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FAQs |
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Account Opening
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Settlements |
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Margins
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Securities Lending And Borrowing
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Trading Procedures
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Depository
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Security
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General
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Account Opening |
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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. |
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Settlements |
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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.
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Margin |
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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) |
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Securities Lending And Borrowing |
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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.
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Trading Procedures |
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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. |
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Depository |
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What
time does it take to open Demat? |
Maximum 3
Days |
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In how
many maximum name scan one account opened? |
Maximum 3
names can be included |
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If the
account, say is opened in the name(s) of A and B, can
shares standing in the name(s) of B and A be dematted in
the Account |
Yes, by
using a transposition form |
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Can
minor be a nominee ? how? |
Yes |
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Is
nominee's photograph and signature required? |
Yes |
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Is it
possible to switch charging schemes ? if so, when and how? |
Yes, client
has to submit annexure A for charge of scheme |
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Are bank
details mandatory for Account Opening? |
Yes |
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What are
the documents required to be produced for opening account? |
| Identity proof
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Pass port
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Voter Card |
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Driving license
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Pan Card
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| Address proof |
Ration Card
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Bank Passbook
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Driving License
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Pan Card
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Frequently for dispatch of various documents |
Statement
of Transactions
Statement of Holding
Account Ledger |
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Is it
possible to open account under thumb impression ? if so,
further details of operating such an account. |
Yes |
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Is it
possible to operate Account under PoA ? If so, the
standard format for PoA ? |
Yes |
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Is
partial dematerialization done by companies/RTA ? |
Yes |
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Procedure for dematerialization |
Client has
to submit DRF along with share certificate |
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Possible
reason for rejection of Demat Request |
Signature
mismatch |
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Is
transfer-cum-demat possible? |
No |
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Demat
Eligibility ? |
1] Equity
Status
2] Preference status
3] Debentures
4] Bonds
5] Mutual Fund Scheme
6] Any Other |
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Security |
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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
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General |
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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. |
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