitted. If we had authorised you to link your current Demat account
with another broker to your trading account, you would have been able to buy shares
through us but not sell them through us. You'd have to sell it through the other
stockbroker who holds your Demat account. Furthermore, if you acquire with us, the
shares you purchased will be reflected in your holdings summary. However, because you
sold through the other broker, we will not know when you sold those shares because they
are not digitally linked. In such a case, our site will continue to display the
holdings, which is inappropriate and may confuse you. This can be perplexing if you have
forgotten about the trade. You can, however, trade in the equity intraday section if you
link your existing Demat account to your Trading account.
There is no such thing as an expiry date for a trading/demat account. You can keep your
Trading and Demat accounts open indefinitely.You simply need to pay AMC fees to maintain
your Demat account operating in the case of Demat.
It's possible to buy and sell within a settlement cycle many times, which is what
traders do. They settle only their net outstanding positions at the end of the cycle.
Eg. Bought 100 HLL, Sold 50 HLL Bought 100 Infosys Bought 50 Gujarat Ambuja , Sold 150
Gujarat Ambuja Then at the end of the settlement cycle, you will receive 50 shares of
HLL and 100 of Infosys and receive money for selling a net 100 shares of Gujarat Ambuja.
In other words, the settlement is made for the net outstanding positions at the end of
the settlement cycle.
India's oldest and first stock exchange is the Bombay Stock Exchange (BSE). It was
established in 1875 with over 6000 stocks listed. The total number of stock exchanges in
India is 22 across cities like Ahmadabad, Bangalore, Calcutta, Chennai, Delhi etc. There
is also a National Stock Exchange (NSE) which is located in Mumbai. There is also an
Over the Counter Exchange of India (OTCEI) which allows listing of small and medium
sized companies. The regulatory agency which oversees the functioning of stock markets
is the Securities and Exchange Board of India (SEBI), which is also located in Mumbai.
Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of
HLL and 100 of ACC. All these will show in your demat account. So you don't have to
possess any physical certificates showing that you own these shares. They are all held
electronically in your account. As you buy and sell the shares, they are adjusted in
your account. Just like a bank passbook or statement, the DP will provide you with
periodic statements of holdings and transactions.
No, adding a joint account holder to an existing account is not possible. You must open
a joint account separately if you desire to do so. If you want to be the first holder of
the new joint account, you must close the old one and start the new one as a joint
account with you as the first holder. If you will not be the original holder, you can
register a joint account without cancelling your existing account.
All new clients must have a Demat account. As a result, if you want to trade or invest
in equities or ETFs, you will need to open a Demat account with us.A Demat account
allows you to trade in the following markets:
Equity Delivery
Intraday Equity
Equity Derivatives (F&O)
Currency Derivatives (F&O)
Commodity Derivatives (F&O)
If you have completed and E-signed your online account opening form and wish to amend
any details, please contact us. Our account opening agent will assist you in this
respect by checking your information, which you may then change as needed.
No, the contract note will be available for the user to view on the website for no
charge. Using this free option, the user can simply select the transaction or the date
range and view all the transactions for that period. The contract note will be provided
online and the user can view, save or print it as per his wish.
Yes, the demat account statement will be sent across to you at regular intervals, so
that you can keep track of the status of your account. You can view account details like
holdings, transaction history, etc
A Contract note is a confirmation of trade(s) done on a particular day for and on behalf
of a client. A contract note issued in the format and manner prescribed by the exchange
and establishes a legally enforceable relationship between the trading member and client
in respect of settlement of trades executed on the exchange as stated in the contract
note. Contract notes are made in duplicate, and the member and client keep a copy each.
The said contract notes should be signed by a trading member or by an authorized
signatory of the trading member. After verifying the details contained therein, the
second copy of the contract note should be returned to the trading member, duly
acknowledged by the client.
Margin buying is buying securities with cash borrowed from a broker, using other
securities as collateral. This has the effect of magnifying any profit or loss made on
the securities. The securities serve as collateral for the loan. The net value, i.e. the
difference between the value of the securities and the loan, is initially equal to the
amount of one's own cash used. This difference has to stay above a minimum margin
requirement. This is to protect the broker against a fall in the value of the securities
to the point that they no longer cover the loan.
When the margin posted in the margin account is below the minimum margin requirement,
the broker or exchange issues a margin call. The investor now either has to increase the
margin that they have deposited, or they can close out their position. They can do this
by selling the securities, options or futures if they are long and by buying them back
if they are short. If they don't do any of this the broker can sell his securities to
meet the margin call.
After you have bought or sold shares through your broker, the trade has to be settled.
Meaning, the buyer has to receive his shares and the seller has to receive his money.
Settlement is just the process whereby payment is made by all those who have made
purchases and shares are delivered by all those who have made sales.
In a rolling settlement, each trading day is considered as a trading period and trades
executed during the day are settled based on the net outstanding for the day. At
present, trades in rolling settlement are settled on a T+2 basis, i.e. on the second
working day. T+2 means that trades are settled two working days after the day the trade
takes place. For instance, trades taking place on Monday are settled on Wednesday,
Tuesday's trades settled on Thursday and so on.
No, not all stocks are eligible for margin trading. The stock broker enables select
shares for trading in the margin segment. These stocks currently account for almost the
entire trading volume on the exchanges. Only those stocks, which meet the criteria on
liquidity and volume, are considered for margin trading. Technically, the stocks having
low impact cost are considered for margin trading. However the stock selection in the
margin is at the sole discretion of the stock broker.
The stock exchange ensures that buyers who have paid for the shares purchased receive
the shares. Similarly, sellers who have delivered the shares receive payment for the
same. The entire process of settlement of shares and money is managed by stock exchanges
through the clearing house. The clearing house has been formed specifically to
facilitate the transfer and ownership of shares and ensure the process of settlement
takes place smoothly.
A stock exchange or a securities exchange is a corporation or mutual organization which
provides "trading" facilities for stock brokers and traders, to trade stocks and other
securities. Stock exchanges also provide facilities for the issue and redemption of
securities as well as other financial instruments and capital events including the
payment of income and dividends. In simpler words, a stock exchange facilitates
transactions between buyers and sellers of securities.
Liquidity is the key criteria to decide on which exchange to trade. If you are looking
to buy/ sell, look to see where you get the best offer/ bid, and trade on that exchange.
If you are looking at doing big volumes, check to see at what average price your order
will be executed on the respective exchanges. Generally, in liquid stocks, it does not
make a difference which exchange you trade your stocks in.
The stock exchange index is a barometer of performance of the market economy as a whole.
It is a relative measure of the performance of all or a number of stocks that are traded
on a stock exchange. It incorporates the return on stocks, their volumes traded and the
shares outstanding. There can be a number of indices relating to a single stock exchange
that incorporates the returns on a number of companies. The BSE Sensex and the NSE CNX
Nifty are the 2 most common indices in India
The initial margin requirement is the amount required to be collateralized in order to
open a position. Thereafter, the amount required to be kept in collateral until the
position is closed is the maintenance requirement. The maintenance requirement is the
minimum amount to be collateralized in order to keep an open position. It is generally
lower than the initial requirement. This allows the price to move against the margin
without forcing a margin call immediately after the initial transaction.
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