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Account Opening

How to become a client ? (Trading & Depository)

Trading (Normal & Derivatives)

A client is required to download the application form available at the site or can submit registration form on the Home page. On receipt of registration details we shall forward an application form. On completing the formalities in application form, a client is required to forward the same to us. On verification of application form a client will be assigned client code and password.
Note:
Agreement is required to be notorised.
True copy of two proofs like passport, driving licence etc is mandatory.

Depository
A client is required to download the application form available at the site or can submit registration form on the Home page. On receipt of registration details we shall forward an application form. On completing the formalities in application form, a client is required to forward the same to us. On verification of application form, we shall submit the same to NSDL system and a client will be assigned 8 digit system generated Beneficiary account number with the complete kit.
Note:
Agreement is required to be notorised.
True copy of two proofs like passport, driving licence etc is mandatory.

Settlements

 Will Marwadionline handles all my problems arising with the exchange?

 Yes, Marwadionline will take care of any issues that arise with the exchanges on its customers behalf e.g. short deliveries, bad deliveries etc

What is the settlement procedure at NSE?

There are two type of settlements. One is weekly settlement (EQ) and the other is rolling settlement (BE).Weekly settlement starts on Wednesday and ends on Tuesday.Rolling settlement transactions are squared on daily basis.

If I have purchased the share, do I have to take delivery?

No you can choose to sell the share before the end of settlement cycle. However once the settlement cycle is over you have to take delivery by paying for it.

I have bought some shares but shares have not come into my demat account?

The shares will come into your demat account once the settlement takes place. Hence generally you can expect the shares to come into your Demat account every Thursday following the end of NSE settlement cycle. In case you do not receive the shares, it may be due to the stock being in 'No Delivery' period . In this case the shares will come from the exchange after the 'No Delivery' period is over which could be 2-3 weeks away. Alternatively, it is possible that the shares may not have come from the exchange because of shortage. In this case, the exchange conducts an auction and the shares may be received a few days later.

What is an auction?

An auction is a mechanism utilised by the exchange to fulfil its obligation towards the buying trading members. Thus, in case for a settlement, the selling trading members have delivered short, their deliveries are bad or they have not rectified the company objection reported against them, the exchange purchases the requisite quantity from the market and gives them to the original buying member. Auctions are generally held on Wednesday/Thursday.

What happens if the shares are not bought in the auction?

If the shares could not be bought in the auction i.e. if the shares were not offered for sale in the auction, the Exchange squares up the transaction as per SEBI guidelines. The guideline in force stipulates that the transaction is squared up at the highest price on the NSE from the relevant trading period till the auction day or at 20% above the last available closing price on the NSE, whichever is higher. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction.
 

Margin

Is Margin Mandatory ?

Yes to trade with us. You have to deposit upfront margin with us.
 

How Much Is The Margin ?

Depending upon the trading limits and client profile margin varies from (10% to 25%)

Mode of Margin

Margin to be paid by cheque upto 2 lakhs. Above 2 lakhs 50% is accepted by cheque & other 50% by depositing demat shares (Nifty scrips)

Securities Lending And Borrowing

What is ALBM ?

ALBM is Automatic Securities and Lending Mechanism introduced by National Stock Exchange. In this Session a client can carryforward their purchase position of previous settlement to next settlement. In this usually client pays Borrowing charges to the lender. A client can also carryforward their short position to corresponding settlement. As per recent guidlines a short position carryforwarded to next settlements can fetch lending charges only in the case when he holds that securities in his accounts or holds eqvivalent amount in his bank. You can also lend monies & can receive returns as lending charges.

Trading Procedures

Can one square up, take delivery or carry forward their position in settlement ?

Yes, you can square up your position, you can short sell i.e. go short and square up within settlement or can go long and square up within settlement. If you do not sqaure up your short and long position, it becomes your obligation at the end of settlement. You can carryforward certain scrips from one settlement to other settlement through Automatic Securities Lending and Borrowing Mechanism.

What are GTC, GTD and IOC orders ?

A Good Till Cancelled (GTC) order remains in the system until the trading member cancels it. However, the system cancels this order if it is not traded within a number of days parameterised by the Exchange. A Good Till Days/Date (GTD) order allows the user to specify the number of days/date till which the order should stay in the system if not executed. The maximum number of days for which the GTC/GTD order can remain in the system is notified by the Exchange from time to time after which the order is automatically cancelled by the system. The days counted are inclusive of the day/date on which the order is placed and inclusive of holidays. An Immediate or Cancel (IOC) order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is cancelled from the system. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately.

What is a Disclose Quantity (DQ) order?

The system provides a facility for entering orders with quantity conditions: DQ order allows the member to disclose only a part of the order quantity to the market. DQ (Disclosed Quantity) should not be less that 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.

What is a Stop Loss order ?

A stop loss order allows the trading member to place an order which gets activated only when the last traded price (LTP) of the share is reached or crosses a threshold price called trigger price. For example, you have a sold position in some security whose current price as of now is Rs.500. You would not like to buy the scrip for more than Rs.510 later in case the market goes against you i.e. go up. You would then put a SL Buy order with a Limit Price of Rs.510. You may choose to give a trigger price of Rs.505 in which case the order will get triggered into the market when the last traded price hits Rs.505 or above. Incase of a SL sell order, you may stop your losses beyond Rs.490 if the market falls by giving a limit price of Rs. 490 with a trigger price of Rs.495.

What are price bands?

The Exchange has fixed price bands for different securities within which they can move within a day. As per SEBI directive, all securities traded at or above Rs.10/- and below Rs.20/- have a daily price band of ±25%. All securities traded below Rs. 10/- have a daily price band of ± 50%. Price band for all securities traded at or above Rs. 20/- have a daily price band of ± 8%. But for 200 scrips the price band is fixed ± 12%. The previous day's closing price is taken as the base price for calculating the price.

Depository

Security

How Secure are my funds?

NSE guarantees each and every trade. In case of any dispute you can refer to Investor Grievances Cell, National Stock Exchange of India. For more details you can visit http://www.nseindia.com 

General

How will I know the status of my accounts?

Complete details about your Bank, demat and e-broking account shall be available toyou online 24 hours a day through the Internet. You will also be able to access all details regarding your orders and trades, trading confirmations, financial accountstatement, transaction statements, holding statements online.

Who are eligible to participate in internet trading?

All Indian Residents/ Corporates, Non Indian residents, overseas corporate bodies and FIIs are eligible.