You are unable to withdraw funds instantly for shares you’ve sold today as we settle all balance trades and funds only at the end of the trading day. Due to this, funds are settled into your account one day after you’ve sold the shares.
\n\n\nThis is the buffer amount in case stock prices go up. In these cases, you will not need to add funds again as the buffer amount will cover the new price. However, you can choose to add only the initial amount without the buffer.
\n\n\nAs per SEBI regulations, all brokers must transfer all unused funds in your trading account back to your bank account on the first Friday of either the month or quarter. This is called auto-settlement. You choose whether to receive this money monthly or quarterly, at the time of opening an account with us.
\n\n\n\nNote:
\n\n\n\nOn app,
\n\n\nTap Portfolio>Funds and tap Fund History.
\n\n\n\nUnder Withdrawals, select the request and tap Modify or Cancel.
\n\nOn web,
\n\n\nClick the dropdown beside Funds>Deposit/Withdrawal History.
\n\n\n\nUnder Withdrawal, select the request and click Modify or Cancel.
\n\nNote: You can modify or cancel your request only if it is pending and only before 7:30 pm
\n\n\nThis may happen because:
\n\n\n\nThis may happen if you’ve already placed a withdrawal request for the day or due to technical issues.
\n"},{"id":"cG9zdDoyNzQ4OQ==","uri":"/home/manage-your-funds/withdrawing-funds/trouble-withdrawing-funds/why-did-my-withdrawal-request-fail-or-get-rejected/","title":"Why did my withdrawal request fail or get rejected?","description":"\nYour withdrawal request may have been rejected because:
\n\n\n\nYour withdrawal request may have failed because:
\n\n\n\nIf your fund balance is zero, when regulatory charges are deducted from the empty balance, it goes into negative. This also happens if you haven’t settled the margin amount used for trading.
\n\n\n\nYour available funds may be zero because of auto-settlement or if your Share.Market account has been inactive for a long time
Note: You can withdraw funds again only after you’ve covered the negative balance by adding that amount to your trading account. Once your balance is positive again, you can withdraw funds.
In some cases, the funds available in your trading account may be a part of the EPI. 80% of the amount you’ve received from selling shares on a given trading day will be reflected in your trading account immediately as EPI. This amount will be available to you for trading but cannot be withdrawn. You can withdraw this amount only on the next trading day.
\n\n\nHere are a few things you should keep in mind about withdrawal requests:
\n\n\n\nYou can place one withdrawal request in a day.
\n\n\nYou can withdraw the money for the shares you’ve sold today, only on the next trading day.
You can’t withdraw them instantly because we settle all balance trades and funds only at the end of the trading day.
Here are the components in trading account:
\n\n\n| Available Funds | Amount you can invest or trade in, including opening balance and funds added during the day |
| Opening Balance | The money in your trading account at the start of the day |
| Stock Margin | 80% of the funds you’ve received from selling shares on a given trading day. This is available for trading. |
| Funds-In | Amount you’ve successfully added to your trading account in a given trading day |
| Used for Intraday | Margin you’ve used to place successful intraday trades, excluding charges |
| Used for Delivery | Amount you’ve used to place successful delivery trades, excluding charges |
| Yet to Receive | Amount you are yet to receive from selling shares. This is 20% of the sale proceeds for the given trading day |
| Yet to Pay | The charges you are yet to pay Share.Market. |
Yes, you’ll be charged auto square-off and other statutory charges if we square off or sell your positions.
\n\n\nYes, you can sell your holdings even if they are in CUSPA.
\n\n\nCUSPA is an account that we have at the depository. It holds securities you’ve bought but haven’t paid for in full yet. You will get a notification from CDSL when we move your holdings to CUSPA.
\n\n\n\nNote:
\n\n\n\nThis happens when the value of securities in your account falls below the maintenance margin. As per exchange regulations, you have to maintain adequate margins in your account to trade.
In case of margin shortfall, you will have to add additional funds or securities to meet the margin requirements. If you don’t, we will square off open positions.
Note: We will inform you through notifications, SMS, and emails if you have a margin shortfall and need to add funds.
An initial public offering (IPO) is when a private company sells shares of its stock for the first time to the public and becomes a public company.
\n\n\n\nIf you want to apply for an IPO,
\n\n\n\n*IPOs can be profitable if the company performs well after listing, however, conduct thorough research before investing. Risks include market volatility, uncertain future performance, lock-ins, listing price being lower than allotment price
\n\n\nThe Positions tab will show you a detailed breakdown of the positions of your intraday trades on a given trading day, like the average purchase price, last traded price, your unrealized profit and loss etc.
\n\n\nImportant: Intraday trading requires a good understanding of market trends, technical analysis, and risk management. Have a well-thought-out trading strategy beforehand.
\n\n\n\n| What? | The stocks or futures and options contracts that you hold during the trading day. |
| Why are they important? | It can generate profits or losses based on price movements. It lets you make fast profits (or even losses) without overnight market exposure. |
| How are they managed? | By buying and selling securities based on their trading strategy and market conditions, aiming to profit from short-term price movements. |
| Important | It demands constant market watching and involves more risk than long-term investing. |
If you’ve bought or sold shares on a given day, they will be credited from your demat account on the next trading day.
\n\n\nIf you’ve sold your shares today, you can only use only upto 80% of the entire amount on that day itself for trading. You will get this amount immediately. However, you will get the rest of the amount in your trading account only on the next trading day.
Important: In the case of BTST (Buy Today Sell Tomorrow) trades, you will receive the entire amount only on the next trading day.
| What are they? | The securities or assets that you currently own |
| Important | Market fluctuations can affect the value of holdings, potentially leading to unrealized losses. |
You can diversify your holdings by investing in a variety of assets across different industries, sectors, and geographic regions.
\n\n\nAn open order is an order that is yet to be executed. This may happen if the order quantity hasn’t been fulfilled completely or if the order has not met the price limit you’ve set.
\n\n\nYes, you can do that before they get executed.
\n\n\n\nTo modify an order, go to Portfolio>Orders>Open. Tap the order, tap Modify, and make changes.
To cancel an order go to Portfolio>Orders>Open. Tap the order and tap Cancel Order.
We automatically cancel your open orders at the end of the trading day if they are not filled.
\n\n\n| What? | An instruction to buy or sell a security. |
| Types of Orders | Market ordersLimit ordersConditional orders |
| Order State | Open orders: Orders waiting to be executed, it tracks your pending tradesClosed orders: Orders executed or cancelled. They show your trading history. |
| How are they managed? | You can monitor the status of your orders in your Portfolio section and modify them based on market conditions. |
| Important | You must regularly review and manage your open orders and align them with your trading strategy. |
If you sell your shares today, you will get up to 80% of the total amount from the sale, immediately for trading. This is called an EPI or Early Pay In. You’ll get the remaining 20% on the next trading day.
\n\n\n\nNote:
\n\n\n\nThe price of a futures or options contract is influenced by factors such as the current price of the underlying asset, the time remaining until expiry and market expectations.
\n\n\nFutures and options are available for a wide range of assets, including stocks, commodities, and indices.
\n\n\nYou can use them to hedge against price fluctuations in the underlying asset. For example, a farmer can use futures contracts to lock in a price for their crop before harvest.
\n\n\nFutures contracts require both parties to complete the transaction at the set price and date. Options contracts give the buyer the choice to buy or sell the asset, but they don’t have to.
\n\n\nImportant: Futures and options trading requires a good understanding of the market and risks. Have a well-thought-out trading strategy beforehand.
\n\n\n\n| What is it? | Derivative contracts get their value from an underlying asset. Futures contracts make the buyer buy and the seller sells the asset at a set price and date. Options contracts give the buyer the choice to buy or sell the asset at a fixed price within a certain time. The transaction need not happen mandatorily. |
| Why use it? | You can hedge against price fluctuations or speculate on the future price movements of the underlying asset. |
| Example | You buy a futures contract for 100 shares at ₹50 per share, with an expiry date of one month. If their price rises to ₹60 by the expiry date, you can sell the futures contract at a profit. |
| What is it? | Transferring shares from the seller’s demat account to the buyer’s demat account once the trade is executed. |
| Why use it? | Allows investors to buy and hold shares for the long term. It is used for long-term investment purposes. |
| Good to Know | There is ownership of shares and potential for long-term capital appreciation. It is used for long-term investment purposes. |
Yes, you can transfer shares from your demat account to another person’s demat account through off-market transfer.
\n\n\n\n\n"},{"id":"cG9zdDoyNjQwMA==","uri":"/home/new-to-investing/about-portfolio/about-delivery/are-there-any-charges-for-taking-delivery-of-shares/","title":"Are there any charges for taking delivery of shares?","description":"\nWe don’t charge any brokerage.
\n\n\n\n\n"},{"id":"cG9zdDoyNjM5MQ==","uri":"/home/new-to-investing/about-portfolio/about-delivery/can-i-immediately-sell-the-shares-that-i-have-as-delivery/","title":"Can I immediately sell the shares that I have as delivery?","description":"\nYes, you can sell shares that you have taken delivery of at any time. However, remember that if you sell the shares on the same day, it will be considered an intraday trading.
\n\n\n\n\n"},{"id":"cG9zdDoyNjM4Mg==","uri":"/home/new-to-investing/about-portfolio/about-delivery/how-long-does-it-take-for-shares-to-be-delivered-after-a-trade/","title":"How long does it take for shares to be delivered after a trade?","description":"\nShares are typically to your account delivered within two trading days after the trade date.
\n\n\n| What is it? | Transferring shares from the seller’s demat account to the buyer’s demat account once the trade is executed. |
| Why use it? | Allows investors to buy and hold shares for the long term. It is used for long-term investment purposes. |
| Good to Know | There is ownership of shares and potential for long-term capital appreciation. It is used for long-term investment purposes. |
Yes, you can place a conditional limit order for any stock, but it’s important to consider the liquidity and volatility of the stock when setting trigger conditions.
\n\n\nThere are no additional fees.
\n\n\nYes, you can usually cancel or change a conditional limit order before it is triggered.
\n\n\nIf the trigger condition is met but the stock price moves away from your limit price, your order may not be executed at the desired price.
\n\n\n| What is it? | An order which gets executed only if certain conditions are met. |
| Why use it? | Gives you control over your prices and trades, potentially getting a better price than the current market price. |
| Example | You buy 10 shares of a company if its price reaches ₹100 per share. Once the price hits ₹100, the order becomes a limit order to buy at ₹100 or less. |
| Good to Know | If the trigger condition isn’t met, the order won’t go through. |
| Important | Ensure the trigger price is realistic and in line with your trading strategy. Your trade is placed automatically based on specific conditions. |
Yes, you can place a limit order outside of regular trading hours, but it will only be executed when the market is open.
\n\n\nYes, you can usually change or cancel a limit order before it is executed.
\n\n\nYour order will not be executed, and you may need to adjust your limit price or place a new order.
\n\n\n| What is it? | An order to buy or sell a stock at a specific price (or better). |
| Why use it? | Allows you to set the price at which you buy or sell. |
| Example | You can place a limit order to buy 10 shares of company Z at ₹100 per share or less. |
| Good to Know | If the specified price hasn’t reached, the order may not get executed, and you may miss out on a trade. |
The only risk is, that the price at which your order gets executed may not be the same as the price when you placed the order, especially in volatile markets.
\n\n\nThe price at which the order gets executed may be different from the price when you place the order, especially in volatile markets.
\n\n\nMarket orders are usually executed within seconds or less.
\n\n\nNo, a market order is executed at the best price available when it’s placed.
\n\n\n| What is it? | An order to buy or sell a stock immediately at the current market price. |
| Why use it? | Quick execution, guarantees trade execution. Best for highly liquid stocks. |
| Example | Buy 10 shares of a company at the best available price. |
| Important | Price is not guaranteed with the risk of price fluctuations. |
Your verification may have failed as the number on the PAN card image you’ve uploaded doesn’t match the PAN you’ve entered.
\n\n\n\nPlease enter the correct PAN or share the correct PAN card image to make sure the details match.
\n\n\nTo do this,
\n\n\n\n1. Download the account closure form and fill it out digitally.
2. Add a scan or photograph of your signature along with the Client Master Report (CMR) from the other broker. Make sure the CMR is digitally signed by the official of that broker.
3. Merge the account closure form with the CMR copy and e-sign it.
To e-sign,
\n\n\n\nOnce you have downloaded the e-signed form,
\n\n\n\nWhen you sell a share, the depository deducts DP charges. Since these charges aren’t deducted right away, we deduct a ‘provisional depository charge’ instead. When the actual DP charge is deducted later, we will deposit back the provisional depository charge to your ledger. So, there’s no extra money taken from your ledger.
\n\n\nPlease send an email to responses@share.market from your registered email ID and we’ll help you.
\n\n\nAs per our physical settlement policy, we will be blocking the contracts mentioned:
\n\n\n\n| Instrument | Expiry | Order Type | Status |
|---|---|---|---|
| Futures | In every current month expiry day | Intraday | Allowed |
| Futures | In every current month expiry day | Overnight | Only square off allowed. Fresh order blocked |
| Options | In every current month expiry day | Intraday | Fresh order blocked |
| Options | In every current month expiry day | Overnight | Only square off allowed. Fresh order blocked |
Due to illiquidity and high volatility, the exchange restricts the trading of certain strike prices for stock options.
\n\n\nYou may be getting a mismatch error because the display name or date of birth on your PAN card doesn’t match the details the income tax department has.
\n\n\n\nYou will need to correct your name or date of birth in your Digilocker PAN or the PAN card image you’re uploading.
\n\n\nYou will still be able to execute trades from your watchlist at actual prices even though the data (profit/loss, average prices, etc.) you see is incorrect. You can check the contract note to confirm the actual prices your trades were executed at.
\n\n\n\nIf this issue continues, please tap below to create a ticket and we’ll help you with this.
\n\n\n\nNote: Profit & loss is calculated at original price once the trade is done.
\n\n\n\n Need help with an order?\n
\n \nYour order was rejected because you’ve set a disclosed quantity of more than 10% of the actual quantity. For equity orders, the disclosed quantity should not exceed 10% of the actual quantity.
\n\n\n\n Need help with an order?\n
\n \nYour order was cancelled with this error because the limit order price you set is not within the Limit Price Protection (LPP) range for index/stock F&O contracts.
\n\n\n\nNote:
\n\n\n\n\n Need help with an order?\n
\n \nTo unpledge your shares,
\n\n\n\nTo pledge your shares,
\n\n\n\nYou will then be redirected to the CDSL pledge authorization page. After this, authorize the pledge request using the OTP received on your registered mobile number.
\n\n\n\nNote: After you’ve successfully pledged the shares, the margin will reflect in your trading account before the beginning of the next trading day.
\n\n\nIt takes one day for the unpledging process to complete from the day on which you have placed the request. After which you can initiate the rebalance/withdrawal. In case you are still not able to sell, please reach out to us for help.
\n\n\nTo completely withdraw from your WealthBasket holdings you will need to first unpledge the stocks you have pledged with us. Post this, you can exit from your WealthBasket. Please note that unpledging of stocks will require T+1 day, so accordingly, you will be able to exit your WealthBasket on the next day. In case only a part of your WealthBasket holdings are pledged then you can initiate a partial withdrawal by immediately selling the stocks that are not pledged. You can sell rest of your holdings after the unpledging process is done to complete the withdrawal.
\n\n\nYou can initiate the rebalance one day after you have initiated unpledgeing process and you have received confirmation that your shares have been unpledged successfully.
\n\n\nIf you have pledged all of your WealthBasket holdings and margin is already in use, you’ll need to close some existing positions that are using that margin first. This will free up the margin for rebalancing. If only a part of your WealthBasket holdings is pledged then you may initiate a partial rebalance.
\n\n\nRebalancing your portfolio without unpledging depends on your available funds:
\n\n\n\nIf all holdings are pledged: You’ll need to unpledge holdings before you can initiate rebalancing.
\n\n\n\nIf you have partially pledged holdings: You can partially rebalance by selling the stocks that are not pledged from your holdings and buy the recommended shares as per rebalance to the extent of proceeds available from the sell order. This may impact your WealthBasket’s performance.
\n\n\nPartial rebalancing allows you to adjust your WealthBasket portfolio composition even if some of your holdings are pledged as collateral. During a partial rebalancing, you can only sell the portion of your holdings that is not pledged. The proceeds from selling these holdings are then used to buy new shares as per the rebalancing recommendations to the extent of funds available.
\n\n\n\nIf the value of such holdings is insufficient to cover the entire recommended purchase of new shares, the rebalancing will be done to the extent of shares that can be funded by the partial sale. You may choose to rebalance your WealthBasket in the next rebalance update, but please keep in mind that by doing so your WealthBasket’s performance may get impacted.
\n\n\nIf all of your holdings are pledged then you will not be able to initiate a rebalance. However you can initiate a partial rebalance if only a part of your holdings is pledged. The shares that have not been pledged from the holdings can be sold and the funds received from the same can be used for buying the recommended stocks to the extent of the funds received. To complete the whole rebalance you will need to unpledge the remaining stocks and buy the remaining recommended quantity of shares.
\n\n\nYes, you can pledge stocks held in your WealthBasket just like normal stocks. However, if those stocks are supposed to be sold during an upcoming rebalance update, then you will need to unpledge them before initiating rebalance and selling the stocks.
\n\n\nThe F&O contracts of stock are banned once the open interest of any stock crosses 95% of the market-wide position limits (MWPL). During the ban period, new positions for stock F&O contracts are prohibited. However, exiting existing positions is permitted. The stock is still able to be traded in the cash segment without any restrictions.
\n\n\nFor those who trade on stock derivatives, there is a process where traders deliver or receive the shares. To take or give delivery of the entire contract value worth of stocks, one must either have full cash or stocks post-expiry. Therefore, this increases the risk and the below policy will be followed:
\n\n\n\nAs per our policy, once any equity scrip crosses 15%, fresh positions will be blocked and existing open reverse side positions will be squared off by the risk team. You will get a notification before the square-off.
\n\n\nCurrently, the options percentage range is set at 20% for both index options and stock options
| Index Options | Buy | 20% range set from LTP |
| Index Options | Buy | 20% range set from LTP |
| Stock Options | Sell | 20% range set from LTP |
| Stock Options | Sell | 20% range set from LTP |
Note: If the Nifty Index is currently ₹20,000 (LTP) with a given 20% range restriction translating to ₹4,000 (20% of ₹20,000), your tradeable strike price should fall within the ₹16,000 – ₹24,000 bracket for any option expiry.
\n\n\nLimit orders are generally rejected if you place an order that is outside the trading range mandated by the exchanges for that day. Always check the trading range for a particular stock or F&O contract whenever you are placing an order that is more than 5% away from the current market price.
\n\n\n| Action | Obligation | Description |
| Buying a Call Option | Buyer has the right, but not the obligation, to buy the underlying asset at the strike price on or before the expiration date. | The buyer pays a premium for this right. If the underlying asset price increases above the strike price by expiration, the option becomes profitable. If the price stays below or falls, the option loses value and expires worthless. |
| Selling a Call Option (Naked Call) | Seller has the obligation to sell the underlying asset at the strike price if the buyer exercises the option, even if they don’t own it. | This strategy is riskier as the seller has unlimited potential losses if the price rises sharply. Requires a margin deposit and carries high risk. |
| Buying a Put Option | Buyer has the right, but not the obligation, to sell the underlying asset at the strike price on or before the expiration date. | The buyer pays a premium for this right. If the underlying asset price falls below the strike price by expiration, the option becomes profitable. If the price stays above or rises, the option loses value and expires worthless. |
| Selling a Put Option (Naked Put) | Seller has the obligation to buy the underlying asset at the strike price if the buyer exercises the option, even if they don’t have the cash. | This strategy is riskier as the seller has unlimited potential losses if the price falls sharply. Requires a margin deposit and carries high risk. |
When a stock hits upper or lower circuit limit the underlying futures and options contracts keep on trading irrespectively as long as the participants and the market makers are actively involved in trading them.
\n\n\n\nThis phenomenon can be attributed to the independent valuation of futures and options, which draws upon factors such as volatility, time decay, and interest rates, rather than solely mirroring the immediate supply and demand dynamics of the underlying stock.
\n\n\nThe freeze quantities for tradeable market indices of BSE and NSE are as follows:
\n\n\n\n| Sl. No. | Index Name | Freeze Quantity(in units) | Freeze quantity(in lots) |
| 1. | NIFTY | 1800 | 36 |
| 2. | BANKNIFTY | 900 | 60 |
| 3. | FINNIFTY | 1800 | 45 |
| 4. | MIDCPNIFTY | 5500 | 56 |
| 5. | SENSEX | 1000 | 100 |
| 6. | SENSEX50 | 1800 | 36 |
| 7. | BANKEX | 900 | 60 |
Freeze quantity refers to the maximum number of lots a trader can buy or sell in a single order for a particular equity or index F&O contract. If the number of lots exceeds the freeze quantity then your order will be rejected. In order to buy more lots you can choose to place another order with a quantity that is less than or equal to the maximum defined quantity as defined by the exchanges.
\n\n\n\nThe purpose of the freeze quantity is to:
\n\n\n\nNSE prevents self-trade (traders who have multiple orders open for a scrip and are likely to match with each other) using a mechanism. If an active order comes in and is likely to match with any passive unmatched orders in the system, in the same order book belonging to the same client, then either the active or passive order will be cancelled by the exchange.
Note: This is applicable for all Day and IOC order types; limit, market, stop loss, and stop loss-market.
Here are the different pledge statuses:
\n\n\n\nTo register for Easiest,
\n\n\n\nThe registration is now complete. Once we authenticate your request, CDSL Easiest will be activated for the BO ID within 48 working hours.
\n\n\nTo transfer shares from Share.Market to another demat account:
\n\n\n\nYour transfer request will then be sent to the Depository Participant (DP) for confirmation. Once approved, the transfer will be done.
\n\n\n\nNote:
\n\n\n\nAccording to CDSL guidelines, if you open more than 5 demat accounts in a month, you must confirm that you opened your demat account with us. This is to prevent unauthorized trades.
\n\n\n\nPlease tap the button below to confirm.
\n\n\nYou won’t be charged any brokerage for margin pledging. Tap here for more details.
\n\n\nAfter pledging your stocks you will receive the collateral margin in your account on T+1 day. You can then initiate an unpledge transaction to release these stocks for sale on T+1 day itself. Your unpledged shares will be available for selling on T+2 day
\n\n\n\nLet us understand this with an example
\n\n\n\nOn Monday, you submit a request to pledge 100 shares of Company XYZ to receive collateral margin.
\n\n\n\nOn Tuesday (one business day after your request), your account shall reflect the collateral margin you shall receive against those 100 shares. You can then initiate an unpledge transaction on T+1 day itself and your shares shall get unpledged on T+2 day i.e Wednesday.
\n\n\nOnce you’ve placed your request to unpledge shares, and we’ve accepted it, the unpledged shares will reflect in your demat account only on the next trading day (T+1). You can then sell your unpledged shares on the following trading day (T+2).
\n\n\n\nLet’s understand this with an example. On Monday, you submit a request to pledge 100 shares. On Tuesday, you will receive the relevant collateral margin in your account for the pledged shares. On Tuesday itself, you can place a request to unpledge these shares. However, you will be able to sell these unpledged shares only on Wednesday.
\n\n\nYour pledge request may be rejected if:
\n\n\n\nIn these cases, please try raising the pledge request again after some time or reach out to us for help.
\n\n\nIn margin pledging, you grant the broker the right to sell your pledged shares if you fail to meet a margin call (a demand for additional funds because of falling market values). This is done through CDSL (Central Depository Services Limited) authorization. It protects the broker from financial losses in case you cannot repay the borrowed margin. CDSL authorization is important because:
\n\n\n\nYou can raise your pledge and un-pledge requests between 9 am and 4 pm on all business days.
\n\n\nThe margin available for your holdings on a given trading day, is either the price at which the holding closed on the previous trading day or the lowest price at which the holding traded on that day, whichever is lower.
\n\n\n\nThis margin calculation accounts for potential intraday fluctuations and helps manage the risks related to volatile markets.
\n\n\nAs per our internal risk management parameters, we can increase the amount of haircut beyond the exchange mandated amount. Hence you may see a difference in the amount you have received in your pledged margin compared to exchange or other platforms.
\n\n\nThere are several reasons why some of your holdings might not be available for pledging:
\n\n\n\nYou can refer to the following table to understand the cash requirement for each type of trade.
\n\n\n\n| Segment | Type of transaction | Usage limit per position |
| Equity Intraday | Buy and Sell both | 50% pledged margin & 50% cash |
| Equity& Index Futures | Buy and Sell both (Intraday & Overnight positions) | 50% pledged margin & 50% cash |
| Equity & Index Options | Sell Only(Intraday & Overnight positions) | 50% pledged margin & 50% cash |
Note:
\n\n\n\nThe margin for pledged shares will reflect in your trading account before the beginning of the next trading day, after the shares have been pledged.
\n\n\nPledging shares as collateral won’t cause any tax implications since you’re not transferring ownership of the asset. Instead, you’re only granting us the right to sell the shares under specific circumstances.
\n\n\nWhile both margin pledging and margin trading involve using borrowed funds to amplify your buying power in the stock market, they differ significantly in how they operate and their associated risks. This chart will help you understand the same:
\n\n\n\n| Feature | Margin Pledging | Margin Trading |
| Borrowing source | Existing holdings | Broker’s funds |
| Collateral | Pledged assets (haircut applied) | Purchased securities |
| Borrowed amount | Portion of asset value | As per the leverage provided by the broker and exchange rules |
| Risk | Market volatility | Market volatility and price movement of purchased securities |
| Benefits | Increased buying power | Greater leverage, ability to short-sell |
Yes, you can sell your pledged shares, but only after they are un-pledged.
\n\n\n\nIf you have active trading positions that currently utilize the margin you received from your pledged shares or any other form of holding, it’s highly recommended to square off (close) those positions before selling the pledged shares. This ensures you avoid any potential issues related to margin requirements and potential margin calls.
\n\n\nIt’s important to understand that the margin you receive from your pledged holdings can fluctuate based on the changing value of those holdings. This is due to the concept of haircut, which is a percentage deduction applied to the market value before calculating the margin.
\n\n\n\nThe value of your pledged holdings and, consequently, the available margin, are recalculated based on the lower of closing price of the previous day or the intraday low in case the stock falls further from the previous day’s low. This adjustment is reflected in your account on a live basis.
\n\n\n\nFor example, if you pledge stocks whose holdings are valued at ₹1,000 with a 20% haircut, you will get a margin of ₹800 (₹1,000 x (1 – 20%)).
\n\n\n\nIf the stock price drops to ₹900 on the same day of closing, then the margin will be recalculated based on the new value:
\n\n\n\nNew margin = ₹900 x (1 – 20%) = ₹720
\n\n\n\nIf on the current day, the intraday low of ₹890 is made then the value of the margin will be recalculated based on this new low which will come out to be ₹712. This new margin will be reflected in your account on a live basis.
\n\n\nIf your demat account is in good standing and your holdings are approved by both the exchange and our RMS team, you can pledge your shares to receive margin funding benefits.
\n\n\nHere are some risks of margin pledging:
\n\n\n\nThere are two main benefits of margin pledging:
\n\n\n\nMargin pledging allows you to utilize your existing assets (stocks, ETFs, mutual funds, or bonds) as collateral to obtain additional borrowing power from your broker. This increased buying power, known as margin, can be used for intraday trading or to initiate positions in derivative markets.
\n\n\n\nCurrently at Share.Market you can pledge your stock and ETF holdings to receive margins.
\n\n\n\nHere’s a breakdown of how it works and the associated risks:
\n\n\n\nMargin pledging is a facility offered by stock exchanges, adhering to SEBI guidelines, that allows you to utilize your existing holdings as collateral to obtain additional trading margins. These margins can be used for intraday trading or to initiate positions in the derivatives segment of the exchange. This provides investors with leverage, allowing them to trade without needing additional funds in their accounts solely for margin settlement.
\n\n\n\nOn our platform, you can use your pledged margins for the following:
| Segment | Type of transaction | Usage limit per position |
| Equity Intraday | Buy and Sell both | 50% pledged margin & 50% cash |
| Equity& Index Futures | Buy and Sell both (Intraday & Overnight positions) | 50% pledged margin & 50% cash |
| Equity & Index Options | Sell Only(Intraday & Overnight positions) | 50% pledged margin & 50% cash |
Note:
\n\n\n\nThe price of your transferred holdings may not be updated on Share.Market as this transfer of shares was done from a demat account of a different broker or if you had applied for an IPO outside Share.Market.
\n\n\n\nTo update the prices, tap the Fix Now button visible on your holdings screen. Select the scrip with discrepancies and tap Fix. You can then enter the date and average price and tap Save Details. Your updated details will be visible by the next trading day.
\n\n\nYes, you can. However, if you sell them without adding the buy price, the previous closing price of the shares on the date you transferred them will be considered as the purchase price. The same price will be used to compute your tax profit and loss. Hence, it is advisable to update the buy price before selling the transferred shares.
\n\n\nAs you’ve transferred shares from a different broker, the price won’t be visible immediately on your app or web.
\n\n\n\nTo update the prices, tap the Fix Now button visible on your holdings screen. Select the scrip with discrepancies and tap Fix. You can then enter the date and average price and tap Save Details. Your updated details will be visible by the next trading day.
\n\n\nThe settlement price is the price of a security that is quoted once the trading session of a particular exchange is over.
\n\n\n\nThere are two types of settlement prices: Daily settlement price and final settlement price.
\n\n\n\nA Bhav Copy, is abbreviated from the Hindi word ‘Bhav’ which means price. It is a document with a summary of trading activity for a single day on a specific stock exchange (NSE, BSE, MCX, etc). It includes the opening price, highest and lowest prices, closing price, trading volume, and last traded price for all securities traded on that day on the exchange.
\n\n\nThe prices displayed on the chart for illiquid options may not always reflect their fair value at closing. This is because, unlike liquid options where the settlement price is calculated as the weighted average over the last 30 minutes of trading for the day, illiquid options see less frequent trading activity and hence will not have enough trades (Or no trades at all) for calculating the weighted average in the last 30 minutes.
\n\n\n\nSo to provide users with a better understanding of closing prices for illiquid options, we rely on settlement price values provided by the exchange in the “Bhav Copy” instead of the last traded price(LTP) which is reflected in the charts. Here is some data that offers a more accurate representation of their closing value since it is calculated as per the formula prescribed by the exchange.
\n\n\n\nTherefore, you may observe discrepancies between the chart and positions tab prices for illiquid option strikes.
\n\n\nYou may be unable to sell your holdings because:
\n\n\n\nYou may be unable to place an order with a specific strike price because as per RMS policy, the price limit is 20% of the last trading price (LTP) for index options and 10% of LTP for stock options.
\n\n\nYour F&O activation may have been rejected as your income tax returns do not indicate earnings of greater than ₹1.2 lakhs per year.
\n\n\nHere are a few things you should keep in mind about withdrawal requests:
\n\n\n\nThe Exchange calculates the peak margin during the trading day and determines if there is any deviation from the required margin (upfront/overall margin) as required. The exchange will impose a 1 % penalty on the shortfall amount during the trading day.
If the shortfall persists for three days, the penalty will increase by 5%.
A hedged position implies taking a sell and buy position simultaneously. It’s crucial to square off the leg of the transaction with a higher margin requirement first when squaring off the hedge position. Failure to follow this method could result in a spike in your peak margin requirement. If there is a shortfall in the margin, it could result in a penalty.
\n\n\nThe peak margin penalty is imposed on stock broking companies, not on the client. The broker is responsible for reporting any shortfall in peak margin collection and paying a penalty for it. The daily penalty is between 0.5% and 5% of the shortfall amount.
\n\n\nFutures in the derivatives sector will always have a higher margin than a hedge position of a Buy Option. Therefore, it is necessary to square off the futures part of the hedged position first.
Additionally, Sell Options will always have a higher margin than a Buy Options hedge position. Hence, it is necessary to offload Sell Options first to prevent any margin shortfall.
For F&O, the margin required is SPAN + Exposure.
For stocks, the margin required is VAR + ELM.
Peak margins are margins that are regulated and introduced to improve leverage control. The introduction of Peak Margin has led to a reduction in excessive speculation due to the upfront collection of margins. Peak Margins became effective on December 1st, 2020, unlike the old way, which was at the end of the day. SEBI implemented it to achieve greater transparency in trade.
\n\n\nAll your pending orders will be cancelled except Equity Delivery Buy and Options Buy and you’ll not be able to take fresh positions.
\n\n\nShare.Market will send the notifications at 50% to add funds whenever you are at risk.
\n\n\nYes, fresh positions can be created after the MTM square off.
\n\n\nThe trigger will occur once the available margin for a client has been reduced by 70%*.
\n\n\nThe risk containment feature is used to safeguard clients who have margins that have eroded more than a percentage(%) set by the RMS from time to time. When M2M loss crosses a certain percentage(%) of the clients’ available margin at a certain point, the risk team will attempt to close all F&O positions.
\n\n\nImportant: It is mandatory to register the buyer’s demat account as a beneficiary under your demat account if you want to sell securities off-market. CDSL will process your off-market transactions only if this is done.
You can sell securities off-market by first registering the buyer’s demat account as a beneficiary under your demat account. You can do this through your DP or Easi/Easiest login.
To trade any weekly option contract you can use the universal search bar and search for the index name along with the strike price. Weekly contracts will be the first ones to appear on the list. You can then choose between PE or CE and add the contract to your watchlist. For example, to find Nifty 21000 strike options, enter ‘Nifty 21000’ on the universal search bar.
\n\n\nAll stock options expire on the last “Thursday” of the month of expiry.
Different weekly options on the other hand expire on different days as follows:
| INDEX | DAY OF EXPIRY |
| MIDCAP NIFTY | EVERY MONDAY |
| BANKEX | EVERY MONDAY |
| FINNIFTY | EVERY TUESDAY |
| BANKNIFTY | EVERY WEDNESDAY |
| NIFTY | EVERY THURSDAY |
| SENSEX | EVERY FRIDAY |
When an options contract expires out of the money, the buyer of the option loses the complete premium while the seller of the contract can keep the premium with himself as profit.
\n\n\nAn exercise date is the date on which the option is actually exercised and physical or cash settlement between the seller and the buyer takes place. For European options which are used on Indian exchanges primarily, the exercise date is the same as the expiry date.
\n\n\nThe expiry date marks the point at which the option contract concludes. On this day, you have the option to either exercise it or let it expire without any action. Subsequent to the expiry date, the option loses its value and becomes worthless.
\n\n\nPremium is the cost of obtaining the right to buy (in the case of a call option) or sell (in the case of a put option) the underlying asset. The buyer pays a premium to the seller for the option in order to compensate for taking the risk.
\n\n\nHere are some key features which differentiate futures from options:
\n\n\n\n| Feature | Options | Futures |
| Contract Type | Gives the holder the right, but not the obligation, to buy/sell an asset at a specific price. | Obligates the buyer to purchase, or the seller to sell, an asset at a predetermined price. |
| Obligation | Holder has the choice to exercise or not exercise the contract. | Both parties are obligated to fulfill the terms of the contract. |
| Market Participation | Used for speculation, hedging, and generating income through premiums. | Primarily used for hedging against price fluctuations. |
| Risk and Reward | Limited risk (premium paid) with potentially unlimited profit. | Unlimited profit potential but also unlimited risk. |
| Market Accessibility | More accessible to retail investors due to lower capital requirements. | Typically requires larger capital due to the margin requirements. |
| Flexibility | Provides flexibility as traders can choose not to exercise the option. | Less flexible as the contract must be fulfilled at the agreed-upon terms. |
| Leverage | Provides leverage through premium payment. | Involves leverage through margin requirements. |
| Underlying Asset | Can be based on various underlying assets (stocks, commodities, indices). | Usually involves commodities, financial instruments, or indices. |
| Price Determination | Premium is influenced by the underlying asset price, volatility, time to expiration, and interest rates. | Influenced by the spot price of the underlying asset and expectations of future prices. |
| Termination | Options can be exercised at any time before expiration or left to expire. | Futures contracts must be fulfilled on the expiration date unless offset earlier. |
Volumes represent the quantity traded within a specific timeframe, providing insights into the market activity during a particular period.
\n\n\n\nOn the other hand, open interest denotes outstanding positions, offering valuable information about the extent of interest in a specific security. Open interests serve as an indicator of market depth, revealing the level of engagement and participation in a given market currently.
\n\n\nThe theoretical futures price represents an expected price at expiry. When this price which can either be at a premium or discount deviates significantly from the spot price of the underlying asset, a natural market correction occurs driven by supply and demand forces.
\n\n\n\nConsider an instance where an underlying asset’s price significantly exceeds the futures price. This creates an attractive opportunity to purchase the seemingly cheap futures contracts instead of the expensive physical asset and close the position at expiry by taking delivery of the underlying asset.
\n\n\n\nThis increased demand for futures contracts pushes its price upward towards the asset’s price level. Simultaneously, the high price becomes unsustainable as users opt for the more affordable futures contracts.
\n\n\n\nThis shift in demand exerts downward pressure on the physical price, ultimately pushing the spot price of the underlying asset and the futures contract towards a state of convergence, or a balanced equilibrium prior to expiry. This highlights the critical role of the cost of carry in aligning futures prices with the expected future physical price.
\n\n\nThe settlement price is the value at which all outstanding trades are settled between buyers and sellers, involving the payment of any profits or losses. Typically, it is a weighted average derived from transaction prices in both the spot and futures markets over a specified period.
\n\n\nWhen a futures or options contract is executed by paying the money difference rather than by delivering the underlying asset to close a position on the expiry of the contract, it is called a cash settlement.
\n\n\nTo avoid any counterparty default, only those stocks that meet the liquidity and volume criteria set by the exchange and SEBI are available for futures trading irrespective of whether they are in the F&O list or not.
\n\n\nThese are the benefits that options trading offers:
\n\n\n\nThere are two scenarios in which you can use a limit order as a market order:
\n\n\n\nBy doing so your limit order will get the first priority and you will be able to execute your order at the highest price at which the seller or buyer is ready to sell or buy shares.
\n\n\nIn the F&O segment, open interest (OI) refers to the total number of outstanding or unclosed contracts for options and futures at a specific point in time. It tells you about the activity and sentiment in the market for a particular underlying asset.
\n\n\n\nAn increased OI indicates a high volume of trading and strong market sentiment for the underlying asset. While decreased OI suggests reduced trading activity and possibly weakening sentiment in the market.
\n\n\nTrading futures and options in Indian markets offers high potential returns but also carries significant risks. Here are some key risks to consider:
\n\n\n\nBefore you venture into F&O trading, it’s crucial to:
\n\n\n\nTo activate F&O, tap your profile picture >Account Information > Activate F&O.
\n\n\n\nOnce you’ve done this, you will need to upload any one of the below documents as income proof if you have less than ₹1000 in holdings:
\n\n\n\nOnce the request is placed, the F&O segment will be activated for your account within 2-3 working days.
\n\n\nTo activate your F&O segment, you need to submit any one of the below documents as income proof:
\n\n\n\nAn option chain is a detailed table that shows all available strikes of options for a specific instrument on a certain expiry date. It includes key information like all the strikes of call or put, expiry date, price data (current, buy, sell), and open interest (OI). Analyzing this information helps traders make informed decisions about buying, selling, or holding options.
\n\n\nThe option premium is the amount paid by an option buyer to gain the privilege of buying or selling an underlying financial instrument. It functions as compensation provided to an option writer in return for undertaking the obligation to buy or sell the option contract. For example, imagine you want to buy a special ticket. This ticket gives you the choice to buy or sell something later, but you have to pay for it right now. That cost is the option premium.
\n\n\n\nThe person who sells you the ticket (the option writer) gets the premium as their reward for giving you that choice. They also take on the risk of having to buy or sell something later, depending on which option you choose. Let’s see why this is useful:
\n\n\n\nHere are some key features of options contracts
\n\n\n\n
In Indian markets all option contracts are European, hence you may see PE written against put options which is short for “Put European” and CE written for call options which is short for “Call European”.
The strike price is the predetermined price at which the buyer of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset by exercising the option contract. There are three types of options based on strike price as follows:
\n\n\n\nIn general, ITM options are the most expensive, followed by ATM options, and OTM options are the cheapest. The further the strike price is from the current market price, the cheaper the option will be.
\n\n\nA put option gives the buyer the right, but not the obligation, to sell the underlying asset at the agreed-upon strike price before or at the expiration date. If you buy a put option then at the end of expiry you get the right to sell the underlying security at the strike price of the option you have chosen, you can also forfeit this right by not exercising the option. The seller (writer) of the put option has the obligation to buy the underlying asset if the buyer decides to exercise the option.
\n\n\n\nFor example, consider Reliance is trading at ₹2500. If you buy a put option with a ₹2500 strike price and a ₹100 premium, and on the expiry date, Reliance is trading at ₹2200, you can exercise the put option. This allows you to sell Reliance shares at ₹2500 to the option writer. In this scenario, you profit ₹200 per share (₹2500 – ₹2200 – ₹100), while the option writer incurs the same loss. It’s essential to note that option premiums change dynamically in live markets, prompting traders to engage in both intraday and delivery trades to capitalize on these fluctuations.
\n\n\nWhen you sell an option you act as a writer of the option and therefore receive a premium in your fund balance. If you close the position the funds get readjusted against the premium received, and thus you may see funds being deducted if the profit from the position is less than the premium received.
\n\n\n\nFor example, if you sold one lot of Nifty futures and received a premium of ₹10,000 against it in your Funds tab then closed the position at say ₹5,000 profit then accordingly your funds will be adjusted. Hence ₹5,000 will be debited from your account instead of getting credited.
\n\n\nA call option gives the buyer the right, but not the obligation, to purchase the underlying asset at the agreed-upon strike price before or at the expiration date. If you buy a call option then at the end of expiry you get the right to buy the underlying security at the strike price of the option you have chosen, you can also forfeit this right by not exercising the option. The seller (writer) of the call option has the obligation to sell the underlying asset if the buyer decides to exercise the option.
\n\n\n\nFor example, if Reliance is currently trading at ₹2500 and you buy a call option with a ₹2500 strike price and a ₹100 premium, and on the expiry date, Reliance is trading at ₹2800, you can exercise the option to buy shares at ₹2500 from the option writer. In this case, you profit ₹200 per share (₹2800 – ₹2500 – ₹100), while the option writer incurs a corresponding loss. Note that option premiums fluctuate in live markets, and traders also engage in intraday and delivery trades to capitalize on these changes.
\n\n\nIf you have insufficient stock holdings in your demat account for physically settled F&O contracts on the expiry day, you’ll be granted the option to purchase the required shares on the same day. Such purchases are deemed valid for fulfilling delivery obligations and comply with regulatory requirements regarding obligation netting between the F&O and capital market segments on corresponding trading dates.
\n\n\n\nFor delivery positions, you should have stocks in the demat account on the expiry day. If sufficient stocks in the demat account are unavailable, then this will lead to short delivery and auction penalties.
\n\n\nOptions contracts are financial instruments that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (the strike price selected while buying) within a specified period (until the expiration date). There are two types of options: call option (bought when you are bullish) and put option (bought when you are bearish).
\n\n\n\nOptions are widely used for various purposes, including speculation, hedging, and risk management. Traders may use options to profit from price movements, protect against potential losses, or generate income. The flexibility and strategic possibilities offered by options make them a versatile tool in the financial markets.
\n\n\nMaintaining adequate F&O margins, either in cash or pledged collateral, is crucial for the physical settlement of open stock positions at expiry. In cases where no cash balance is available but sufficient collateral has been pledged, the underlying assets will be delivered to your demat account.
\n\n\n\nHowever, please remember that your funds statement will reflect a negative balance equal to the settlement value and associated charges. This negative balance will accrue interest until your account is funded or the pledged collateral or holdings are liquidated as per our policy.
\n\n\nWith a futures contract, you can either take a long position or a short position.
\n\n\n\nIf you sell your holdings then as per mandate you will receive 80% of the value of your holdings. The remaining funds will be released into your account on the next trading day. You can use these funds for purchasing other shares, initiate F&O trades as well as for intraday trades.
In case you want to repurchase your holdings back then you will not be able to purchase the whole value of the shares you have sold but only 80% of the value of shares with the money credited.
We recommend you not initiate any intraday trades with the credited margins if you want to repurchase your holdings on the same day, as it may lead to a margin penalty by the exchange as per rules.
\n\n\nThe premium that you receive for writing options can only be used for another F&O trade and cannot be used for buying equity shares.
\n\n\nIn Indian F&O markets, individual securities are subject to position limits defined by the market-wide position limit (MWPL). This limit is expressed as a percentage of the security’s freely tradable stock and aims to prevent excessive speculation and maintain market stability.
\n\n\n\nAt the close of each trading day, the exchange aggregates the open interest across all exchanges for each security’s futures and options contracts. This open interest is then compared to the corresponding MWPL. If the open interest for any security exceeds 95% of its MWPL, that security enters a ban period.
During the ban period, new futures and options positions on the affected security are prohibited. Existing positions, however, can be closed or reduced through offsetting transactions. This temporary restriction on fresh positions allows the open interest to decline and facilitates a return to normal market conditions. Normal trading resumes once the aggregate open interest across all exchanges falls below 80% of the MWPL for the designated security.
Note: There is no MWPL for index futures and options contracts.
\n\n\nBased on the nature of corporate action, adjustments will be done in the base price, option strike values, and the market lot of the contracts, as per the adjustment factor.
\n\n\n\nAdjustments for corporate actions aim to ensure that the value of market participants’ positions on the cum and ex-dates remains as consistent as possible. This helps maintain the relative status of positions, such as in-the-money, at-the-money, and out-of-money.
\n\n\n\nIn certain instances, adjustments may lead to the alteration of the contract’s expiration date, prompting the contract to be forcibly closed before the initial expiry date. Subsequently, adjusted contracts will be introduced for trading in its place.
You can refer to this exchange link to find out the exact methodology used by NSE to calculate the effect of different corporate actions and the adjustment factors used for the same.
In-the-money options or futures contracts of stocks that have expired are physically settled as per exchange rules. In this case you shall receive the stocks on the next trading day (T+1) in your demat account.
\n\n\n\nBut in case of counterparty short delivery, it might take up to 2 working days after the expiry to get these shares credited into your demat account through purchase from the auction market. In case of partial delivery and unavailability of shares, the remaining portion of the trade may also be settled in cash.
\n\n\nThere are two broad categories of options in the Indian markets and each follows different rules if you haven’t squared off your positions on expiry day. Let’s see what will happen in both types of options
\n\n\n\nStock Options:
\n\n\n\nIndex Options: Index options don’t involve physical delivery, only cash adjustments based on the contract value.
\n\n\n\nFor Bought Options:
\n\n\n\nShorted/Sold Options: STT charged only when initiating the short position. No STT at expiry.
\n\n\n\nIf you can’t find an option for a specific stock, it likely isn’t available for the specific trading. This may be due to various factors set by the Securities and Exchange Board of India (SEBI) to ensure market stability and protect investors.
\n\n\nBuying new put or call options for a stock is restricted in the last two trading days before expiration (Wednesday and Thursday) because these contracts are subject to physical settlement, which involves the actual delivery of the underlying stock. However, you can still close out existing positions on these options for the quantity you currently hold.
\n\n\n\nNote: Margin requirements can significantly increase if your options are due for physical settlement. This is because you may be required to own the underlying stock, which can be a large financial commitment. Additionally, stock options can be illiquid, making it difficult to quickly sell your position if necessary.
\n\n\nThe final price used for settling option contracts is calculated based on the weighted average of all trades in the underlying option during the last half hour of trading.
\n\n\n\nHowever, the last traded price (LTP) cannot be zero as you cannot place a trade at ₹0 on the exchange. If the option itself is worthless i.e out-of-the-money on the day of settlement, even if its LTP is ₹0.05 its settlement price comes out to be ₹0.
\n\n\nLow liquidity can lead to big price gaps between bids and asks in options contracts. In that case, market orders may get filled at any available price, potentially causing losses. To avoid these bad deals on illiquid options, market orders are restricted for the below:
\n\n\n\nAlthough market orders are allowed for Nifty and Bank Nifty options with high liquidity in the current and next week, and the current month’s expiries. Instead, you can use these alternatives if you are dealing in the stock options category or the indices where market orders are blocked:
\n\n\n\nThese are the limitations of futures and contracts:
\n\n\n\nLimited Flexibility: Futures contracts are standardized agreements, meaning that the terms are predetermined by the exchange. This lack of flexibility might not suit all traders or investors, especially those with specific needs or customized requirements like a smaller or a larger lot size, weekly or monthly expiry, etc.
\n\n\n\nCounterparty Risk: While exchanges act as intermediaries and guarantee the performance of futures contracts, there is still a level of counterparty risk. If the counterparty (either the buyer or seller) fails to meet their obligations, it can lead to financial losses.
\n\n\n\nLeverage and Risk: Futures contracts often involve significant leverage, which can amplify both gains and losses. This means that a small price movement in the underlying asset can result in substantial gains or losses for the trader.
\n\n\n\nExpiration and Rollover Costs: Futures contracts have expiration dates, after which they must be settled. This can lead to additional costs and complexities, especially for those who want to maintain exposure to the underlying asset beyond the contract’s expiration date. Traders may need to roll over their positions to a new contract, incurring transaction costs.
\n\n\n\nMarket Volatility: Futures markets can be highly volatile, and rapid price movements may occur, leading to potential losses. The use of leverage in futures trading can make investors more susceptible to market volatility.
\n\n\n\nInitial Margin and Maintenance Margin: Traders are required to maintain a certain amount of funds in their trading accounts as margin to cover potential losses. If the value of the position falls below a certain level (maintenance margin), additional funds may need to be deposited, or the position may be liquidated.
\n\n\n\nLimited Underlying Assets: Not all assets have futures contracts available. The range of underlying assets is limited to those that are actively traded, and certain markets may not be as liquid as others.
\n\n\n\nSpeculative Nature: Futures trading is often used for speculative purposes rather than hedging. Speculative trading can lead to increased market volatility and may not necessarily reflect the fundamentals of the underlying asset.
\n\n\n\nRegulatory and Geopolitical Risks: Changes in regulations or geopolitical events can impact futures markets. Unexpected policy changes or geopolitical tensions can lead to sudden and unpredictable price movements.
\n\n\nDue to SEBI regulations, you cannot roll over your open F&O positions if the contract is currently in a ban period. However, you can close your existing open positions for the specific stock under ban during the same time.
\n\n\nYou can find the following details in the futures contract:
\n\n\n\nExpiry date: This specifies the final trading day for the contract. After this date, the exchange facilitates settlement and delivery according to the contract terms. For example, the NIFTY JAN 24 contract expires on the last Thursday of January 2024.
\n\n\n\nContract size: This defines the minimum tradable quantity, also known as the lot size. Typically, it’s a set unit, but can vary depending on the underlying asset. For example, a contract of NIFTY has a lot size of 50, meaning one contract represents 50 units equivalent to the Nifty index.
\n\n\n\nInitial margin: This is the minimum deposit required to initiate a position. It fluctuates with the underlying asset’s volatility; volatile assets generally demand higher margins.
\n\n\n\nPrice quotation: This specifies the value at which the futures contract is currently being traded. Generally a futures contract trades at a price which is above the spot price of the underlying index. For example, the price quotation for NIFTY JAN 24 can be 21860 while the underlying NIFTY index may be trading at 21730. The further the expiration date of the futures contract the higher will be the difference between index value and price quotation of futures.
\n\n\n\nTick value: This represents the smallest possible profit or loss per contract, based on a price movement of one tick. For all the contracts traded on NSE, the minimum tick size is ₹0.05. It means for one NIFTY contract of lot size 50 the tick value will be 0.05*50=₹2.5
\n\n\n\nMark-to-market (MTM) process: This daily exchange procedure values all open positions according to current market conditions, ensuring timely recognition of profits and losses. It also manages risk for participants.
\n\n\n\nDelivery date (if applicable): For physically settled contracts, this specifies the deadline for the seller to deliver the underlying asset. This date usually falls after the expiry date. While index futures are all cash settled in India.
\n\n\n\nDaily settlement: This procedure involves the exchange crediting or debiting accounts with daily profits and losses calculated through the MTM process.
\n\n\nJust like stocks and futures contracts, option prices also move based on their trading activity. In the absence of active trading, the price of an option may remain stagnant even while the underlying asset and futures prices move. This often happens with out-of-the-money and deep-in-the-money options due to several factors like low demand or liquidity. Always check these three things before initiating any options trades:
\n\n\n\n| Forward | Future | |
| Definition | A contract between two parties to buy or sell an asset at a future date for a price that is decided on the date of the contract. | A contract between two parties to buy or sell an asset. It is made through the stock exchange rather than directly between the two parties. |
| Contract type | Tailor-made contract | Standardized contract |
| Traded on | Over the counter | Stock exchange |
| Settlement | On maturity date | Daily |
| Risk | High | Low |
The buy average for F&O positions is determined using the FIFO (First In, First Out) method if the same contract is traded multiple times. It operates on the principle that the first securities purchased are the first ones to be sold. To better understand FIFO, let’s look at an example with the following trades:
\n\n\n\nMr. Ajay engages in BANKNIFTY options where lot size is 15 and the trades are as follows:
\n\n\n\n| Date | Buy/Sell | Lot Size | Lots | Rate | Value |
| Jan 5th | Buy | 15 | 4 | ₹ 185 | ₹ 11,100 |
| Jan 12th | Buy | 15 | 6 | ₹ 210 | ₹ 18,900 |
| Total | 10 | Avg: 200 | ₹ 30000 |
On Jan 20th, he buys 2 lots at ₹ 235 per lot and sells 3 lots at ₹ 240 per lot:
\n\n\n\n| Date | Buy/Sell | Lot size | Lots | Rate | Value |
| Jan 20th | Buy | 15 | 2 | ₹ 235 | ₹ 7,050 |
| Jan 20th | Sell | 15 | 3 | ₹ 240 | ₹ 10,800 |
Applying FIFO, the 3 lots sold are considered from those purchased on Jan 5th.
\n\n\n\nP&L Booked profit = ₹ 2475 ((240-185) * 3 * 15)
\n\n\n\nNew average rate will be:
\n\n\n\n| Date | Buy/Sell | Lot Size | Lots | Rate | Value** |
| Jan 5th | Buy | 15 | 1 (4-3) | ₹ 185 | ₹ 2,775 |
| Jan 12th | Buy | 15 | 6 | ₹ 210 | ₹ 18,900 |
| Jan 20th | Buy | 15 | 2 | ₹ 235 | ₹ 7,050 |
| Total | 9 | Avg: ₹ 212.78 | ₹ 28,725 |
Note:
\n\n\n\nA futures contract is a standardized financial agreement to buy or sell a specific quantity of an underlying asset such as commodities, currencies, or financial instruments at a predetermined price on a specified future date. These contracts are traded on exchanges like NSE and BSE and are different from forward contracts because they have standardized terms and are highly regulated. Key features of futures contracts include:
\n\n\n\nFutures contracts serve various purposes, including risk management, speculation, and price discovery. They are widely used by hedgers to protect against price fluctuations, by speculators seeking profit from price movements, and by arbitrageurs to exploit price differentials between related assets. The existence of a standardized, regulated marketplace enhances liquidity and transparency in futures trading.
\n\n\nA forward contract is a financial agreement between two parties to buy or sell an asset, such as commodities, currencies, or other financial instruments, at a specified future date for a price agreed upon today. Unlike standardized futures contracts traded on exchanges, forward contracts are customized agreements negotiated directly between the buyer and the seller. Here are the key features of forward contracts:
\n\n\n\nForward contracts are widely used by businesses and investors to manage and hedge against the risks associated with price fluctuations in various financial markets, commodities, or currencies. While they offer flexibility, customization, and tailored risk management, they also expose participants to counterparty risk and lack the liquidity and transparency found in standardized exchange-traded futures contracts.
\n\n\nIn case of a hedged position, it is recommended to always close the leg with sell positions first and then close the leg with buy positions. This is because the sell positions of a hedged trade have higher margin requirements while buy positions of the same trade require only the premium amount.
\n\n\nIf you’re selling securities off-market, you can register the beneficiaries through your DP or using Easi/Easiest login.
\n\n\n\nIf you’re registering through DP,
\n\n\n\nPhonePe Wealth Broking Pvt Ltd, Office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103, India.
\n\n\n\nYou can also register beneficiaries without any physical form using your Easi/Easiest login. Tap here, enter login details, and the OTP received on the registered mobile number and email ID. You will then have to add your demat details, and then add the buyer account details under beneficiary details as well as in trusted account details.
\n\n\n\nNote: You will need to register a buyer only once.
\n\n\nDelivery margins are at their lowest four days before expiration and gradually increase each day until the expiration day. Here’s how it progresses:
\n\n\n\nThe calculated delivery margin includes VaR (Value at Risk), ELM (Extreme Loss Margin), and any ad hoc margin:
\n\n\n\nAs per guidelines provided by exchanges and SEBI, here’s the margin penalty levied in the case of a margin shortfall:
\n\n\n\n| Shortfall collection for each client | Penalty percentage of the shortfall |
| (< ₹1 lakh) And (< 10% of applicable margin) | 0.5% |
| (>= ₹1 lakh) Or (>= 10% of applicable margin) | 1.0% |
Note:
\n\n\n\nDerivatives are financial instruments that derive their value from an underlying asset. The underlying asset can be equity shares, indices, precious metals, commodities, currencies, bonds, etc. They provide traders and investors with:
\n\n\n\nRolling over a contract refers to moving a futures position from a contract that’s about to end to a contract with a later expiration date. This is done by closing the current-month contract and opening a similar position in a different month’s contract.
\n\n\n\nRollover is done to avoid the expiration of a futures contract and continue the market exposure into the next month. By shifting to a later contract, traders can maintain their market positions without having to close and reopen entirely new positions. This practice is common in futures trading to ensure continuity and avoid disruption in trading strategies. Options, however, do not have a rollover option as they have a fixed expiration date.
Generally, in the Indian F&O market segment, 3 monthly futures contracts are traded: the current month, the next month, and the following month. If you are carrying a Nifty futures contract for the current month and they are about to expire, then you can close the position in the current contract and switch it to the next month or the following month. Please note that the value of future contracts for next month and the following month will trade at a higher price due to the premium charged.
Note: As per SEBI guidelines, rollover of contracts in the ban period is not allowed. However, you can close your existing positions.
\n\n\nThese are risk management measures by stock exchanges to protect investors and the market from excessive losses.
\n\n\n\nValue at Risk (VaR):
\n\n\n\nVaR is a statistical measure that estimates the potential loss in value of a portfolio over a specific period under normal market conditions. It is calculated using historical data and statistical models. It helps investors and brokers assess potential risks and set appropriate margin requirements.
\n\n\n\nExtreme Loss Margin (ELM):
\n\n\n\nELM is an additional margin charged by exchanges in case of extreme market events exceeding the predictions of VaR (like crashes or black swan events).
\n\n\n\nA fixed percentage is charged on open positions in addition to VaR margin. This provides the exchange a buffer against unforeseen losses and protects the system from cascading failures in case of extreme market turmoil.
\n\n\n\nAdhoc Margins:
\n\n\n\nIt is additional margins imposed by exchanges at their discretion on specific securities or market participants during periods of high volatility or perceived risk.
\n\n\n\nIt varies depending on the situation but could be a percentage increase on existing margins or restrictions on new positions.
\n\n\n\nAdhoc margins mitigate risks arising from specific events or concerns (e.g., sudden spike in volatility of a particular stock).
\n\n\n\nImportant:
\n\n\n\nA margin penalty serves as a financial consequence for failing to maintain the required collateral (margin) in your trading account. Exchanges mandate sufficient margin levels for every trade to ensure adequate risk coverage in case a trade goes against you and you accrue a significant loss. This leads to a margin shortfall that occurs when the required margin exceeds the available funds in your account, triggering potential penalties.
\n\n\n\nThere are two types of margin penalties that exist as per SEBI regulations:
\n\n\n\nIn the event of a margin shortfall in your Share.Market trading account, you will receive immediate notification via both push notification and email. Your prompt action is required to address the shortfall and maintain sufficient funds. Here’s a breakdown of the expected response timeline:
\n\n\n\nRemember, failure to add funds within the stipulated time frame may lead to:
\n\n\n\nTherefore, we strongly encourage you to prioritize resolving any margin call notifications promptly to safeguard your investments and avoid unnecessary complications.
\n\n\nMTM, or Mark-to-Market, is a process in futures trading that values open positions based on their current market price at the end of each trading day. This means any unrealized gains or losses are reflected in your account balance daily, keeping track of your potential profit or loss on the contract.
\n\n\n\nHere’s an example of MTM in action with Nifty futures trading at 21500:
\n\n\n\nYou buy 1 lot of Nifty futures contract on Day 1 at 21500.
\n\n\n\nEach Nifty futures contract represents a lot size of 50.
\n\n\n\nThe contract value is calculated as contract price x lot size, making your initial contract value 21500 * 50 = 1,075,000.
\n\n\n\nLet’s say the position varies like this :
\n\n\n\n| Day | Opening Price | Daily Change | Closing Price | Settlement Price | MTM Profit/Loss |
| 1 | 21500 | +100 | 21600 | 21600 | +10,000 |
| 2 | 21600 (previous day’s settlement) | -50 | 21550 | 21550 | -5,000 |
| 3 | 21550 (previous day’s settlement) | +75 | 21625 | 21625 | +7,500 |
| ACTUAL PROFIT | +12500 |
Note:
\n\n\n\nThe term ‘open interest limit’ denotes the highest number of open contracts or positions that market participants are allowed to maintain for a specific financial instrument.
\n\n\n\nA restriction applies on a per-client basis, limiting them to 5% of the total number of all derivative contracts for the same underlying asset, while trading members (brokers) are subject to a 15% limit on open interest.
\n\n\n\nServing as a regulatory safeguard, it prevents the accumulation of excessive positions by a single person or a trading member, thereby preserving market stability and mitigating potential risks.
\n\n\nThis might happen if you initiate the short positions (selling options or futures) before initiating the long position (buying options or futures).
\n\n\n\nTo avoid this while initiating a hedged F&O position, prioritize buying the long leg first to minimize margin requirements. This leg typically requires less upfront premium compared to short positions. Following the long leg with the short leg reduces the risk of encountering margin shortfall or paying the full margin for the sell trade.
\n\n\nThe margin for pledged shares will be reflected in your trading account one day (T+1) after the shares have been pledged.
\n\n\nAfter Market Orders (AMO) cannot be placed during the brief intermission period between the first and second trading sessions. To ensure your desired trade execution during the second session, we recommend submitting your order during the pre-open session beginning at 11:15 AM on January 20th.
Note:
Intraday trades will be squared off 15 minutes prior to the end of each of the sessions on Share.Market.
\n\n\n\n| Session Name | Auto Squareoff Time |
|---|---|
| Session I | 9:45 AM |
| Session II | 12:15 PM |
No, only selected stock scrips will be available for intraday trading on this special trading session. However, you are free to buy or sell all the scrips for delivery. If your intraday order for a particular scrip fails to execute, then it is possible that the particular stock is not available for intraday trading. In case of failure you may see a notification regarding this on your screen.
\n\n\nFor shares purchased on 19th January: You will not be able to sell shares during the special trading session. You can sell these shares on 22nd January which is the next working day. The sale proceeds will be settled as per usual rules of settlement.
For shares purchased on 20th January: You can sell these shares on 22nd January which is the next working day. The sale proceeds will be settled as per usual rules of settlement.
The 5% upper and lower circuit limits for all securities, including equity and derivatives, are implemented to ensure stability and manage potential volatility during the live trading session, providing a controlled environment for assessment.
\n\n\nThe live trading session contributes to business continuity by facilitating an intra-day switch-over to Disaster Recovery sites using the Software as a Service (SaaS) model. This helps MIIs, such as stock exchanges, clearing corporations, and depositories, assess their preparedness for unforeseen events.
\n\n\nAny credits in the F&O segment or intraday profits from 19th January will not be available for trading during the live trading session on 20th January, as it is a settlement holiday.
\n\n\nYes, here are the noteworthy aspects that you need to keep in mind during these live sessions-
\n\n\n\nThe equity and equity derivatives segments form the backbone of financial markets. The special live trading session is tailored for these segments to comprehensively assess disaster recovery capabilities in these critical areas.
\n\n\nThe normal session will begin with the pre-open session on NSE and BSE at 9:00 AM- 9:15 AM, followed by normal trading at 9:15 AM which shall end at 10:00 AM
\n\n\n\n| Session I | Timings |
| Pre-open session | 09:00 AM – 09:08 AM |
| Normal market session | 09:15 AM – 10:00 AM |
After this, the disaster recovery site’s pre-opening session is scheduled for 11:15 AM-11:30 AM, with normal trading from 11:30 AM to 12:30 PM. You can also place limit orders at market price and market orders during the post market session which begins at 12:40 PM.
\n\n\n\n| Session II | Timings |
| Pre-open session | 11:15 AM-11:23 AM |
| Normal market session | 11:30 AM – 12:30 PM |
| Post market session | 12:40 AM – 12:50 PM |
Tap here to learn more about the special trading session on 20th January, 2024.
\n\n\nIf you’ve placed orders after market hours, you can modify or cancel them only between 4:00 pm and 8:55 am on the next trading day.
\n\n\nCurrently, you can only place investment or withdrawal orders after the market closes for a given trading day, however, rebalance orders can only be placed within the market hours.
\n\n\nWe usually take your approval on the total value of each stock plus a 2% buffer. This makes sure that the allocation percentages don’t get affected by the change in market prices on the next trading day. However, the system also takes into effect that your WealthBasket investment should not exceed your approved amount.
\n\n\n\nTo learn more about this buffer, tap here.
\n\n\nYes, you can. However, if you place any buy order after the market closes, it will be executed only on the next trading day. The quantity for each stock in your WealthBasket will be determined by the percentage allocation recommended by the curator, the value you’ve approved, and the market prices on the next trading day.
\n\n\n\nNote:
\n\n\n\nIf you’ve cancelled the IPO application, you will receive the refund only after the allotment process is complete on the refund initiation date. You can see the date by when you will get the money, under Order Timeline.
\n\n\nPeak margin is the maximum amount of funds or number of shares that you can trade in intraday without adding additional money to your trading account..
\n\n\nYour limit order was rejected with this error because the limit price you set did not reach the Last Traded Price (LTP) of that scrip.
\n\n\nYou may be unable to set the limit price for a scrip if the price you’ve entered is outside the upper and lower circuit limit range. You will need to set a limit price within the circuit limit range to place your order.
\n\n\nIf you’ve transferred your shares from another broker to Share.Market, you may not be able to see that scrip under your holdings. However, you will still be able to sell these shares by searching for the scrip from your home screen, selecting it, and then placing your order.
\n\n\nIf you’ve applied for the IPO through net banking and have been allotted the shares, you may not be able to see that scrip under your holdings. However, you will still be able to sell these shares by searching for the scrip from your home screen, selecting it, and then placing your order.
\n\n\nEPI (Early Pay-in) is done when settlement obligations are fulfilled with the clearing corporation before the due date. It happens when securities are marked or blocked with clearing corporations before time.
\n\n\n\nIf you’ve sold your shares today, you can only use only upto 80% of the entire amount on that day itself for trading. You will get this amount immediately. However, you will get the rest of the amount in your trading account only on the next trading day.
\n\n\n\nImportant: In the case of BTST (Buy Today Sell Tomorrow) trades, you will receive the entire amount only on the next trading day.
Note: Stocks sold from delivery today will be available for buying on the same day.
You may see no money in your available funds because of auto-settlement. As per SEBI regulations, all brokers must transfer all unused funds in your trading account back to your bank account on the first Friday of either the month or quarter. This may also happen if your Share.Market account has been inactive for a long time.
\n\n\n\nYou may see a lesser amount in your available funds because regulatory charges have been deducted from your trading account at the end of the day. You can go check your cash ledger to see the detailed breakdown for this.
\n\n\n\n Need help with a specific transaction?\n
\n \nUsually, this happens when the order you placed could not be matched or be executed by the exchange. These pending orders are automatically cancelled when the market closes.
In such cases, you will need to place this order again. You can also do this in the next trading session or by placing an after market order (AMO).
\n Need help with an order?\n
\n \nYou may not see the profit & loss or average purchase price of some shares or your IPO shares because:
\n\n\n\nYou can sell shares even if you can’t see these specific details. However, you can reach out to us or raise a ticket if you’d like to get these details updated.
\n\n\nHere’s what you can do with charts on our platform:
\n\n\n\nA periodic call auction is a measure by SEBI to reduce the volatility in illiquid stocks. Stocks traded in this category meet specific criteria outlined by SEBI like having less than 50 average daily number of trades, less than 10,000 daily trading volume, etc.
\n\n\n\nHere are the timelines for when you can trade in stocks under periodic call auctions:
\n\n\n\n| Session No | Start Time- Order Placement | Order matching | Buffer period |
| 1 | 09:30 AM – 10:15 AM | 10:15 AM – 10:23 AM | 10:24 AM to 10:30 AM |
| 2 | 10:30 AM – 11:15 AM | 11:15 AM – 11:23 AM | 11:24 AM to 11:30 AM |
| 3 | 11:30 AM – 12:15 PM | 12:15 PM – 12:23 PM | 12:24 PM to 12:30 PM |
| 4 | 12:30 PM – 01:15 PM | 01:15 PM – 1:23 PM | 01:24 PM to 01:30 PM |
| 5 | 01:30 PM – 02:15 PM | 02:15 PM – 2:23 PM | 02:24 PM to 02:30 PM |
| 6 | 02:30 PM – 03:15 PM | 03:15 PM – 3:23 PM | 03:24 PM to 03:30 PM |
Note:
\n\n\n\nNo, you will not have to pay an exit fee when you exit a WealthBasket.
Note: You may incur transactional charges for entry, exit, and rebalancing of your WealthBasket.
WealthBasket curators rebalance WealthBasket constituents from time to time based on their investment strategies. They make recommendations to sell and buy some or all holdings to better the WealthBasket performance. Once you accept the recommendations, the sell orders will be carried out first. The sale proceeds from that will then be used to buy the recommended shares.
Note: You will receive notifications for WealthBasket recommendations through emails and push notifications.
You can use UPI handles of only those apps or banks that support IPO applications made via UPI. You can visit https://www.npci.org.in/what-we-do/ipo/live-partners to see the list of apps and banks that support this.
\n\n\nThe DigiLocker access permission may have been denied if you’ve not selected or ticked the checkboxes for the Aadhaar Card and PAN Verification Record before tapping Allow. Please make sure you’ve ticked both the checkboxes before proceeding.
\n\n\nSometimes exchanges may take time to share an update on the application status with us. However, if you have approved the mandate at your end, you will be eligible for the IPO allotment process.
\n\n\nIf you applied for an IPO before it was open, you will receive the mandate on the UPI app you’ve selected only once the bidding window starts.
\n\n\n\nIf you still don’t receive the mandate, you can cancel the application and submit a fresh one.
\n\n\nYour IPO application may have been rejected by the exchange due to some reasons. Please reach out to the RTA to know more about this.
\n\n\nYour AMO may get rejected due to margin shortfall because there aren’t enough funds in your trading account. This may happen if:
\n\n\n\nTo make sure your AMO is not rejected, always have sufficient funds in your trading account before the market opens.
\n\n\n\n Need help with an order?\n
\n \nCurrently, we allow you to submit IPO applications of only up to ₹2 lakhs in the employee or shareholder category. However, if the company allows applications of more than ₹2 lakhs, you can apply by logging into your net banking account and completing the application through ASBA.
\n\n\nIn 2023, Muhurat trading will take place on 12th November (Sunday). The trading session will be from 6:15 pm to 7:15 pm
\n\n\n\nLearn more about the timings for different sessions in Muhurat trading.
\n\n\nHere are some aspects that you must keep in mind:
\n\n\n\nNo, if you’ve placed a fund withdrawal request on Friday, you will receive the money within the next two business days i.e. by Wednesday, 15th November 2023.
\n\n\nNo, the stocks bought on Friday will be settled on the next trading day i.e. Monday, 13th November, 2023.
\n\n\nNo, you don’t have to pay any extra brokerage for Muhurat trading. However, you will be charged the usual brokerage and regulatory charges. For more details on this, tap here.
\n\n\nHere are the timings for different sessions in Muhurat trading:
\n\n\n\nBoth the NSE and the BSE participate in Muhurat trading.
\n\n\nWhile regular trading sessions last for more than 6 hours, Muhurat trading session lasts only for an hour, primarily in the evening.
\n\n\nMuhurat trading is a special one-hour trading session on the day of Diwali. It marks the beginning of the new financial year for the Indian stock markets and is considered an auspicious time for trading and to launch new ventures.
\n\n\n\nIts history can be traced back to ancient Indian trading communities, where traders would perform puja (worship) of their account books and ledgers on this auspicious day. This tradition eventually evolved into the modern practice of Muhurat trading in stock markets. Muhurat trading happens on the new year of Vikram Samvat, a calendar for the Hindus in India.
\n\n\nYour IPO application status may show Cancelled if:
\n\n\n\nIf you do not get the IPO allotment, your bank will release the blocked amount. You can see the date by when the money will be unblocked, under Order Timeline. If there are any issues with this, please reach out to the bank or the IPO issue registrar.
\n\n\nIf you’ve received the IPO allotment, you will find these shares in your holdings once the company is listed. You can see the listing date for the company under Order Timeline.
If you’ve received a partial allotment in the IPO, your bank will release the blocked amount for the unallotted shares. You can check the Order Timeline section to see the date by which your bank will unblock your money. If there are any issues with this, please reach out to the bank or the IPO issue registrar.
In this case, your bank should release the blocked amount automatically within the mandate end date. If your bank hasn’t done so, please reach out to them or escalate this issue with NPCI at ipo.upi@npci.org.in.
\n\n\nIf you face any issues regarding the mandate, please reach out to the support team of the relevant UPI service provider. You can also try accepting the mandate after some time.
\n\n\nIf you have applied as an HNI investor, you won’t be able to cancel the application.
\n\n\n\nEven if you are a retail investor, you won’t be able to cancel the application if the cut-off time for the bid submission is crossed.
\n\n\nIf you’ve submitted the application during the pre-apply window, you can expect the mandate usually within the first day of the bidding window. If you have applied during the bidding window it may take up to 24 hours from the time you have submitted the application.
However, if you have applied on the last day and have not received the mandate in the next 2-3 hours, please cancel the application and submit a fresh application within the timeline.
Note:
\n\n\n\nIn the IPO section on your app or web, select the relevant IPO you’ve applied for. You can then tap the Bid Details dropdown and tap Modify or Cancel to modify or cancel your application
\n\n\n\nImportant:
\n\n\n\nTo check the status of your IPO application, tap Portfolio>Orders>IPO and select the relevant IPO application. You can see the status of your application under Order Timeline. You can also visit the IPO registrar website to check the status.
\n\n\n\nTo check the status of your mandate, please check the UPI app through which you approved the mandate. If you have approved the mandate, you will be eligible for the allotment process.
Note: The dates mentioned on the order timeline are tentative and subject to change.
If you have applied as an HNI investor, you won’t be able to modify the bid by reducing the amount or price. However, you can modify the bid to increase the lot size or price.
\n\n\n\nEven if you are a retail investor and have applied under HNI, you won’t be able to modify the application if you cross the cut-off time for the bid submission.
\n\n\nUsually, you can accept the mandate till 5 pm on the closing date of IPO. These timings can be subject to change from IPO to IPO. It is always better to accept the mandate immediately once you receive it.
\n\n\nYes. The regulator’s share allotment rules state that the minimum bid lot is based on the minimum application amount. This offer price is generally between ₹14,000 – ₹15,000 per mainboard IPO bid value, as defined by the company.
\n\n\nIf you want to invest more than 5 lakhs, log into your net banking account and complete the application through ASBA.
Note: Only select banks allow investing more than 5 lakhs in an IPO
Yes, you can place an application for more than 1 lakh using UPI. You can create UPI mandate requests for up to 5 lakhs for IPO application.
\n\n\nYes, you can apply through any bank account where you are the primary account holder.
\n\n\nYou can only use UPI as a payment mode to invest in IPOs on our platform. If your investment is above 5 lakhs, you will have to make the transaction through the net banking options available in your bank’s net banking portal.
\n\n\nYes, you can apply up to 3 bids in a single IPO application.
\n\n\n\nHowever, you can’t have multiple IPO applications within a category (retail, HNI, etc) with the same PAN.
\n\n\nTo apply for an IPO,
\n\n\n\nIt may take some time for you to receive your mandate once you’ve completed the process.
\n\n\nHere are the risks of investing in an IPO:
\n\n\n\nNo, there are no specific tax benefits solely for IPO investments. Investors are subjected to capital gains or loss tax when they sell their IPO shares at a profit or loss, depending on the holding period and applicable tax laws.
\n\n\nUsually, the company with an IPO decides if there is a separate category for the company employees. Some allow their employees to participate through an employee quota with a fixed portion of shares reserved for them. There may also be employee discounts within this quota. Even if there is no separate category for employees, they can still apply under the retail or HNI category.
\n\n\nHere are the market sessions on an IPO listing day:
\n\n\n\nNote: Only limit orders can be placed in an IPO pre-open market session.
\n\n\nIPO bidding is usually open for 3 to 5 days. It can go to a maximum of 10 days. The allotment of shares is usually confirmed within the next 2 working days. The issue will be listed within the next 3 working days after the closure of the IPO.
\n\n\nLock-in periods are restrictions imposed on certain shareholders like company insiders, promoters, and early investors, preventing them from selling their shares for a specific period after the IPO. This prevents a massive sell-off that could harm the stock’s price in the early days of trading. Generally, pre-IPO investors have a lock-in period of 6 months.
\n\n\n\nHere are the lock-in periods for IPO shares:
\n\n\n\n| Retail | HNI | QIB | Anchor | |
| Lock-in Period | NA | NA | NA | 30-days: 50%90-days: 50% |
The cut-off price is the offer price at which the shares get issued to the investors, which could be any price within the price band. When you apply for an IPO at the cut-off price, you won’t have the option to enter the price separately and your bid will be considered at the cut-off price finally discovered.
Note: Only retail investors can apply for IPOs at a cut-off price. HNI investors cannot apply for IPOs at a cut-off price.
Yes, IPO prices can change on the first day of trading.
\n\n\n\nThe price can go higher or lower depending on investor demand, market conditions, and the company’s performance and prospects.
\n\n\nThe IPO Red Herring Prospectus (RHP) is a legal document that provides detailed information about the company, its IPO offering, financials, business model, and risk factors. Investors should always read the prospectus before making investment decisions.
\n\n\nThe offer price for an IPO is determined through book building or fixed price method.
\n\n\n\nIn book building, the offer price is discovered through the bidding mechanism. Usually, a price range is announced, and interested investors apply or bid within this range.
\n\n\n\nIn the fixed price method, the offer price is fixed by the issuer and investors apply at the fixed offer price.
\n\n\nHere are the 4 broad categories of investors in an IPO:
\n\n\n\nRetail individual investor (RII): These are Indian resident individuals, NRIs and HUFs who participate in an IPO with less than ₹2 lakhs. If oversubscribed, the allotment is on a lottery basis and applicants will receive a maximum of one lot.
High Net-worth Individual (HNI): These are Indian resident individuals, NRIs, HUFs, companies, corporations, academic institutions, societies and trusts. Investors who place bids for shares worth ₹2 lakhs to 10 lakhs are Small HNIs. Those who place bids for shares worth more than ₹10 lakhs are Big HNIs. If the IPO is oversubscribed for small HNIs, the allocation will be on a lottery basis. For big HNIs, each investor will get allotment proportionately, subject to availability.
Qualified Institutional Buyer (QIB): QIB is registered with SEBI to invest in IPOs. Most QIBs invest in large amounts and represent investors who invest through mutual funds, ULIP schemes of insurance companies and pension schemes.
Anchor Investors: Anchor investors are financial institutions that are allocated shares at a fixed price before the IPO is opened to the public. These also include public financial institutions, banks, mutual funds, and foreign portfolio investors who invest money on behalf of their clients.
| Retail | HNI | |
| Limits | Up to ₹2 lakh | Above ₹2 lakh |
| Lock-in Period | NA | NA |
| Cancellation of Bid | Yes, while the issue is open | No. |
| Modification of Bid | Yes, while the issue is open | Yes, but can only upside the bid |
| Apply at the Cut-off price | Yes | No |
Both individual and institutional investors can participate in an IPO by purchasing shares at the offer price during the IPO subscription period.
\n\n\n\nLearn more about the different types of investors.
\n\n\nThere are two types of IPOs:
\n\n\n\n| SME IPO | Mainboard IPO | |
| Average Application Size | Minimum of ₹1 lakh | ₹14,000 – ₹15,000 |
| Listing on Stock Exchanges | Can be listed only on one exchange. | Can be listed on both exchanges. |
An Initial Public Offering (IPO) is the first sale of company shares to the public on a stock exchange. It allows a private company to become publicly traded and raise capital from general public investors for funding expansion, paying off debts, acquiring assets, supporting research and development etc. It also allows early investors and founders to sell their shares and realise their investments.
\n\n\n\nWhen going public, a company hires an investment bank or underwriter to manage the offering. The bank or underwriter helps set the IPO price, conduct due diligence, and market the offering to potential investors. After the IPO is successful, company shares are listed and begin trading on the stock exchange.
\n\n\nYou will be asked to add more funds before rebalancing if the available funds in your trading account and the previously unutilized WealthBasket funds are not sufficient enough to buy the latest recommended shares.
\n\n\n\nWe recommend adding a small additional buffer of 1% of the total buying value (with a minimum of ₹10) to account for any potential market price fluctuations. This protects your investments from unexpected price changes. However, this is not mandatory. You can still proceed with the investment without opting to add the buffer amount.
\n\n\nYour buy orders may be pending if the shares have hit an upper circuit. Your sell orders may be pending if the shares have hit a lower circuit.
\n\n\nIf you sell your WealthBasket stocks directly from the Holdings section instead of the WealthBasket section, we’ll adjust the discrepancies between your WealthBasket holdings and overall holdings.
\n\n\n\nHowever, we recommend you don’t sell your WealthBasket stocks directly from your holdings as this may impact your WealthBasket’s performance.
\n\n\nModifying or rejecting the curator’s recommendations may impact your WealthBasket’s performance. We suggest you not edit quantities or values for recommended actions. However, if you still want to modify them, you can tap Edit beside the WealthBasket composition.
Note: Any modification you make cannot be less than the WealthBasket’s minimum investment amount.
Once the trades are executed, the regulatory charges get added at the end of the day. This is why the average purchase price is different from the price at which the trades were executed.
\n\n\nTo update the IFSC of your linked bank account, you should share an account modification form and a cancelled cheque copy with us. Your name should be clearly printed on the cheque.
\n\n\n\nLearn more about how you can share this form with us.
\n\n\nThis may happen if:
\n\n\n\nYou may be unable to sell the entire quantity you see in your holdings because there is some discrepancy in the number of shares in your holdings. This may happen if:
\n\n\n\nIn these cases, you may be able to see the updated quantity only at a later date. If you would like to update your holdings please reach out to us by raising a ticket.
\n\n\nCharts are visual representations of stock prices and the quantity of shares traded in the market. They help you identify patterns and trends in the stock market so that you can make informed trading decisions and manage risk. Charts also help you do technical analysis so that you can make investments according to your strategies.
\n\n\n\n\nIf your PAN is already linked with a Share.Market demat account you won’t be able to open a new account with that same PAN.
\n\n\n\nIn this case, please use a different mobile number. This mobile number must be linked to a different PAN and Aadhaar.
Note: The name on your PAN card, Aadhaar, and bank account details should be the same.
Currently, we have only enabled selected banks for net banking. We will add more banks in future updates.
\n\n\n\nIf you can’t find your bank in our net banking options, please use UPI.
\n\n\nCurrently, you can trade in delivery, intraday, futures and options.
\n\n\nNo, you will not be charged an account opening fee to open a demat and trading account with us.
\n\n\nThere are two types of stock markets:
\n\n\n\nPrimary market: The primary market is where newly issued securities, like stocks and bonds, are sold for the first time by companies or governments directly to investors. A company enters the primary market through an IPO by publicly registering itself on the stock exchange for the first time. Primary markets allow companies to raise long-term funds with the issue of new shares.
\n\n\n\nSecondary market: Once a company’s new shares have been sold in the primary market and get listed, those shares are traded on the secondary stock market. No new shares are issued and investors buy and sell the existing shares at market prices.
\n\n\nYou can try to draw your signature on the best effort basis. You can use the maximum area possible in web and landscape mode in mobile .
\n\n\nYou will need to allow access to your location before taking the selfie as a part of SEBI’s requirement. This is because we can’t onboard a person who is residing outside India.
\n\n\nYou will have to submit a canceled cheque or last three months’ bank statements to upload bank proof manually. Please ensure your name is clearly visible on the document.
\n\n\nIn this case, you will not be able to open your account due to the name mismatch, as the name on your PAN card should match the name in your Aadhaar and bank account details.
\n\n\n\nTo change the name in your PAN card,
\n\n\nTap here and select Apply Online>Application Type>Edit PAN details.
\n\n\n\nUnder Category, select Individual, fill in details, and proceed.
\n\nTo change your name in Aadhaar,
\n\n\nTap here, enter your Aadhaar, and OTP sent to your Aadhaar registered mobile number.
Tap Edit Aadhaar online, edit details, submit the necessary documents, and pay.
\n\nTo change the name in your bank details please contact your bank and follow the steps shared by them.
\n\n\nWhile your PAN and Aadhaar are sufficient proof of identity and address, the current requirement for KYC verification and account opening requests more information about the account holder. Hence you must share all the additional information we’ve requested.
\n\n\nIf you don’t have a DigiLocker account, you will have to create one while doing your KYC verification. All you need to do is enter your Aadhaar number, enter the OTP sent to your registered mobile number, and set your passcode.
\n\n\nNo, currently we only allow individual PAN card holders to open an account with us.
\n\n\nIf you would like to use a different PAN, please log in using a different mobile number. Make sure that the mobile number is linked to an Aadhaar and a unique PAN.
\n\n\n\nNote: The name on your PAN card, Aadhaar, and bank account details should be the same.
\n\n\n\nLearn more about what you should do if you want to change the name on your PAN card.
\n\n\nNo, you cannot open a demat account with Share.Market without opening a trading account.
\n\n\n\nThis is because the demat account acts like a repository. While demat account helps you with the delivery of shares, trading in equity delivery, applying for an IPO, getting allotment of shares etc., a trading account helps with managing funds for these activities.
\n\n\nIf you don’t have access to your Share.Market linked mobile number please use another mobile number to sign-up.
\n\n\nIf you have opened a demat account with us before 31st July 2024, you won’t be charged brokerage for any trades (including F&O) till 31st December 2024.
For more details on brokerage and regulatory charges, tap here.
Orders placed within the past 15 days will be visible in the Orders section. Orders placed before that will be available in your tradebook.
\n\n\n\n Want to see past orders?\n
\n \nIf your PhonePe account is deactivated or inactive, you won’t be able to log in to your Share.Market account. Please activate your PhonePe account to log in to your Share.Market account.
\n\n\nWe fetched your PAN automatically because you’ve already shared your PAN details with us to invest in mutual funds through the PhonePe app.
\n\n\nNo, you cannot cancel the buy orders that have been scheduled during rebalancing.
\n\n\nYour buy value may have changed because you have chosen to change the quantities while buying. In such cases, the buy order is placed based on the quantity you’ve approved and not the value.
\n\n\nSince the buy orders are placed on the next day, the values are updated based on the current market prices at the time of order placement. Given that the total buy value needs to be equal to or marginally lesser than the sale proceeds, the movement in prices may change the quantities slightly, thereby affecting the allocation.
\n\n\nWhile rebalancing, the sell orders are carried out first. The sale proceeds are then used to carry out the buy orders.
\n\n\n\nAs the buy orders are placed on the next trading day, there is a possibility that the prices of those stocks recommended for buying may change. Hence, your approval is taken on value instead of quantity. Once approved, the orders will be placed based on the recommended value. The quantities are updated based on the current market prices of recommended stocks at the time of order placement.
\n\n\nYes, the funds in your trading account may be used to rebalance your WealthBasket if the money you received from selling the recommended shares does not cover the cost of buying the recommended shares.
Note: Any unallocated funds in the WealthBasket may also be used towards buy orders. However, if we still run out of funds to carry out the buy orders, the funds in your trading account will be used.
When you sell stocks as a part of your rebalancing, you will receive the sale proceeds only on the next trading day. On the next trading day, the buy orders are executed using the sale proceeds received. Then, the next day. i.e. the second day after you execute the rebalance, shares bought are settled in your demat account. Here’s a breakdown of this:
\n\n\n\nDay 0 – You execute the rebalance and recommended stocks are sold
Day 1 – You receive money from sold stocks. Recommended stocks are bought
Day 2 – The bought stocks are credited to your demat account
| 52-Week High | The 52-week high of a security or an index refers to the highest value or price achieved by it in the past year (or preceding 52 weeks). |
| 52-Week Low | The 52-week low of a security or an index refers to the lowest value or price achieved by it in the past year (or preceding 52 weeks). |
| Accumulation | It is when many traders and investors are buying a security in large amounts, showing optimism. It signals potential for price increase. |
| Acid Test Ratio | Acid test ratio is used to calculate short-term liquidity availability in a company. The formula to calculate the same is as follows: Acid test ratio= (Cash & Cash equivalents + Marketable securities + Account Receivables) / Total Current Liabilities |
| Advances | The number of securities from a sector or index that have increased in price during a specific period of time. |
| After Market Orders (AMO) | After Market Order (AMO) helps you place an order beyond regular trading hours. They are executed on the next trading day. |
| Algorithmic Trading | Algorithmic trading is when computers follow specific instructions (algorithms) to automatically trade in financial markets, using data analysis and patterns. |
| Alpha | Alpha is the excess return generated on any investment in comparison to a benchmark index. |
| American Depositary Receipt (ADR) | It is a mechanism through which US depository banks can list stocks of companies not registered in US, on US exchanges like NYSE and NASDAQ. These stocks are denominated in dollars and their dividends are also reflected in the same. |
| Amortization | Amortization is an accounting method used by companies to spread out the expenses incurred for acquiring a long term asset over a period of time (typically as long as the asset is in use), for taxation purposes. For eg: If a company acquires machinery for say ₹1 crore which will be used for next 10 years today, then instead of showing the expense incurred towards this in one financial year in the accounting books, they will show ₹10 lakh as an expense over next 10 years |
| Analyst Recommendations | Analyst recommendations are professional opinions on whether to buy, sell, or hold the stock. |
| Annual General Meeting (AGM) | Annual General Meeting is a corporate event where the management gives a brief about the functioning of the company or organization to general shareholders. Voting on important matters pertaining to the company may also take place in an AGM, like appointment of directors, declaration of dividend, appointment of auditors, etc. |
| Annual Report | It is a report which gives a comprehensive review of a company or organisation’s acitivities and financial data in the preceding financial year. |
| Annuity Investment | An annuity investment is an option that can provide a guaranteed income for an individual or their spouse throughout their retirement. They are purchased for a set period and payout a specific amount in retirement based on the investment strategy and amount invested. |
| Arbitrage | Arbitrage is the simultaneous purchase and sale of the same or similar asset in different markets in order to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms. For example : A stock which is listed on both BSE is trading at ₹100 while the same stock is trading at ₹103 on NSE. In this case an arbitrage opportunity of ₹3 is available as you can buy the stock from BSE at ₹100 and sell it for ₹103 thus making ₹3 in the transaction. |
| Ascending Triangle | An ascending triangle is a bullish continuation pattern. It forms when there’s an uptrend in prices, and the market experiences a consolidation phase characterized by higher lows forming a rising trendline, and relatively flat highs forming a resistance level. |
| Ask Price | It is the price quoted by the sellers of a security at which they are willing to sell a specified quantity of that security. |
| Asset Allocation | Asset allocation is the act of dedicating portions of your investments to different asset classes in a manner consistent with an investment strategy. |
| Asset Management Company (AMC) | An asset management company (AMC) is a firm that professionally manages and invests funds collected from its clients in stocks, bonds, real estate, commodities, etc. |
| Asset-backed securities | An asset-backed security (ABS) is a financial investment that is backed by an underlying pool of assets as collateral. It works like a bond, paying fixed income until it matures. |
| ATR | Average True Range (ATR) is a technical indicator to measure the volatility or range of price movements of a stocks, commodities, or currencies, over a specified period. It is a moving average of the true range (TR) over a certain number of periods. |
| Authorised Capital | The authorised capital of a company is the maximum amount of share capital for which shares can be issued by a company. It is mentioned in the Memorandum of Association of the Company. The company can increase the capital at any time with shareholders’ approval and by paying an additional fee to the Registrar of Companies. For example, if a company has an authorized capital of ₹10 lakhs, it can issue shares up to that value to investors. However, it can issue shares for an amount less than ₹10 lakhs if needed. |
| Auto-settlement | As per SEBI regulations, all brokers must transfer idle funds from the user’s trading account back to their linked bank account on the first Friday of either the month or quarter as a part of the account settlement process. |
| Bad debt | Bad debt refers to debt that someone borrowed but is unlikely to pay back. When debts are considered bad, they are treated as losses and written off against a reserve. |
| Balance Sheet | A financial statement that shows a company’s assets, liabilities, and shareholders’ equity, providing insights into its financial position. |
| Balanced Fund | A balanced fund is a mutual fund that includes both equity and debt in the portfolio schemes. Generally, 40-60% holdings are in the form of equity and the rest in the form of debt. |
| Base Interest Rate (Benchmark Interest Rate) | It is a key rate set by a country’s central bank or monetary authority serving as a reference point for determining the interest rates in the economy. It is the minimum interest rate investors will demand investing in non-Treasury security (corporate bonds, municipal bonds, etc). |
| Basis Point | A basis point is a standard measure for interest rates and other percentages in finance. One basis point equals 1/100th of 1%, or 0.01%. Basis points are typically expressed with the abbreviations bp, bps, or bips. |
| Bear Market | A bear market is a trend of falling stock prices or indices for an extended period. Usually, if stock prices or indices have fallen at least 20% from the previous high, it is considered a bear market. |
| Bearish | Being bearish means having a negative view on the price or future performance of an asset or market, expecting it to go down. |
| Beta | Beta is a concept that measures the expected move in a stock relative to movements in the overall market. A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility. |
| Bid (Buying) Rate | It is the price quoted by the buyers of a security at which they are willing to buy a specified quantity of that security. |
| Bid (Buying) Rate | The bid–ask spread is the difference between the prices quoted for an immediate sale (ask) and an immediate purchase (bid) for any security in live market. When the bid price matches with ask price then a order goes through for that specific quantity. |
| Billing Cycle | The billing cycle is the period between the last billing date and the current billing date for any sale of goods or provision of services. The length of billing cycles varies depending on the manufacturer or service provider. |
| Black-Scholes Model | It is a differential equation widely used to value option contracts. The Black-Scholes model requires five input variables: the strike price of an option, the current stock price, the time to expiration, the risk-free rate, and the volatility. |
| Block Trade | A block trade is a privately negotiated securities transaction that involves a substantial number of shares or a high value. These trades are usually executed outside of the regular market and involve institutional investors or big players in the financial industry. |
| Blue-Chip Stock | Blue-chip stocks are stocks of companies with large market capitalization, sound financials and good reputation. |
| Bollinger Bands | A Bollinger Band is a technical analysis tool used to measure the volatility of a stock’s price. It is plotted as two standard deviations, above and below the simple moving average (SMA) of a security’s price |
| Bond ETFs | Bond ETFs are exchange-traded funds (ETFs) that invest in bonds. In India, you can find bond ETFs that invest in government securities and private bonds. Bond ETFs are passively managed and track bond indices. |
| Bond Rating | Bond Rating determines the creditworthiness of a bond. Rating agencies like CARE, ICRA, CRISIL, and Fitch assess the bond issuer’s creditworthiness and give them a rating. A higher rating indicates a lower risk of default, while a lower rating means a higher risk of default. |
| Bonds | Bonds are instruments through which governments and corporations borrow money. Bondholders are creditors or lenders and the issuer of the bond is the debtor or borrower. Bondholders can receive fixed interest rates, or the bonds may be issued at a discount and paid in full at maturity. |
| Bonus Issue | Bonus issues are when companies give existing shareholders free additional shares based on their past profits. This increases the number of outstanding shares and may attract more retail investors. However, it doesn’t directly increase shareholder wealth as the per-share price may drop due to the increased number of shares. |
| Book Building | Book building is a process used to set the price of an IPO before it’s offered to the public. The underwriter gathers and records investor demand for shares to determine the issue price. |
| Book Value | The book value of a company is calculated by subtracting its external liabilities from its assets. It literally means the net worth of the company as reflected on its balance sheet. |
| Book Value/Share | The book value of a company is calculated by subtracting its external liabilities from its assets. It literally means the net worth of the company as reflected on its balance sheet. Book Value/Share is ratio of book value to the number of outstanding shares |
| Bottom Line | Bottom line refers to the net income that a company generated after sales and expenses are considered. The word bottom in the term depicts the location of the net earnings or the net income in the income statements, i.e., the last line of the bottom of the page. |
| Breakout | It refers to a price movement in which a security breaks through an established support or resistance level, signaling a potential trend reversal or a continuation of the existing trend. |
| BSE | Bombay Stock Exchange (BSE) is one of the 2 major stock exchanges in India. Having been established in 1875, BSE is Asia’s first stock exchange. In addition to enabling the trading of equities, BSE also provides a market for currencies, debt instruments, derivatives and mutual fund units. Indian Clearing Corporation and BSE Institute are subsidiaries of BSE. |
| Bull Market | A bull market is a trend of rising stock prices or indices for an extended period. Usually, if the stock price or indices have risen at least 20% from the previous low, it is considered a bull market. |
| Bullion | Bullion is a name given to precious metals like gold, silver, and platinum in their purest form. Bullion is generally sold in the form of ingots, bars and unmarked coins. Value of bullion is derived from the quantity and purity of the used metal and not its casted shape. |
| Bullish | Being bullish means having a positive view on the price or future performance of an asset or market, expecting it to go up. |
| Buy Side Analyst | Buy side analysts are analysts who research stocks and other securities in primary and secondary markets which can generate good returns employed by companies that deploy funds in the market for their clients. They use fundamental analysis, track sectoral growth and news to find the right investment opportunities. |
| CAGR | CAGR is the measure of an investment’s annual growth rate over time, with the effect of compounding taken into account. |
| Candlestick | A type of chart that displays the open, high, low, and close prices for an asset over a timeframe using a rectangluar shapes which resembles a candlestick. The green candle represent a closing price greater than opening price while a red candle represents a closing price lower than the opening price. The wick of candle represents the highest or lowest point reched by the security during the timeframe. |
| Capital Expenditure (CapEx) | The money spent by a company to acquire or upgrade its physical assets or invest in long-term projects. It is important for a company’s growth, helping them expand production, work better, or enter new markets. |
| Capital Gains Tax | Capital gains tax is a tax on profits made from selling of assets. There are two types: short-term capital gains tax and long-term capital gains tax, depending on how long the asset was held before selling. |
| Cash & Cash Equivalents | Cash and cash equivalents are those assets in the company’s balance sheet that are held in cash in banks or such investments which are highly liquid in nature and can be converted into cash in a very short amount of time. Eg: Bank FDs, commercial paper, money market funds etc. |
| Cash Flow | The amount of cash generated or consumed by a company’s operating, investing, and financing activities. |
| CDSL | Central Depository Services (India) Limited (CDSL) is one of the 2 depositories in India. Depositories enable the holding of securities in dematerialised form and transaction of securities. The company describes itself as a market infrastructure institution (MII) and provides services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. |
| Central Bank | A country’s central bank is the primary authority that manages the currency of a country and controls its supply in the economy. As a result affecting key interest rates, inflation and GDP growth rates. In India Reserve Bank of India functions as a central bank. |
| Circuit | The upper circuits and lower circuits are the highest and lowest market prices a stock can trade at on a given trading day respectively. |
| Clearing Corporation | A clearing corporation is a organization that manages the confirmation, settlement, and delivery of transactions on the stock exchange. Clearing Corporation of India handles this for Indian exchanges like NSE and BSE. |
| Clearing Member | A clearing member is a member of the clearing corporation who settles the trades which have taken place in the secondary markets. Clearing members are generally banks, mutual fund houses, and brokers. |
| Close Price | It refers to the final price at which a particular security was traded on an exchange during a specific timeframe |
| Commodity | Commodities are raw materials consumed directly or used to produce other goods. They include agricultural products and metals such as gold, silver, and copper. Investors and traders often use commodities to diversify their portfolios and hedge against inflation or other economic risks. |
| Competitive Advantage | A unique quality or resource that gives a company an edge over its competitors. |
| Competitive Analysis | Evaluating a company’s competitors, their market share, strengths, and weaknesses to assess market positioning. |
| Compounding | Compounding is when the amount you invest and the profit it makes, is used to make more profits. It is the process through which you would earn amplified returns because you reinvested your gains. |
| Consolidation | It refers to a period when a security’s price moves within a relatively narrow range, usually marked by repeated tests of the same support and resistance levels. |
| Consumer Price Index (CPI) | Consumer price index tracks the change in the prices of basket of goods and services over a period of time. It helps in understanding the rate of inflation seen in the economy. |
| Contingent Liability | Contingent liabilities are potential liabilities or losses which may fall upon a company in future due to uncertainty related to its business. These can be in the form of lawsuits, pending investigations, fines, warranties, etc |
| Contrarian Investing | It is an investment strategy where an investor goes against the general market sentiment about a certain stock or sector. Hence, you sell when others are buying and buy when others are selling. |
| Convergence | Convergence occurs when two or more indicators or price trends move closer to each other over time. Convergence often indicates a potential continuation of the current trend or a period of reduced volatility. |
| Convertible Bond | Convertible bonds are bonds that gives the owner of such bonds a right to acquire a predetermined number of equity shares of a company on exercising the conversion option. Under normal circumstances, it will perform as a common bond and provide yield in the form of interest payments. |
| Cut Off Price | The cut-off price is the offer price at which the shares get issued to the investors in an IPO. Investment Bankers compute this number based on the bids received by them during the IPO process. |
| Cyclical Stock | A cyclical stock is a type of stock that tends to go up and down based on changes in the economy in a predictable fashion. For example, consumer discretionary stocks usually do well when the economy is doing well and people have more money to spend, but they may struggle when the economy is not doing so well. |
| Debenture | These are instruments used by large corporates to raise funds at a fixed interest rates but without any collateral to back. Investors generally invest in them based on the goodwill and earnings of corporates which offer them. They provide higher yields than collateral backed bonds. |
| Debt-To-Equity | Debt-to-equity (D/E) ratio is the ratio of a company’s total debt and financial liabilities to the value of its shareholder’s equity. The debt-to-equity ratio is a measure of how levered a company is or rather how much of a company’s assets are financed through debt. Usually, low debt-to-equity ratios are more desirable, but one should also keep in mind the sector of the company to get a proper idea of how levered the company is. |
| Decline | The number of securities from a sector or index that have decreased in price during a specific period of time. |
| Deep-In-The-Money | Deep in the money is any option contract that has nearly all its value in intrinsic terms (difference between strike price and current price) and minimal extrinsic or time value. For eg: If Nifty is trading at 18500 and I have a call option of strike price 17500 priced at ₹1050, then the extrinsic value is only ₹50 and intrinsic value is ₹1000 which is the difference between strike price and market price. |
| Defensive Stock | A defensive stock is any stock that is least affected by the change in economic conditions. These stocks are also called non-cyclical stocks since they don’t follow economic cycles. The main reason for this behavior is that the consumption of goods or services these stocks provide doesn’t depend on market cycles. Eg: defense stocks, pharma stocks, etc. |
| Deflation | Deflation is when the prices of goods and services generally decrease over time. This can occur due to a decrease in the money supply or a decrease in consumer demand. |
| Delisted Stock | Delisted stocks refer to the stocks that are taken off from the exchanges. Delisted stocks have to be traded outside exchanges and in the over-the-counter market. A stock may get delisted due to multiple reasons, including bankruptcy, inadequate market capitalisation, or failure to meet regulatory requirements. Companies may delist voluntarily due to non-performance, amalgamations, and mergers. When a stock is being delisted, the promoters must offer to buy back the shares through a reverse book-building process. |
| Delivery | Delivery is when ownership of shares transfers from one investor to another after a trade settles in a demat account. This indicates a long-term interest in the share rather than intraday trading. |
| Delta | Delta is the theoretical estimate of how much an option’s value may change given a ₹1 move up or down in the underlying security. The Delta values range from -1 to +1, with 0 representing an option where the premium barely moves relative to price changes in the underlying stock. |
| Demat account | A demat or dematerialised account electronically holds the shares traded by investors. |
| Depository | A depository is a company that electronically stores securities for investors. It holds shares, bonds, mutual fund units, government securities, and more. In India, we have two depositories: CDSL and NSDL. |
| Depository Participant (DP) | Depository participants are mediators between depositories and investors. They are also referred to as agents of depositories and generally stock brokers act as depository participants. |
| Depreciation | A reduction in the value of an asset over time due to regular wear and tear. For eg: the value of a car bought by you reduces as it gets older and older. |
| Descending Top | Descending tops is a pattern on a chart where each price peak is lower than the previous one, showing a bearish market trend. |
| Devaluation | The reduction or underestimation of the worth or importance of something from what it was valued at earlier. It is also used in the context of currencies and exchange rates. It refers to the intentional decrease in the value of a country’s currency relative to other currencies in the foreign exchange market. When a currency is devalued, it means that it now takes more units of that currency to buy one unit of another currency. |
| Discount Broker | A stock broker who offers a platform to trade securities to his clients at low costs is called a discount broker. |
| Divergence | Divergence occurs when two or more indicators or price trends move farther away from each other over time. It suggests a lack of agreement or alignment between the indicators, which can signal potential changes in the market direction. Divergence often indicates a potential reversal or weakening of the current trend. |
| Diversification | Diversification means not putting all your money into one thing. You spread it across different investments like stocks, bonds, or real estate to lower the risk. |
| Dividend Declaration Date | This is the day that the company announces its intent to issue dividends. Usually, this is when the company’s AGM/EGM takes place, and the company’s board approves the dividend issue. |
| Dividend Payout Date | This is the day that the dividends are paid to the shareholders listed in the company register. |
| Dividend Yield | The dividend yield of a stock is calculated by dividing the total dividends paid in a particular year by its current price expressed in percentage terms. It denotes how much money you could get back as dividends based on what you paid for the stock. |
| Domestic institutional investors (DIIs) | Institutional investors who invest in their home country are called as domestic institutional investors (DII). DIIs can include mutual fund houses, insurance companies, pension funds and banks. Institutional investors are often called market makers due to the high portion of trades carried out by them. They are essential for a market to be liquid. |
| Double Bottom | A double bottom is a technical chart pattern where the price of an asset drops to a certain level, then bounces back, and then falls again to the same level before bouncing back once more. It resembles two troughs at around the same price point. This pattern can suggest a possible reversal from a downtrend to an uptrend. |
| Double Top | A double top is a technical chart pattern where the price of an asset reaches a certain level, pulls back, and then makes another attempt to reach the same level again. It looks like two peaks at approximately the same price point. This pattern indicates a potential reversal from an uptrend to a downtrend. |
| Dow Jones Industrial Average (DJIA) | The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes, |
| Downtrend | A downtrend refers to a consistent downward movement in the price of a stock or market over a period of time. It indicates a negative momentum and often signifies a bearish market sentiment. |
| Drawdown | Drawdown is the decline of a stock price from its peak during a specific period of investment. A drawdown is usually measured in percentage. For eg: If a stock was trading at ₹100 at its peak and trades at ₹80 today then it has shown a drawdown of 20%. |
| Dumping | Dumping is a situation where investors sell large values of their holdings in a stock. If a very heavy dumping of stock happens then the stock price may fall sharply reaching lower circuit levels. |
| Earnings Per Share (EPS) | Earnings per share (EPS) is the ratio of the net earnings of a company in a previous financial year to the number of outstanding shares. EPS is a measure of the profitability of a company. |
| EBITDA | Earnings before interest, taxes, depreciation and amortisation (EBITDA) is a measure of a company’s core profitability. Depreciation and amortisation are non-cash expenses, and the taxes and interest expenses depend on a company’s capital structure. By ignoring these expenses investors can learn about the cash profits earned by a company through their main business. |
| Economic Indicators | Data points that reflect the health and performance of an economy, such as unemployment rates or consumer spending. |
| Emerging Markets | Emerging markets are economies of countries that are in the process of rapid growth and development, but which have not yet reached the level of maturity and stability seen in developed countries. For example: India, Brazil, China, Mexico, Indonesia etc |
| ETF Liquidity | ETF Liquidity refers to how easily you can buy or sell units of an Exchange-Traded Fund (ETF) without causing a big change in its price. If an ETF is highly liquid and there are many people trading it, you can quickly get in or out without affecting its price much. On the other hand, if an ETF is less liquid, there might not be as many buyers or sellers, and trading could impact its price more. |
| Ex-Dividend Date | It is the day when a company’s shares start trading without the right to receive the upcoming dividend payment. If you buy shares on or after the ex-dividend date, you won’t get the dividend payment. If you buy shares before this date, you willll be entitled to the dividend. |
| Exchange Traded Fund (ETF) | Exchange-traded funds (ETFs) are like a mix of mutual funds and stocks. You can buy and sell them on exchanges like stocks. They gather money from many investors and invest in different things, like mutual funds do. |
| Exit Load | Exit load refers to the fees charged by mutual funds when an investor sells their units (exit). It is only charged if investors pull out their money from mutual funds early, usually within a specific time after you put it in |
| Expense Ratio | The expense ratio of a mutual fund is the fee charged by the asset management company. It covers the costs of managing the fund, like administration, advertising, salaries, etc. An expense ratio of 1% per annum means that each year 1% of the fund’s total assets will be used to cover expenses. |
| Exponential Moving Average (EMA) | A technical indicator that calculates the average price of an asset over a specified period of time, giving greater weight to more recent prices in the calculation. The EMA is more responsive to changes in price trends than a simple moving average, and is commonly used to identify short-term trends in the market. |
| Extended Internal Rate of Return (XIRR) | XIRR, or Extended Internal Rate of Return, is a financial metric used to calculate the annualized rate of return for an investment that involves irregular cash flows. It takes into account both the timing and the amount of these cash flows, providing a more accurate representation of the investment’s performance over time. |
| Face Value | The face value of a security is a term used to describe the security’s nominal or original value at the time of issuing and is unaffected by market conditions. In the case of stocks, the face value is the original cost of the stock as listed on the certificate, while in the case of bonds, it is the amount paid to the holder at maturity. |
| Fair Value | An estimated price at which buyers and sellers would freely trade an asset is called its fair value. The various ways to determine the fair value of an asset include looking at recent market transactions for similar assets, estimating its expected earnings or the cost of replacing it. |
| Federal Open Market Committee (FOMC) | FOMC or the Federal Open Market Committee is a twelve member body of the US Federal Reserve which makes the important economic decision of managing key interest rates and money supply in US markets. Since US Dollar is a major currency used for trading between nations the decisions of FOMC is very important data point to track for investors. |
| Floating Interest Rate | A floating interest is the rate of interest of any debt instrument which changes periodically either positively or negatively due to changes in the underlying economic condition or market cycle. |
| Follow-on Public Offer (FPO) | Follow-on public offers (FPOs) are issuances of new shares by a company already listed on stock exchanges. Public offers are ways for companies to raise money that can be used for various purposes like expansion activities or paying off existing debt. This is different from an IPO where a company invites public to invest in them for the first time. |
| Forecasting | Making predictions about a company’s future financial performance based on historical data and market trends. |
| Foreign Institutional Investors (FII) | Institutional investors established or incorporated outside India seeking to invest in securities in India are called Foreign Institutional Investors (FII). For developing countries, FIIs can be an important source of capital. However, various countries place limits on the FIIs to limit their influence on a country’s capital markets and the damage they might cause if they flee during a crisis. |
| Free Float | Free float refers to the percentage of a company’s shares that are available for trading in the stock market. It excludes shares held by company insiders or major investors that are not actively traded. It gives an idea of how many shares are accessible for buying and selling by the general public, which can impact stock prices. |
| Front-Running | Front running is an illegal activity when someone uses insider information about upcoming trades to buy or sell stocks before others. The front runner invests before everyone else and gets out of the trade once the peak price has been achieved. |
| Full-Service Broker | If a broker provides other services besides the facility to trade securities, like market research, retirement planning, portfolio management, etc then they are called as full-service broker. |
| Fund Of Funds (FoF) | Funds of funds (FoFs) are mutual funds that invest in other mutual funds or ETFs to provide high level of diversification in assets. |
| Fundamental Analysis | Fundamental analysis is a technique of studying a stock on information about its business or the sector in which it operates. Usually, fundamental analysts use financial statements, the state of the economy, interest rates etc. to figure out if the stock price is fair or not. |
| Gamma | Gamma is the rate of change for an option’s delta based on a one point move in the underlying security’s price. It is a second-order factor, sometimes known as the delta of the delta. Gamma is at its highest when an option is at the money and is at its lowest when it is further away from the money. |
| Gap up or Gap down | Gap up or gap down refers to a situation where the price of a stock or market opens significantly higher (gap up) or lower (gap down) than its previous closing price. This gap is often caused by news or events that occur outside of regular trading hours and can indicate strong buying or selling pressure. |
| Gold ETF | Gold ETFs are ETFs which invest in gold as an underlying asset either through gold bonds or bullion (physical gold). |
| Gold Funds | Gold funds are investment funds that invest in gold and gold-related assets. Gold funds include gold ETFs and gold mutual funds. For example, gold ETFs invest in 99.5% purity gold, while gold mutual funds invest in gold ETFs. |
| Government Securities (G-Secs) | Government securities (G-Secs) are debt instruments issued by the government through which it raises funds from capital markets. Long-term G-secs offer periodic interest payments, while short-term g-secs are issued at a discount and redeemed at par. |
| Grandfathering Clause | When a new clause or policy is added to a law, certain persons may be relieved from complying with the new clause. This is called “grandfathering”. “Grandfathered” persons enjoy the right to avail concession because they have made their decisions under the old law. |
| Gross Domestic Product (GDP) | The total value of all goods and services produced within a country’s borders, used to gauge economic activity. |
| Growth Plan | A growth plan in a mutual fund is a type of scheme which reinvests profits and dividends made back into the scheme. This plan is suitable for those looking for capital appreciation over the long term. |
| Hedging | Hedging is a strategy that tries to limit risks in financial assets. Put another way, investors hedge one investment by making a trade in another. Futures and options are generally used as instruments for hedging. |
| Heikin Ashi charts | They are similar to traditional candlestick charts, but instead of using the open, high, low, and close prices for each period, Heikin Ashi charts use a modified formula to calculate the prices. The formula takes into account the previous period’s prices and uses an average of the open and close prices as well as the high and low prices. This creates a smoother representation of price action and helps to filter out noise in the data. |
| High Price | It refers to the highest price at which a particular security was traded on an exchange during a specific timeframe. |
| Holding Company | A holding company is a type of financial organization that owns a controlling interest in other companies, which are called subsidiaries. The parent corporation can control the subsidiary’s policies and oversee management decisions but doesn’t run day-to-day operations. |
eDIS (Electronic Delivery Instruction Slip) is a facility through which you can authorize your sell transactions before placing the order. You can authorize your eDIS on Share.Market.
DDPI (Demat Debit and Pledge Instruction) is a replacement for POA. It allows brokers to directly debit stocks from your demat account and deliver them to the exchange. This makes for a more seamless trading experience.
This may happen if your selfie isn’t clear, doesn’t match your Aadhaar photo, or if you’re trying to create an account from outside India.
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\n\n\n\n\nThis may happen if your KYC submission on some other platform is under verification or put on hold at the KRA (KYC Registration Agency).
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\n\n\n\n| Term | Definition |
| Quant | “Quant” is a term for someone who uses math and statistics to study financial markets and investments. |
| Quick Ratio | Quick ratio, also known as the acid-test ratio, is a financial metric that measures a company’s ability to cover its short-term liabilities with its most liquid assets, excluding inventory. Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities |
| Rebalancing | Rebalancing a portfolio means making trades to keep the portfolio on track with the chosen strategy and to adjust for any strategy changes. |
| Record Date | The record date is the designated date on which an investor must be listed as a shareholder in order to be eligible to receive dividend, bonus shares or split shares. |
| Relative Strength Index (RSI) | An indicator to see if a stock or asset is overbought or oversold, helping to understand if it might change direction soon. |
| Resistance | A price level above the current market price where selling interest is expected to emerge and prevent further price increase. |
| Return | Return refers to the profit or loss generated from an investment over a certain period of time. |
| Return on Investment (ROI) | The percentage return earned on an investment relative to its cost. |
| Revenue | The total income generated by a company through its core operations. |
| Rights Entitlement | Rights entitlement are temporary shares credited to your demat account as a part of the rights issue of a company you hold shares in. You are eligible for and can choose to subscribe to these shares or let them lapse. They are not rights shares by themselves and are only used to apply for the rights shares. |
| Risk | Risk is the chance of an investment’s actual gain differing from the expected outcome. It includes but is not limited to the possibility of making losses. |
| Risk Management | Risk management is the identification of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. |
| Risk Reward Ratio | The risk/reward ratio, sometimes known as the “R/R ratio,” compares the potential profit of a trade to its potential loss. It is calculated by dividing the difference between the entry point of a trade and the stop-loss order (the risk) by the difference between the profit target and the entry point (the reward). |
| ROCE Ratio | Return on Capital Employed (ROCE) is a ratio of the company’s operating profit or EBIT (earnings before interest and taxes) and total capital employed. It helps assess a company’s profitability and capital efficiency. |
| ROE Ratio | Return on equity (ROE) is a ratio of a company’s net income and shareholder’s equity. ROE is a ratio that helps investors determine whether a company is utilising its funds efficiently or not. |
| Rollover | Rollover is a way of churning the current positions in futures contracts to the next expiry contract by cutting the positions in current expiry contract and entering into the next expiry contract. |
| Secondary Market | Once a company’s new shares have been sold in the primary market and get listed, those shares are traded on the secondary stock market. No new shares are issued and investors buy and sell the existing shares at market prices. |
| Sector | Companies from similar industries are placed in the same sector. For example, if there are 30 companies producing chemicals, 30 companies will be placed in the chemicals sector. Similarly, if there are 20 companies producing fast-moving consumer goods (FMCGs), 20 companies will be placed in the FMCG sector. |
| Sector Funds | A sector fund is a mutual fund that invests in a specific type of industry or sector. As per AMFI they are required to invest at least 80% of investment amount in stocks of the particular sector/ theme. |
| Sensex | BSE SENSEX is BSE’s benchmark index made up of the 30 largest and financially sound companies listed on BSE. Its name is derived from the words ‘sensitive’ and ‘index’. SENSEX is meant to reflect the overall condition of the Indian stock market and is calculated using the free float market capitalization method. |
| Settlement Cycle | Settlement cycle refers to the time it takes for a trade executed on a stock exchange to be fully completed, including the exchange of ownership and payment for the securities. In India, the settlement cycle for all traded instruments is T+1 day, with T representing the trading day. |
| Share Buyback | Share buyback is when a company purchases its own shares from the market, reducing the total number of outstanding shares. This can lead to an increase in the value of the remaining shares and potentially enhance the earnings per share. |
| Shareholding Pattern | A shareholding pattern is a disclosure of the company’s ownership pattern of promoters and non-promoters like mutual fund houses or retail investors. Typically, shareholding patterns are presented as pie charts or bar charts with percentage annotations. |
| Short Squeeze | A short squeeze happens when investors who bet that a stock’s price will fall (short sellers) face rising prices. They need to buy back the stock quickly to limit their losses, which drives the price even higher. |
| Simple Moving Average (SMA) | A indicator that calculates the average price of an asset over a specified period of time, by adding together the prices of the asset over that time period and dividing the total by the number of time periods. It is used to identify the overall trend in the market. |
| Slippage | Slippage is the slight increase or decrease of the expected price of the stock you want to trade and the actual price at which it was executed. It can happen due to various factors like market volatility, liquidity, and order size. |
| Small-Cap | As per SEBI, small-cap companies are those firms ranked 251 or lower by full market capitalization. |
| Spot Price | The spot price is the current price in the marketplace at which a given asset can be bought or sold for immediate delivery. |
| Square-off | Square off refers to the action of closing or exiting an open trading position. It can involve selling a bought position or buying back a sold position. |
| Standard Deviation | It measures how much the returns of a security tend to vary from its average historic returns. It helps assess the risk or volatility, higher standard deviation denoting higher variability of returns and vice versa. |
| Stock Exchange | Stock exchanges are markets where securities are bought and sold. These securities include stocks, bonds and derivatives. In India, there are 2 major stock exchanges, namely the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). |
| Stock Market Bubble | Stock market bubbles are phases in which stock prices rise well above their intrinsic values. They are often a result of speculative activities and followed by stock market crashes. |
| Stock Split | Stock split is a corporate action that involves reducing the face value of shares and increasing the number of shares. Stock splits do not affect the market value of companies, but due to the increased number of shares, the liquidity of its shares might increase. |
| Stocks | A stock represents ownership in a company. When you own stock in a company, you own a part of that company and may receive a share of its profits in the form of dividends or capital gains. |
| Stop-Loss | It is a type of order which can be placed with your broker over an already existing open trade such that in case of the position going against the investor/user he can get out of it with minimum losses. |
| Support | A price level below the current market price of a security where buying interest is expected to emerge and prevent further price decline. |
| Systematic Investment Plan / Automatic Investment Plan | Systematic Investment Plans (SIPs) involve making a fixed periodic investment into an asset of your choice. SIPs are a well-known way of investing in mutual funds, but you can set up SIPs in various assets. SIPs play an important role in making investing accessible to a larger number of investors as they help them start small. An advantage of SIPs is that since asset prices vary and the investment amount remains constant, investors would buy more at lower prices than at higher prices. This phenomenon is known as Rupee Cost Averaging. |
| T + 1 Settlement | T+1 rolling settlement is when traded funds are settled into your account one day after the trading day (T). |
| T-Bill (Treasury Bill) | A Treasury Bill (T-Bill) is a short-term government debt obligation with a maturity of one year or less. |
| Technical Analysis | Technical analysis is a technique of studying historical price and volume data of a stock to forecast future price movements. Usually, technical analysts use chart patterns, trends, and various indicators to making decisions. |
| Technical Indicators | Technical indicators use historical price and volume data to help predict future price movements. |
| Timeframe | TImeframe of a chart is the interval when data on the chart to get updated, intraday traders use short time frames of 5mins, 15mins, 1hour etc while long term investstors generally use time frames of days, months or years to study securities. |
| Trading | Trading involves trying to make profits from short-term fluctuations in asset prices. While an investor would hold a stock for at least a year and sometimes for decades, a trader might sell off the stock within minutes. Trading is considered riskier than investing as short-term price fluctuations can be challenging to predict. |
| Trading Range | Trading range refers to the price range within which a security’s price moves over a specific period of time. It is determined by identifying the highest and lowest prices that a security has traded during a given time period. It can be used to identify potential support and resistance levels. |
| Trailing Twelve Months (TTM) | Trailing Twelve Months (TTM) refers to the last twelve months of financial data used for measuring performance or calculating indicators. |
| Trend | The overall direction of a benchmark index or a stock ignoring minor fluctuations in prices |
| Trendline | A line drawn on a chart connecting two or more price points that can help identify the current trend in the market. |
| Underlying Security | An underlying security is a stock or bond on which derivative instruments, such as futures, ETFs, and options, are based. In most cases, the underlying security is the item which must be delivered by one party in the derivative contract and accepted by the other party. |
| Undervalued Stocks | Undervalued stocks are stocks whose current stock price is lower than their intrinsic value. Intrinsic value is the true worth of an stock, based on its underlying characteristics and potential future earnings. If a stock is undervalued, one can gain by investing in it and selling it off once it reaches its intrinsic value. |
| Upper Circuit | Upper circuits refer to the upper limit beyond which the price can not go on the current trading day. They are calculated as a percentage of the previous closing price. For a stock to hit the upper circuit, the current investors must not be willing to sell even at the upper circuit price, while various investors want to invest at that price. |
| Uptrend | An uptrend refers to a consistent upward movement in the price of a stock or market over a period of time. It indicates a positive momentum and often signifies a bullish market sentiment. |
| Valuation Analysis | Assessing the worth or fair value of a stock based on its financials, market conditions, and comparable companies. |
| Value At Risk (VAR) | Value at risk is a measure of the risk of loss for investments. It estimates how much a portfolio might lose, given normal market conditions, in a set period such as a day. |
| Venture Capital | Venture capital (VC) is a type of financing provided to startups and small businesses that have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and other financial institutions. |
| Volatility | Volatility refers to how much the price of an asset changes over time. High volatility means the price can go up and down quickly, while low volatility means it changes more slowly. |
| Volume | The quantity of trades which occurred in a security in a given period of time is volume. |
| Volume-Weighted Average Price (VWAP) | It is a trading indicator that calculates the average price of a security based on its trading volume. It helps traders understand the average price at which a stock was traded throughout the day, taking into account the volume of each trade. It is used by technical analysts. |
| Yield | Yield is the income returned on an investment, such as the interest received from holding a security. The yield is usually expressed as an annual percentage rate based on the investment’s cost or current market value. |
| Zero-Beta Portfolio | A portfolio constructed to have zero systematic risk, that is, having a beta of zero. This means that it is not affected by market movements and stays stable even if the market goes up or down. |
| Term | Definition |
| In The Money(ITM) | An “in-the-money” is a term used in options trading to describe a situation where the option’s strike price is favorable to the current market price of the underlying asset, resulting in potential value for the option holder. These often have intrinsic value, meaning there is a realizable gain if the option is exercised immediately |
| Income Distribution Cum Capital Withdrawal (IDCW) Plan | An IDCW plan in a mutual fund is a type of scheme where a portion of profits and dividends earned are distributed to investors at regular intervals in form of cash. This plan is suitable for investors looking for regular income. |
| Income Distribution Cum Capital Withdrawal (IDCW) Reinvestment Plan | An IDCW plan in a mutual fund is a type of scheme where a portion of profits and dividends earned are distributed to investors at regular intervals in form of units of the same fund. |
| Income Statement/Profit & Loss Account | A financial statement that shows a company’s revenues, expenses, and net income over a specific period. |
| Index | An index measures the price performance of a basket of securities (equities, bonds, etc). |
| India Vix | India VIX, or the India Volatility Index, measures expected market volatility based on Nifty 50 index options, acting as a “fear gauge” to assess investor sentiment and market risk. The higher the India VIX, more volatile the NIFTY is expected to be. |
| Industry Analysis | Evaluating the performance and trends of a specific sector or industry to identify investment opportunities. |
| Industry P/E | It is a metric to judge the average valuation of companies within the specific industries. Comparing industry P/E with company P/E helps investors judge whether the stock is relatively cheaper or expensive to its peers. |
| Inflation | The rate at which the general level of prices for goods and services is rising, eroding purchasing power. |
| Insider Trading | Insider trading refers to trading a company’s securities by insiders based on material information that is not publicly available. Insider trading is considered unfair and illegal as the insiders stand to make unfair gains at the cost of outsiders to the company. |
| Insolvency | Insolvency is a state of financial distress in which a business or person is unable to pay their bills. This can lead to legal action and selling of assets to repay debts. |
| Interest Rates | The cost of borrowing money or the return earned on savings, impacting investment decisions. |
| Intraday | Intraday trading is style of trading in which buyers or sellers of a security settle their trades before the market closes on that particular day itself. |
| IPO | An Initial Public Offering (IPO) refers to the process of a company issuing shares to the public in order to get listed on the stock exchange. |
| Issue Price | The issue price of a security is the price at which they are offered for sale when they first become available to the public. |
| Kagi charts | They are constructed by drawing vertical lines, known as “kagi lines”, to represent price action. Kagi charts ignore time and only focus on price changes, with each line representing a specific price range. When the price of the asset surpasses the top of the previous kagi line, a new bullish line is drawn, and when the price falls below the bottom of the previous line, a new bearish line is drawn |
| Know Your Customer/Client (KYC) | KYC is a required process for financial institutions to verify a person’s identity before offering financial services. It helps prevent fraud, money laundering, and other illegal activities. |
| Large-Cap | As per SEBI, large-cap companies are those firms ranked between 1 and 100 by full market capitalization. |
| Last Traded Price (LTP) | It is the price at which the most recent trade of a particular security took place on a stock exchange. |
| Level Playing Field | These are policy standards which are applicable to all the participants involved in a operating business in a particular sector of economy. No special treatment is provided to anyone in terms of exception to law, etc, |
| Leverage | In finance, leverage is use of borrowed capital for any investment, with an expectation that the profits made are greater than the interest paid. |
| Liability | A liability is a responsibility or debt that an individual or company owes to someone else due to past transactions or obligations. For eg: If you take a loan from any bank then the loan amount is a liability upon you, while for the bank it is an asset. |
| Limit Order | A limit order is a buy or sell order punched on an exchange with a fixed price, only when the price criteria is met the order goes through and the transaction gets completed. For Eg: If you want to buy 50 shares of XYZ at ₹500 and it is trading at ₹505, then your buy order will execute only when the stock price reaches ₹500 else the order will get canceled at the end of the day. |
| Line charts | They are a type of financial charts created by plotting the closing prices of an asset on a graph and connecting them with a line. |
| Liquid Fund | Liquid funds are debt funds that invest in fixed-income securities such as certificates of deposit, treasury bills, commercial papers, and other debt securities that mature within 91 days. |
| Liquidation | Liquidation is the process of converting all the security holdings in your entire portfolio or a part of it into cash. |
| Liquidity | Liquidity refers to the ease with which an investor can buy or sell a particular asset without changes in its price. |
| Liquidity Ratios | Financial ratios that measure a company’s ability to meet its short-term obligations, such as the current ratio or quick ratio. |
| Listing | Listing is the process of price discovery of a stock by selling its shares to general public and getting it up on the stock exchanges. |
| Lock-In Period | The lock-In period is a period of time during which the security held by an investor cannot be sold to anyone else. For example: Certain mutual funds have a lock-in period before they can be sold. |
| Long-Term Capital Gain Tax | LTCG tax or long term capital gains tax is a tax applicable on profits accrued due to the sale or purchase of securities which are held for more than certain specified period. |
| Low Price | It refers to the lowest price at which a particular security was traded on an exchange during a specific timeframe. |
| Lower Circuit | Lower circuits refer to the lower limit below which the price can not go on the current trading day. They are calculated as a percentage of the previous closing price. For a stock to hit the lower circuit, the current investors must not be willing to buy even at the lower circuit price, while various investors want to sell at that price. |
| Lumpsum | Lumpsum investment refers to putting big amount of money into an investment all at once, instead of spreading it out over time like systematic investment plan (SIP). |
| Management Fee | A management fee is a charge levied by an investment manager for managing an investment fund. The management fee compensates the managers for their time and expertise in managing the portfolio. |
| Management Team | The group of executives and leaders responsible for making strategic decisions and running a company. |
| Margin | Margin trading is borrowing money from a broker to purchase securities or equity shares. |
| Margin Call | Margin call is an intimation by broker when an investor/trader needs to add additional funds in their trading accounts. This is to make sure investors have enough funds to keep their trades open and not get automatically closed. |
| Mark-To-Market | Mark-to-market is a system of valuing an asset based on its current market price in real time. |
| Market Cap | Market cap or market capitalisation is the market value of a company calculated by multiplying its share price by its number of outstanding shares. The market cap of a company is used as an indicator of its size. Companies are often divided into large-cap, mid-cap and small-cap categories based on their market capitalisation. |
| Market Rate | It is the current price of any security which is trading in secondary market on realtime basis |
| Market Sentiment | It refers to the outlook of traders and investors towards market or an asset, and can be described as bullish (positive), bearish (negative), or neutral (uncertain). |
| Market Trends | The general direction of the stock market or a specific industry, indicating potential opportunities or risks. |
| Mid-Cap | As per SEBI, mid-cap companies are those firms ranked between 101 and 250 by full market capitalization. |
| Moat | When we say a business has a good moat, we are saying that it has a high ability to protect its market share and set them apart from competitors. |
| Momentum | It refers to the rate of increase of an asset’s price over a specific timeframe. |
| Momentum Stocks | Momentum stocks are stocks which show a high rate of change in price over a period of time. A higher rate of change of price help investors determine the strength of a trend and invest in these stocks to gain profits. |
| Money Market | The money market is a type of financial market where short-term borrowing and lending of funds take place. It includes various instruments like Treasury bills, commercial paper, and certificates of deposit etc. |
| Mortgage | A mortgage is a contract with a lender that lets them take a borrower’s property if they don’t pay back the money borrowed with interest. |
| Mortgage-Backed Securities | A mortgage-backed security is a type of asset-backed security which is secured by a mortgage or collection of mortgages. The mortgages are securitized and packaged, such that investors can buy. |
| Moving Average | A technical indicator that smooths out price fluctuations by calculating the average price over a specific period of time. |
| Moving Average Convergence Divergence (MACD) | MACD is a technical indicator that measures the difference between two exponential moving averages, revealing potential shifts in momentum and trend direction in underlying security. It helps traders identify bullish and bearish signals. |
| Multi Commodity Exchange (MCX) | MCX or Multi Commodity Exchange is an Indian commodities exchange that deals in the trading of commodity derivatives. |
| Multibagger Stocks | Multibagger stocks are those stocks that provide investors with returns multiple times higher than the cost of investing in them. Coined by Peter Lynch, a prominent investment manager from the 80s and 90s, the term refers to stocks that yield exceptional returns. |
| Municipal Bonds | Municipal bonds (“munis”) are debt securities issued by state and local governments. |
| Mutual Fund | A mutual fund is a fund that collects money from a number of investors and invests the same in equities, bonds, money market instruments and/or other securities. These funds are managed by registered professionals with expertise in capital markets. |
| Nasdaq | Nasdaq Stock Market is an American stock exchange based in New York City. It is ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. NASDAQ Index is the benchmark index of this exchange and mainly consists of technology stocks. |
| National Stock Exchange (NSE) | The National Stock Exchange of India (NSE) is one of India’s 2 major stock exchanges. In addition to facilitating the trading of stocks, NSE also facilitates the wholesale debt market and the cash market segment. |
| Net Asset Value (NAV) | NAV is the value of one unit of a mutual fund scheme which an investor can invest in. The value of NAV changes based on the value of the underlying assets held in the mutual fund scheme and helps in tracking its performance. |
| Net Income | The profit earned by a company after deducting all expenses, taxes, and interest. |
| New York Stock Exchange (NYSE) | NYSE is one of the largest stock exchanges in the world. It is based in lower Manhattan District of New York City in USA. |
| NIFTY | NIFTY 50 (commonly referred to as just NIFTY) is NSE’s benchmark index made up of 50 companies listed on the NSE and is meant to reflect the overall market conditions. It was launched in 1996. |
| NSDL | National Securities Depository Limited (NSDL) is one of the 2 depositories in India. Depositories enable the holding of securities in dematerialised form and transaction of securities. The company describes itself as a market infrastructure institution (MII) and provides services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors. |
| OHLC | Short for Open-High-Low-Close of a security in a given time frame. OHLC data is widely used in various forms of financial charting and technical analysis to assess price movements and trends. |
| One Cancels The Other Order (OCO) | A combination of two orders in which the execution of either one automatically cancels the other. |
| Open Market Operation | The buying and selling of government securities namely treasury bills, notes, and bonds by the central bank of a country. It is one of many ways through whic central bank controls the supply of money in the economy. |
| Open Network for Digital Commerce (ONDC) | Open Network for Digital Commerce (ONDC) is a government initiative for promoting open networks for all aspects of the electronic or digital exchange of goods and services. With ONDC, buyers and sellers need not be on the same platform to discover each other, making it easier for customers to find products. Also, ONDC takes away the power of imposing policies from platforms and helps smaller retailers access the online marketplace. |
| Open Price | It refers to the price at which the first trade of particular security took place on an exchange during a specific timeframe. |
| Operating Income | Operating income is the money a company earns from its regular business operations, like selling products or services. It’s the income before deducting interest, taxes, and other non-operational expenses. |
| Options | An option in finance is a contract that gives the owner the right to buy or sell a particular asset at a specified price and date. There are two kinds of options: call options and put options. |
| Orders | An order is a request made to buy or sell a security. Traders and investors use different types of orders to specify the conditions under which they want the trade to be executed. |
| Organization of the Petroleum Exporting Countries (OPEC) | The Organization of the Petroleum Exporting Countries is a cartel of 13 petroleum exporting countries. The 13 member countries account for an estimated 44 percent of global oil production and 81.5 percent of the world’s proven oil reserves. The decision of these countries on the production of crude oil moves the prices of these commodities as well as the world economies. |
| Oscillator | A technical indicator used to identify potential overbought or oversold conditions in the market. DIfferent types of Oscillators such stochastic oscillator, relative strength (RSI), rate of change (ROC), and money flow (MFI) are available for use by traders. |
| Out-Of-The-Money | “Out of the money” (OTM) options refer to an option contract whose strike price is unfavorable in relation to the current market price of the underlying asset. In this situation, exercising the option would result in a loss if done immediately. Traders use OTM options for various strategies, such as speculative bets on significant price movements or as part of complex option spreads. |
| Overbought | It is when price has risen significantly and quickly, to a level that some investors consider higher than its fair value. |
| Oversold | It is when price has fallen significantly and quickly, to a level that some investors consider lower than its fair value. |
| Oversubscription | Any extra amount received by the company more than the proposed issued capital during IPO or FPO is called as oversubscription |
| P/B Ratio | Price-to-book (P/B) ratio is a valuation multiple calculated by dividing the market capitalisation of a company by its book value. |
| P/E Ratio | Price-to-earnings (P/E) ratio is a valuation multiple that is calculated by dividing the share price of a company by its earnings per share (EPS). |
| Paid Up Capital | The part of the issued capital of a company that has been paid up by the shareholders |
| Pattern | It is a recognizable and repeatable formation of price movements on a chart. It can help traders predict potential future price movements based on historical price behaviors. |
| Penny Stocks | Penny stock is a term that originated in the US markets and was used to describe stocks whose prices were just a few pennies. Typically penny stocks have low market capitalisation, share prices, and liquidity. |
| Pivot points | They are price levels calculated using the high, low, and closing prices of the previous trading day or a specified timeframe. It is used to identify potential support and resistance levels for the current trading day. |
| PMI Index | The Purchasing Manager’s Index (PMI) is an economic indicator derived from the monthly survey of the private sector companies. PMI aims in providing information regarding the current and future conditions of a business to the decision-makers, analysts and investors of the company. |
| Point and figure charts | These charts use a grid of Xs and Os to represent changes in price. The Xs represent uptrends and the Os represent downtrends, with each box on the grid representing a set price increment. |
| Portfolio | An investor’s portfolio is the collection of all their investments across all asset classes, e.g. stocks, bonds, commodities, real estate, etc. Ideally, an investor’s portfolio should match their risk profile and be appropriate for the kind of goals they want to achieve. |
| Power Of Attorney | A power of attorney is a written document where one person gives another person the authority to act on their behalf for certain tasks or actions. |
| Pre-market open / post-market open | Pre-market open and Post-market open refer to specific time periods before and after the regular trading hours of the stock market, respectively. These extended trading sessions allow investors to place orders and react to news outside the standard trading hours. |
| Preference shares | Type of shares that gives its owners right to receive dividends before common shareholders and have priority in case the company goes bankrupt and assets are distributed. |
| Presumptive Taxation | Presumptive taxation is a simplified method of calculating income tax for certain small businesses or professionals based on assumed income, rather than actual detailed calculations. This helps ease the tax process for those with relatively simple financial situations. |
| Price Action | Price action is about understanding how a security’s price moves on a chart, without using indicators or external factors. It includes looking at patterns, trends, and important price levels to make trading decisions. |
| Primary Market | The primary market is where newly issued securities, like stocks and bonds, are sold for the first time by companies or governments directly to investors. |
| Profit Margin | The percentage of revenue that becomes profit after deducting expenses. |
| Profitability Ratios | Financial ratios that measure a company’s ability to generate profit, such as gross profit margin or return on assets. |
| Promoter Holding | Promoter holding is a measure of equity of a company held by its promoters. It is expressed as a percentage calculated by dividing the number of shares with promoters and the total number of shares of the company. High promoter holding stocks might be considered to be safer than low promoter holding stocks as it reflects the high confidence of promoters in the company. |
| Put/Call Ratio | The ratio of put trading volume divided by the call trading volume. For example, a put/call ratio of 0.74 means that for every 100 calls bought, 74 puts were bought. The Put-Call Ratio provides insights into investor sentiment, market expectations, and potential shifts in the overall market direction. |
To set or change your biometric,
\n\n\nTap your profile picture>Manage Your PhonePe Account.
\n\n\n\nTap Enable Biometric and press your finger over the fingerprint detector.
\n\nThis may happen if:
\n\n\n\nYour KYC may fail or get rejected because:
\n\n\n\nWhile taking the selfie, please make sure of the below:
\n\n\n\nYou may be asked to share your documents through DigiLocker again if you haven’t completed e-signing your account opening form within 3 days from the last time we fetched your documents.
\n\n\n\nIn this case, you will have to start the account opening journey again and share your documents with us through DigiLocker.
\n\n\nKnow Your Customer (KYC), a process mandated by SEBI requires us to verify your identity and address details to enable you to open a demat and trading account.
\n\n\nA demat account is like a savings account for your stocks. Any shares and securities you buy using your trading account will be stored digitally in your demat account. When you open a demat account, you will have a unique 16-digit account number that you can use to start trading.
A trading account, is an account that allows you to buy and sell shares and securities and also helps you manage funds for trading.
Validity is the duration till when the order remains valid in the exchange. For example, a limit order placed in the morning remains valid in the exchange for a match until the market closes.
\n\n\n\nDepending on the order type, you can choose the validity of your order for the following time periods:
\n\n\n\nIOC (Immediate or Cancel): The orders are executed immediately. If the order is not executed immediately, it gets cancelled.
Day: The order is valid till the market closes i.e., at 3:30 pm on the day of order placement.
The tick size is the smallest price increment in which the prices are quoted. It is generally 5 paisa (or ₹0.05), but also depends on absolute price of stocks. In some cases, it may be 1 paisa (or ₹0.01).
\n\n\nYour documents will be fetched and verified automatically when you tap Proceed to DigiLocker. Once this is done,
\n\n\nEnter your Aadhaar number and captcha and tap Next.
\n\n\n\nEnter the OTP sent to your Aadhaar registered mobile number and tap Continue.
\n\n\n\nEnter your DigiLocker Security PIN, and tap Continue.
Note: If you’ve not set your PIN, tap Forgot PIN and set a PIN
Tap Allow to provide consent to DigiLocker to share your documents with Share.Market.
\n\nYou can now resume the demat and trading account opening on Share.Market.
\n\n\nIf you have not activated DDPI, you need to authorize sell orders via TPIN as mandated by SEBI. This provides extra protection while selling stocks and ETFs.
\n\n\nWealthBaskets should be allowed a long investment period to deliver the desired performance. Additionally, you should evaluate WealthBasket returns with respect to benchmarks instead of in absolute values.
\n\n\nTo view the status of your orders placed in the last 24 hours, go to the Activity Log and tap View Order Book beside Your Latest Orders.
\n\n\nOnce you exit the WealthBasket, no further payments will be scheduled for auto-debit.
\n\n\n\nHowever, please note, your mandate is scheduled two days before the date of renewal (T-2) and if you exit the WealthBasket after this day (T-2), your subscription fee will be deducted.
Note: You won’t receive a refund of your subscription fee if you exit a WealthBasket.
For paid WealthBaskets with a percentage fee option, you will need to pay an additional fee based on the percentage specified. This will be adjusted in your next monthly or quarterly renewal fees on overall time-weighed average asset value.
\n\n\n\nIf you have subscribed to a fixed-fee WealthBasket, you do not need to pay any additional fee for the time period your subscription is valid.
\n\n\nYou can pay the subscription fee for WealthBaskets only through UPI.
\n\n\nThe subscription charges for WealthBaskets vary depending on the WealthBasket you choose to invest in. Some WealthBaskets have a fixed subscription fee for a set period. You can view the subscription charge for each WealthBasket on its details page.
Note: You may incur brokerage as per Share.Market brokerage rates
You can choose not to accept WealthBasket recommendations. However, these recommendations are based on the investment strategy or theme to ensure that WealthBasket performs well. If you don’t take the recommendations, you may not be able to achieve the best performance for your WealthBasket.
\n\n\nYour buy orders may get rejected or partially completed due to insufficient funds in your trading account.
\n\n\n\nYour sell orders may get rejected if you’ve not given us the authorization for sell trades. If you’ve not enabled DDPI, please ensure you have authorized sell trades using TPIN before execution. This is a mandate by SEBI to avoid misuse of permission.
You can check the above and try placing the rejected orders again. To do this, go to Activity Log and tap Retry next to the particular WealthBasket.
You can see your WealthBasket recommendations as a part of your pending actions in the Activity Log for your WealthBaskets.
\n\n\n\nYou will also receive notifications for these WealthBasket recommendations through emails and push notifications.
\n\n\nTo find all the WealthBaskets, tap WealthBasket on your app or web and tap Explore All WealthBaskets.
\n\n\nTo convert your shares to demat form, download the DRF form below, fill it out, and courier it to the below address along with the original physical share certificate:
\n\n\n\nPhonePe Wealth Broking Pvt Ltd, Office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103, India.
\n\n\n\nPlease create a ticket for this on your app or web and we will help you.
\n\n\n\n\n\n\nYes, you may get dividends if the stocks in your WealthBasket are providing them. Dividends will be directly credited to your bank account. You can track the paid-out dividends in your performance report.
Note: The dividend gains in your WealthBasket are a part of the realised gains.
Currently, WealthBaskets consists of direct equities and multi-asset ETFs.
\n\n\nYou don’t have to pay any entry fee for most WealthBaskets. However, there may be a few curators who charge a subscription fee for WealthBaskets. You can see the subscription charges for WealthBaskets, if applicable, on the details page of the relevant WealthBasket.
\n\n\n\nYou don’t have to pay an exit fee for any WealthBasket.
Note: You may incur transactional charges for entry, exit, and rebalancing of your WealthBasket.
The minimum investment amount varies for different WealthBaskets. You can see the minimum investment amount on the details page of the relevant WealthBasket.
\n\n\nNo, KYC is not mandatory for purchasing most of the WealthBaskets if it is already done on Share.Market.
\n\n\n\nHowever, some WealthBasket curators require mandatory KYC verification to maintain their records.
\n\n\nYes, you can leverage short-term & mid-term market opportunities with WealthBasket.
\n\n\n\nThere may be thematic or quant-based WealthBaskets offered with short or medium-term horizons. You can make tactical investments in such WealthBaskets and take advantage of short-term or emerging opportunities.
\n\n\nYes, you can. WealthBaskets based on different strategy models and themes including fundamental, thematic, sectoral, factor or model-based, are available on the platform and support a core-satellite investing strategy very well.
\n\n\n\nThe core and satellite strategy is similar to having some investments that grow slowly and steadily over a long period (core), and others that might change quickly to catch special opportunities (satellite). It helps your money grow safely while also trying to make the most of available market opportunities.
\n\n\nYes, WealthBasket is a liquid financial product. Their liquidity is similar to that of stocks and ETFs.
\n\n\nThe risks of investing in WealthBaskets are similar to those associated with stocks or ETFs.
Note: You can also read Part B of the account opening form on risk disclosure for more details on this. You will find the account opening form in your registered email ID.
Investment strategies vary from curator to curator. These include,
\n\n\n\nHere are a few benefits of investing in WealthBaskets:
\n\n\n\nA WealthBasket is a basket of stocks and ETFs curated using intelligent and research-backed investment strategies or themes.
\n\n\nYou may be unable to see some stocks in your holdings if they have been delisted or suspended. You will be able to see them in your holdings again only if they are listed back in the exchange.
\n\n\nDelivery is a trading type in which you invest in stocks over a longer period (more than a day). The shares you’ve bought using delivery will be credited to your demat account only on the next trading day.
\n\n\n"},{"id":"cG9zdDo5MTI0","uri":"/home/manage-your-funds/withdrawal-of-funds/withdraw-funds/what-is-an-auto-settlement/","title":"What is an auto-settlement?","description":"\nAs per SEBI regulations, all brokers must transfer all unused funds in your trading account back to your bank account on the first Friday of either the month or quarter. This is called auto-settlement. You choose whether to receive this money monthly or quarterly, at the time of opening an account with us.
\n\n\n\nNote:
\n\n\n\nNo, as per exchange and regulatory rules, if you’ve sold your shares on a given day, you won’t be able to use the entire amount for trading on that day.
\n\n\n\nIf you’ve sold your shares today, you can only use only upto 80% of the entire amount on that day itself for trading. You will get this amount immediately. However, you will get the rest of the amount in your trading account only on the next trading day.
Important: In the case of BTST (Buy Today Sell Tomorrow) trades, you will receive the entire amount only on the next trading day.
To change your 4-digit passcode,
\n\n\n\nIf you have forgotten your passcode,
\n\n\n\nNote: Once you have changed your passcode, you will have to log in again to access your Share.Market account.
\n\n\nTo set your 4-digit passcode,
\n\n\nAfter logging in to your Share.Market account, tap Proceed.
\n\n\n\nEnter and re-enter your new 4-digit PhonePe passcode.
\n\n\n\nTap Save.
\n\nFirst-time login: Enter your mobile number and the OTP sent to it.
If you already have a demat account with us: Enter your mobile number, the OTP sent to it, and your PhonePe passcode
You can use your mobile number registered with PhonePe to log into your Share.Market account.
\n\n\n\n\nYour order may have been cancelled due to the following reasons:
\n\n\n\n\n Need help with an order?\n
\n \nYour order may have been partially executed because there was not enough market depth for the placed quantity at the limit price you have set or because the stock had hit a circuit.
\n\n\n\n Need help with an order?\n
\n \nYour order may get rejected because of the following reasons:
\n\n\n\n\n Need help with an order?\n
\n \nA stock buyback is when a company repurchases its shares from existing shareholders, to reduce the number of outstanding shares in the market.
\n\n\nTo revoke your eDIS authorization for a scrip,
\n\n\nGo to the Help section on your app or website.
\n\n\n\nTap Contact Support.
\n\n\n\nTap Managing my account > Trading or Demat account > eDIS revocation
\n\nNote: The eDIS revocation would be applicable only for stocks where delivery sell orders are not executed or are pending execution. If you have placed any orders post eDIS revocation request, your revocation request will get rejected. Kindly do not place any delivery sell orders post raising eDIS revocation request.
\n\n\nNomination is a process that ensures the easy transfer of securities from your demat account to your nominee’s demat account in the event of the account holder’s death.
\n\n\nThe block deal session timings are as follows:
\n\n\n\nMorning Window: This window shall operate between 08:45 am to 09:00 am
Afternoon Window: This window shall operate between 02:05 pm to 2:20 pm
Note: Block deal trades are defined as trades with more than 5 lakh shares or a value exceeding ₹5 crores of a particular company listed on the exchange being traded.
\n\n\nThe post-closing market session is from 3:40 pm to 4:00 pm. You can only place market orders in this session for the equity segment only.
\n\n\n\nPre-market open and Post-market open refer to specific time periods before and after the regular trading hours of the stock market, respectively. These extended trading sessions allow investors to place orders and react to news outside the standard trading hours.
\n\n\nYes, you can place your orders in pre-open market sessions.
\n\n\n\nHowever, if your orders are not matched during the pre-open market session, they will be moved to the normal trading session at the opening price.
\n\n\nA pre-open market session is used to determine the ideal opening price for a stock for that particular trading session. The pre-open market session is from 9:00 am to 9:15 am (15 minutes) after which the trading session starts on NSE and BSE. The order collection, modification, and cancellations happen between 9:00 am to 9:08 am. The orders placed are matched and trades are confirmed after 9:08 am.
\n\n\nWe offer almost all major technical indicators like:
\n\n\n\nNo, currently you cannot buy or sell stocks from the chart window.
\n\n\nStock markets in India are closed on Saturdays, Sundays, and days declared as holidays by the Central government. Exchanges issue a trading holiday calendar that informs the general public of all holidays applicable for the current year. Here is a list of trading holidays for 2024.
\n\n\nYou can choose between two chart views on our platform: Chart IQ and Trading View
\n\n\nNSE and BSE have their regular trading sessions from 9:15 am to 3:30 pm, Monday to Friday except on holidays declared by the exchanges.
\n\n\n\nNote: You won’t be able to place orders between 9:08 am to 9:15 am and 3:30 pm to 3:40 pm.
\n\n\nTo apply studies or technical indicators on your app, select the relevant scrip and tap under the Chart section. You can now select the study or indicator you want to apply.
\n\n\n\nTo do this on the web, select the relevant scrip, tap , and select the study or indicator you want to apply.
\n\n\nTo change your chart view, tap your profile picture>Preferences/Chart Preferences and select the chart type you want to use.
\n\n\nA watchlist is a list of stocks or ETFs that you can create, sort, and monitor so that you can make informed and strategic decisions in your investment journey.
\n\n\nExchange Traded Funds (ETFs) are a basket of securities you can trade on a stock exchange anytime during the trading day. While stocks represent shares within individual companies, ETFs offer shares of multiple companies within a packaged bundle, mostly mimicking an index.
\n\n\n\nSince units of an ETF are solely listed on the stock exchange, they can only be traded on the stock exchange. So, in the case of an index based ETF, when you buy units of an ETF, you are buying underlying shares of various companies that are a part of the index, replicating the return or performance of that index.
\n\n\n\nNote: AMOs or After Market Orders are not allowed on ETF.
\n\n\nAdditional Surveillance Measures (ASM) and Graded Surveillance Measures (GSM) are taken by SEBI to safeguard the interest of investors and maintain market integrity. These measures help keep a tab on securities that witness an unnatural price rise that does not align with the financial health of the company such as earnings, book value, price-to-earnings ratio, etc.
\n\n\n\nThe ASM and GSM scrip lists are not permanent and change from time to time depending on the market condition. Exchanges issue a list of scrips under various surveillances as short-term ASM, long-term ASM, GSM, IRP, SMS circulation stock, high pledge, and default.
\n\n\nIf you are unable to submit the application, you can tender the shares offline directly to the company. The company will buy the shares back within one year from the date of delisting. The tender price for the shares will be fixed by the company at the exit price.
\n\n\nYes, you can sell your shares before the company is delisted. You can evaluate the company’s exit offer and decide if it’s favourable for you. If not, you may choose to sell your holdings before the company gets delisted.
\n\n\n\n
Note: Some companies will get delisted without an exit offer. This may result in significant losses to investors.
While a delisted stock can be relisted on an exchange, it’s a rare occurrence as the delisted company would have to avoid bankruptcy, solve the issue that forced the delisting, and comply with the exchange’s standards.
\n\n\n\n
Note: A company may need to wait either 5 years or 10 years to list their stock on the exchange again based on certain parameters.
Delisted stocks are usually considered a loss unless:
\n\n\n\nStock delisting is the removal of securities of a listed company from a stock exchange. The shares of that company would no longer be traded on that stock exchange. There are two types of stock delisting:
\n\n\n\nCompanies buy back their shares for the following reasons:
\n\n\n\nOnce the tendered shares are accepted by the company, you will usually receive the money in your registered bank account within 2 weeks.
\n\n\n\nNote: The timeline for crediting the amount to your bank account differs from company to company.
\n\n\n\n\n\n"},{"id":"cG9zdDo1NDY0","uri":"/home/trading-investment/corporate-actions/stock-buyback-2/where-do-companies-propose-the-buyback-of-their-shares/","title":"Where do companies propose the buyback of their shares?","description":"\n
Listed companies are required to inform the stock exchange of general meetings and resolutions passed. Hence, information on companies proposing to buyback shares may be obtained from the stock exchanges.
\n\n\nAll shareholders of a company who own the shares on the record date are eligible for a buyback. If you intend to buy stocks to apply for a stock buyback, ensure that the shares are bought using the delivery product type, as only stocks that have been credited to the demat account are considered for a buyback.
\n\n\n\nNote:
\n\n\n\nYes, the price of shares is usually higher than the market price during stock buyback.
\n\n\nA stock buyback is done through either of the below two ways:
\n\n\n\nNote: By submitting their shares through a tender offer, shareholders can avail the opportunity to earn a premium, as companies usually compensate investors for tendering their shares.
\n\n\nA stock buyback is when a company repurchases its shares from existing shareholders, to reduce the number of outstanding shares in the market.
\n\n\nYou can buy a partly paid share by paying only partially instead of its full issue price. The balance amount for the partly-paid shares can be paid in instalments depending as per the calls made by the company.
\n\n\n\nFor example, if you are holding 18 shares of a company and the ratio for rights entitlements is 1:10, then you will only receive one rights entitlement for every ten shares you own. If you want to receive two rights entitlements, you will have to buy two more shares.
\n\n\nA rights issue renouncee receives or buys rights entitlements in renunciation from a seller that does not wish to subscribe to their rights.
\n\n\nA rights issue renouncer transfers or sells their rights entitlements to another person at a price.
\n\n\nThe allotment of shares will be done within 60 days of receiving the application money or as decided by the company.
\n\n\n\n"},{"id":"cG9zdDoyNDE5","uri":"/home/trading-investment/corporate-actions/issuing-of-rights/what-happens-if-i-dont-participate-in-the-rights-issue/","title":"What happens if I don’t participate in the rights issue?","description":"\n
If you do not apply for the rights issue, the temporary rights entitlement shares in your demat account will lapse and will be debited from your account once the new shares allocation process is complete.
\n\n\n\nIf you have exercised the rights entitlements on listing the blocked amount will be debited from your bank account to acquire those shares.
\n\n\nEligible shareholders will receive the temporary rights entitlement shares in their demat account before the rights issue opens for public purchase. Once you have the rights exercised, applications for rights issue can be made. The payment amount for the rights will be blocked in your bank account and the payment can be made online using net banking or UPI from your bank account.
\n\n\n\nNote: The final amount debited from your bank account will only be the price of the exercised rights entitlements.
\n\n\nYou may or may not choose to subscribe to the rights shares you’re entitled to. Should you choose to exercise the rights offer, you have to pay a certain amount based on the rights price and the number of shares eligible.
\n\n\nTo calculate the share price after the rights issue, add the current market value of all shares existing before the rights issue to the total funds raised from the rights issue sales.
\n\n\n\nTo calculate the average price of your holdings after the rights issue, divide this number by the total number of shares in existence after the rights issue is complete.
\n\n\n\nNote: When a rights issue is offered, the stock price gets diluted and will likely go down as more shares are issued to the market
\n\n\nIf you do not want to subscribe to your rights issue shares, you can sell the rights entitlement in the open market through the stock exchange’s rights entitlement trading platform or through off-market transactions.
\n\n\nRights entitlement are temporary shares credited to your demat account as a part of the rights issue of a company you hold shares in. You are eligible for and can choose to subscribe to these shares, sell the entitlements, or let them lapse.
\n\n\n\nNote: Rights entitlement shares are not rights shares by themselves and are only used to apply for the rights shares.
\n\n\nThe trading of rights entitlements commences on the opening date for the rights issue announced by the company. It generally closes 3-4 working days before the rights issue closure day.
\n\n\n\nThe listing of rights entitlements is subject to the company’s decision. If a company decides to list the right entitlements on the exchange as a part of the rights issue, the event will be announced before the listing through circulars.
\n\n\n\nNote: Intraday trading is not permitted using rights entitlement shares as their settlement happens on a T+1 day basis.
\n\n\nRights are offered only to shareholders of the company on the record date. To avail of a company’s rights issue, you will have to ensure that you hold the shares in your demat account on the record date.
\n\n\nA rights issue is an invitation to existing eligible shareholders to purchase additional new shares in a company in proportion to their existing shareholding and as decided by the company. This proportion is decided by the company. Using these rights, the shareholder can purchase entitled shares at a discount on a future date. This is usually done as a fundraising activity by the company.
\n\n\nWhile the bonus shares you’ve received will reflect in your holdings immediately, you will be able to trade the bonus shares only after they have been credited to your demat account.
\n\n\nThe average price of the stock reduces in proportion to the number of bonus shares after the bonus shares are issued. This is because the number of shares issued by the company increases. For example, if a company issues bonus shares in a ratio of 1:1, the share price for a single share is halved.
\n\n\nIt usually takes 15 days from the record date for bonus shares to be credited to your demat account. You will receive a notification from CDSL when your bonus shares get credited.
\n\n\n\nNote: The time period for when the shares will be credited to your account depends on the RTA (Registrar & Share Transfer Agents).
\n\n\nThe company issues bonus shares in a certain ratio called the bonus share ratio. For example, if the bonus share ratio is 1:5, you will get 1 free share for every 5 shares you hold. If you hold 100 shares on the record date, you will have 120 shares after the 20 bonus shares are credited to your account.
\n\n\n\n| Bonus ratio | Old face value | Shares held before bonus | Share price before bonus | Investment value before bonus | New Face Value | Shares held after bonus | Share price after bonus | Investment value after bonus |
| 1:1 | 10 | 100 | 500 | 50000 | 10 | 200 | 250 | 50000 |
| 3:1 | 10 | 100 | 500 | 50000 | 10 | 400 | 125 | 50000 |
Note: In a bonus share issue, the investment value and face value will remain the same. However, the number of stocks held increases.
\n\n\nCompanies issue bonus shares to encourage investors to buy shares thereby increasing their equity base. When the price per share of a company is high, it becomes difficult for new investors to buy its shares. Issuing bonus shares increases the number of shares thereby reducing the price per share. A company also issues bonus shares to its existing stakeholders if it is unable to pay them a dividend due to a lack of funds.
\n\n\nShareholders who own the company’s shares on the ex-dividend date/ record date are eligible to receive bonus shares from the company.
\n\n\nBonus shares are additional shares given to the current eligible shareholders without any additional cost, in proportion to the number of shares they own. These are the company’s accumulated earnings which are given out as shares instead of dividends.
\n\n\nWhile the additional shares you’ve received as a part of the stock split will reflect in your holdings immediately, you will be able to trade the additional shares only after they have been credited to your demat account.
\n\n\nStocks that undergo a split can take up to T+2 working days from the record date to be credited to your trading account. This duration may vary from company to company.
\n\n\nThe price depends on the stock split ratio. The most common split ratios are 2:1 or 3:1, which means that after the split, you will have two or three shares respectively, for every share you held beforehand.
\n\n\n\nFor example, if the stock’s face value is ₹10, and there is a stock split in the ratio of 2:1, then the face value will change to ₹5. If you owned 1 share of ₹10 before the split, you would now own 2 shares of ₹5 after the split. Here’s the breakdown for this example:
\n\n\n\n| Split ratio(A) | Old face value(B) | Shares held before split(C) | Share price before split(D) | Investment value before split (C*D) | New face value(A*B) | Shares held after splitE =(C/A) | Share price after splitF =(D/A) | Investment value after split(E*F) |
| 1:2 | 10 | 100 | 500 | 50000 | 5 | 200 | 250 | 50000 |
| 1:5 | 10 | 100 | 500 | 50000 | 2 | 500 | 100 | 50000 |
Note: In a stock split, the investment value remains the same. The face value and stock price decrease and the number of stocks held increases.
\n\n\nA stock split is when a company increases the number of its outstanding shares by issuing more shares to current shareholders, while the face value of the stock decreases. The ratio by which stocks get split is decided by the company in the AGM/EGM after approval from the board of directors and shareholders.
\n\n\n\nIn a stock split, the number of outstanding shares increases and the price per share decreases proportionally. As the per-share price is lower, they’re more affordable.
\n\n\n\nThe value of the company does not change after a stock split.
\n\n\nAs per Section 194, TDS applies to dividends distributed, declared, or paid on or after 01-04-2020. An Indian company shall deduct tax at the rate of 10% from dividends distributed to the resident shareholders if the aggregate amount of dividend distributed or paid during the financial year to a shareholder exceeds ₹5,000.
\n\n\nTheoretically, after a stock goes ex-dividend, the share price drops by the amount of the dividend paid, to ensure that new shareholders are not entitled to that payment.
\n\n\nAs the trade is settled on the same day, the shares remain in your demat account and you will be eligible for dividends. As long as the shares are in your demat account on the record date, you will be eligible to receive dividends.
\n\n\nTo collect a stock’s dividend you must own the stock at least 1 (one) trading day before the ex-dividend date or the shares should be on the books on the record date.
\n\n\nAny dividend received on your investments will be directly credited to the registered bank account.
\n\n\n\nWhile it differs from company to company, dividend payouts are usually completed within 1 (one) month of the record date.
\n\n\nOnce the company sets the record date, the ex-dividend date is set based on stock exchange rules. With T+1 settlement, the ex-dividend date and the record date are the same, except in the case of settlement holidays. If you purchase a stock on or after its ex-dividend date, you will not receive the next dividend payment.
\n\n\nYes, you can sell stocks on the ex-dividend date and still receive the dividend.
\n\n\nTo be eligible for dividends, you need to be holding the stock in your demat account on the record date of the dividend issue. You should have bought the stock at least one day before the ex-date so that the stocks are delivered to your demat account by the record date.
\n\n\nA dividend refers to a portion of a profit that a company gives to its eligible shareholders. A company’s final dividend is decided by its board of directors and requires the shareholders’ approval before being declared in the annual general meeting.
\n\n\n\nDividends can be paid quarterly, semi-annually, or annually, based on the company’s profitability and internal approvals. They can be paid anytime during the financial year even in cases where the company has faced a loss subject to criteria stated in the Companies Act, 2013. If dividends are paid during the financial year, they are called interim dividends. Dividends paid at the end of the financial year after the company’s total earnings are called final dividends.
\n\n\n\nNote:
\n\n\n\nAn unrealized profit and loss is calculated with respect to positions you still hold. This becomes a realized profit and loss when you sell or exit that position.
\n\n\nAn open order is an order that is yet to be executed. This may happen because:
\n\n\n\nTo exit or square off your open positions on your app,
\n\n\n\nTo do so on the web,
\n\n\n\nYou can see all your positions under the Positions section in your Portfolio.
Note: You can view your open or closed positions by tapping the Open Orders toggle button.
The Positions tab will show you a detailed breakdown of the positions of your intraday trades on a given trading day. This includes details like the average purchase price, last traded price, your unrealized profit and loss for intraday trading, etc.
\n\n\nNote: Currently, Share.Market does not allow users to place bracket orders. We will notify you once this feature is available.
\n\n\n\nA bracket order is a type of market order that combines a buy order with a stop-loss and target price. Bracket orders allow users to square off a favourable position by the end of the trading session.
\n\n\nYes, you can sell stocks bought from one exchange on another.
\n\n\nNote: Currently, Share.Market does not allow users to place GTT orders. We will notify you once this feature is available.
\n\n\n\nGood Till Triggered (GTT) is an order type that helps automatically execute an order when it hits the trigger price you’ve set. It is available for both buy and sell orders and can be cancelled at any time. GTT orders are usually placed for longer periods.
\n\n\nNote: Currently, Share.Market does not allow users to place cover orders. We will notify you once this feature is available.
\n\n\n\nA cover order is a market or limit order accompanied by a compulsory stop-loss order.
\n\n\n\nCover order = initial order (buy or sell) + stop-loss order (sell or buy)
\n\n\nIf you’ve sold the shares on a given day, you’ll receive the money for it in your trading account only on the next trading day. You can withdraw this money only after it has been credited to your trading account.
\n\n\nTo exit or sell all your holdings of a scrip,
\n\n\n\nAMO will be placed in pre-open market sessions. However, a conditional AMO and AMOs that have a disclosed quantity will be placed only when the market opens.
\n\n\nYes, you can place a market orders and limit orders as an AMO.
\n\n\n\nHowever, as the market prices are volatile, we suggest you not use a market order, to avoid a higher execution price for a buy position and a lower execution price for a sell position.
\n\n\n\nInstead, it is advised to place AMOs as limit orders with a limit price.
\n\n\nYes, you can place an AMO on a Saturday, Sunday, or any other non-trading day. The order will be placed in the market on the next trading day.
\n\n\nAfter Market Order (AMO) helps you place an order beyond regular trading hours. These orders are accepted between 4:00 pm and 8:55 am and will not be accepted between 8:55 am and 9:00 am. AMO is executed on the next trading day.
\n\n\n\nNote: You won’t be able to place orders between 9:08 am to 9:15 am and 3:30 pm to 3:40 pm
\n\n\nYes, stop-loss orders can be placed for intraday or delivery trading. However, stop-loss orders are valid only for one day.
\n\n\nTo add more shares through your app or web,
\n\n\n\nImportant: Stop-loss orders can be cancelled or modified, only if they haven’t hit the trigger price yet.
\n\n\n\nTo modify or cancel a stop-loss order on the app or web,
\n\n\n\nTo place a stop-loss order on the app or web,
\n\n\n\nA stop-loss instruction helps limit your losses in a situation where the market prices go against your trade. For example, you own stock ABC bought at ₹100. Of course, you want the price to go up. However, you want to protect yourself from losses in case the trade goes against you. You can set the stop loss trigger price as ₹95 to limit the maximum loss that you can bear at ₹5. Stop-loss instructions help minimise losses without having to constantly monitor markets.
\n\n\n\nThe delivery shares you’ve bought or sold on a given trading day will be credited to or debited from your demat account only on the next trading day.
\n\n\nA conditional limit order, also called a Stop Loss (SL) order, is an order that gets executed at the limit price you’ve set once the trigger price gets hit. A conditional limit order becomes a limit order once the current market price hits the trigger price.
\n\n\n\nFor example, say you’re placing a Conditional Limit Order to buy a stock, with a trigger price of ₹105, and a limit price of ₹107. If the share is currently trading in the market at ₹100, then when the price hits ₹105 your order will be triggered at a price set or better.
Note: Ensure that the trigger price is less than the limit price for a buy order and vice-versa for a sell order.
The Holdings tab will show you a detailed breakdown of all trades you’ve made under delivery like the total amount you’ve invested, the current value of your holdings, your unrealized profit and loss etc.
\n\n\n\nNote: There may be differences in the details of your holdings if:
\n\n\n\nTo place a conditional market order on the app,
\n\n\n\nTo place a conditional market order on the web,
\n\n\n\nA conditional market order, also called Stop Loss Market (SLM) order, is an order that gets executed at the next best available price once the trigger price gets hit. A conditional market order becomes a market order once the current market price hits the trigger price.
\n\n\n\nFor example, if you’re placing a Conditional Market Order to buy a stock which is currently trading at ₹100, with a trigger price of ₹105, the order gets activated when the stock price hits ₹105 and will be executed at the next best available price.
\n\n\nIn the stock exchange, stocks are bought or sold on a ‘first come, first serve’ queueing basis. This means that, if there are multiple bidders for the same offer, the bidder who placed their order first will get their order executed on priority.
\n\n\n\nHence, a limit order may occasionally not get executed partially or completely even when the stocks are available at your limit price range.
\n\n\nNo, a limit order does not guarantee execution. It is possible that limit orders may not get executed partially or completely. This is because the execution of limit orders depends on the availability of buyers for your sell limit order or sellers for your buy limit order, at the price and quantity you have specified. Limit orders will be triggered only if the price you have specified is hit.
\n\n\nFor certain order types, you can choose to disclose to the market, the entire quantity, partial quantity or none of the shares you want to trade. The quantity that you disclose is shown in the market depth. This feature can generally be used while placing large orders to reduce impact cost. This also helps to get a better execution by disclosing only a smaller portion of the large order in the best bids and asks in the market depth.
\n\n\nYour limit order will get executed as a market order if,
\n\n\n\nFor example, if you place a buy limit order with a limit price of ₹100 and the share is trading at ₹95, the limit order will get executed at the market price of ₹95. Similarly, if I place a sell limit order with a limit price of ₹100 and the share is trading at ₹105, the order will get executed at ₹105.
\n\n\nA limit order is an order to buy or sell shares at a price you have set or better i.e. you can buy a stock at the specified price or a lower, and sell a stock at a specified price or higher.
\n\n\n\nFor example, if you have placed a buy limit order for stock ABC at ₹100, and the stock is trading at ₹105, then you intend to purchase the stock at ₹100, so when the stock reaches ₹100, the order will be executed.
\n\n\n\nSimilarly, if you have placed a sell limit order for stock ABC at ₹100, and the stock is trading at ₹95, then you intend to sell the stock at ₹100, so when the stock reaches ₹100, the order will be executed.
\n\n\nA profit and loss report captures your profit and loss on your trades done during a particular time period according to the T+1 settlement date. It captures only realized components of your trades, which means that it will only capture those transactions, which are actually bought and sold, and you made realized profits or losses. If you have bought a stock and haven’t sold it then it will not appear here.
\n\n\nA cash ledger is a statement of all your transactions on Share.Market including billing details, payins, and payouts.
\n\n\nA tradebook is a ledger that contains all the transactions you have made in the stock market from a trading account. Your tradebook will contain all trades made through the exchange platform.
\n\n\nYou will get a margin statement for a particular trading day only if you’ve made any trades on that day.
\n\n\nA margin statement tells you how much margin is currently blocked from your overall available balance against any open positions. It contains important fields such as Mark-to-Market (MTM) margin, the total margin available, and any margin excess/shortfall. After the billing is completed, you will get a margin report on your registered email ID. This is a compliance report in the format prescribed by SEBI.
\n\n\n\nThe margin statement for a given trading day will be sent to your registered email address.
\n\n\nWe usually send contract notes to your email as per the consent. If you want a physical copy, please email us at customerhelpdesk@share.market with your request. You will be charged ₹50 for delivery of each contract note towards courier and handling charges.
\n\n\n\nNote: Charges will be deducted from your cash ledger. Learn more about the associated charges.
\n\n\nThe details in a contract note can be used to verify trades at the exchange. The contract note gives you the details for the trades as follows:
\n\n\n\nA contract note is a legal record of all the trades executed on a given trading day. It includes the breakdown of all charges incurred for your transactions on that day. As per SEBI regulations, a contract note will be sent to your registered email address if you have made a trade on that day.
\n\n\n\nA contract note has User Information, Trade Information, and Charges.
\n\n\n\nUser Information:
\n\n\n\nThis contains basic information such as the date for which the contract note was created, the trading code, your name, and other details.
\n\n\n\nTrade information:
\n\n\n\nThis contains all the trade-related information. If a single order includes multiple trades at different prices the contract note will have multiple entries for the same.
\n\n\n\nCharges:
\n\n\n\nLearn more about the breakdown of charges.
\n\n\nHere’s how to use the functions available on Trading View:
\n\n\n\nHere’s how to use the functions available on Chart IQ:
\n\n\n\nIf your mobile number is not linked with your Aadhaar please visit your nearest Aadhaar Enrollment Centre and link your mobile number with your Aadhaar.
\n\n\n\nNote:
\n\n\n\nYes, your account will be marked inactive or dormant if you don’t log in for 12 months. To access your Share.Market account again, you will need to log in and complete your KYC verification again.
\n\n\nYes, you can open a demat account with us even if you already have a demat account with other brokers.
\n\n\nNo, you cannot link a demat account opened with another broker with your Share.Market account.
However, you can transfer your holdings from another demat account to your Share.Market demat account.
Central Depository Services Ltd (CDSL) is the depository for Share.Market.
\n\n\nTo transfer your holdings to the demat account you’ve opened with us,
\n\n\nDownload the DIS booklet from the other broker’s website.
\n\n\n\nFill out the booklet with your Share.Market demat account details. You can find these details in the CMR copy sent to your registered email ID or the Accounts section of your Share.Market app.
\n\n\n\nOnce you’ve filled out the booklet, submit it to the other broker.
\n\nThe other broker will then transfer your holdings to your Share.Market demat account.
\n\n\nImportant: You can eSign relevant documents only after you’ve drawn or added your signature as a part of your account opening.
\n\n\n\nTo eSign your documents,
\n\n\nTap Proceed to eSign.
Ensure you have ticked the boxes and given your consent as per SEBI regulation.
\n\n\n\nEnter your Aadhaar number or VID and tap Send OTP.
\n\n\n\nEnter the OTP sent on your Aadhaar registered mobile number and tap Verify OTP.
\n\nAadhaar eSign is an online electronic signature service that enables Aadhaar card holders to digitally sign documents for opening a demat and trading account.
\n\n\nThis happens if your bank account verification failed or because your bank account is frozen or blocked.
\n\n\n\nTap Upload Bank Proof and upload a cancelled cheque or bank statements for the last three months with your name, IFSC, and account number printed on it.
\n\n\nA primary bank account is an account that is used to:
\n\n\n\nImportant:
\n\n\n\nAfter you’ve entered your KYC details, enter or select your bank account details. Once this is done, we will verify your bank account details by crediting ₹1 to your bank account.
\n\n\n\nIf the verification fails, you will have to upload a cancelled cheque or bank statements for the last three months with your name, IFSC, and account number printed on it.
\n\n\n\n\nA politically exposed person is an individual in a political position of power or is part of a significant public function.
\n\n\nAs per SEBI regulations, all brokerages must transfer unused funds from the user’s trading account back to their linked bank account monthly or quarterly as a part of the account settlement process.
\n\n\nDemat Debit and Pledge Instruction (DDPI) authorises the stockbroker and the depository participant to access your beneficiary ownership account (BOA) to meet pay-in obligations for settling trades you’ve executed.
\n\n\n\nDDPI helps traders to:
\n\n\n\nDDPI is an optional authorization that you can avail at the time of account opening. However, DDPI is not applicable for the below transactions:
\n\n\n\nNo. Please visit your nearest Aadhaar Enrollment Centre to link them.
\n\n\nDigiLocker, a service provided by the Ministry of Electronics and IT, is a digital repository that digitally holds your essential documents like your driver’s license, PAN card, Aadhaar card, and vaccination certificate.
\n\n\n\nShare.Market uses DigiLocker to automatically fetch and verify your documents needed for KYC and account opening, making your account opening process simple, paperless, secure and smooth.
\n\n\nTo complete your KYC verification while creating your demat and trading account,
\n\n\n\nNote: After completing KYC verification and once your demat and trading account is open, you will receive your Account Opening Form (AOF) and Client Master Report (CMR) on your registered email ID.
\n\n\nTo link your PAN and Aadhaar:
\n\n\n\nOnce this is done, your PAN and Aadhaar will be linked within 10 days.
\n\n\nNo, you can use an email ID to create only one demat account with us.
\n\n\nUsually, you should instantly receive the OTP by email. If you haven’t received it:
\n\n\n\nWe need your mobile number and email ID for:
\n\n\n\nOnce you’ve successfully added all necessary details for account opening with us, your demat and trading account will be activated within 3 working days.
\n\n\nNo, you can only open one demat and trading account per PAN on Share.Market.
\n\n\nNo, you can currently open a demat and trading account only online with Share.Market.
\n\n\nYou can open an account with us if you have a PAN card, your Aadhaar is linked to a mobile number, you’re 18 years or older, and live in India.
\n\n\n\nNote: Politically exposed persons or those related can open an account with us. However, NRIs, non-individual PAN card holders, and joint demat accounts are not allowed
\n\n\nThere are two types of secondary markets – stock exchanges and over-the-counter markets. Stock exchanges are centralised platforms where securities trading takes place, without any contact between the buyer and the seller. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are examples of such platforms used widely for buying and selling online shares. Over-the-counter markets are decentralised markets where two parties trade directly without the presence of an intermediary.
\n\n\nSecondary Market participants are exchanges, clearing corporations, stock brokers (who are members of the stock exchanges), mutual funds or Asset Management Companies (AMCs), financial institutions, Foreign Portfolio Investors (FPIs), investment companies, individual investors, depository participants and banks.
\n\n\nOnce a company’s new securities have been sold in the primary market, they are then traded on the secondary stock market. It enables a constant valuation of the securities and helps in building the demand and supply. In this way, it helps in determining the price of the securities. Here, investors get the opportunity to buy and sell the shares among themselves at the prevailing market prices. Typically investors conduct these transactions through a broker or other such intermediary who can facilitate this process.
\n\n\nThere are several major participants in the Primary Market. These include merchant bankers, mutual funds, financial institutions, registrars, Foreign Portfolio Investors (FPIs), individual investors, as well as the issuers like companies, bodies corporate, brokers, and depository participants.
\n\n\nThe primary market is made up of the following components:
\n\n\n\nThe main objective of the primary market is to facilitate the company to raise long-term funds by issuing new shares.
\n\n\nThe stock exchange does the price matching for orders placed by investors like you. The exchange uses an electronic order matching system that matches buy and sell orders for a stock market, commodity market, or other financial exchange. The order matching system is at the core of all electronic exchanges and is used to execute orders from the participants of the exchange.
\n\n\nThe stock market is affected by many factors such as demand and supply, political upheaval, interest rates, current events, exchange rate fluctuations, natural calamities, global markets, etc.
\n\n\nStock prices go up or down based on the supply and demand of the given stock. When more people want to buy a stock (demand) than sell it (supply), the price moves up. Alternatively, if more people want to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
\n\n\nBeta is a market indicator that measures the expected move in a stock relative to movement in the overall market. A beta greater than 1.0 suggests that the stock is more volatile than the broader market, and a beta less than 1.0 indicates a stock with lower volatility.
\n\n\nAlpha is a market indicator which means the excess return on any investment after adjusting it for volatility in the market during the period of calculation and random fluctuations when compared with a benchmark index.
\n\n\n"},{"id":"cG9zdDoxNDgy","uri":"/home/trading-investment/beginners-guide/workings-of-the-stock-market/what-are-small-cap-companies/","title":"What are small-cap companies?","description":"\nIn India, SEBI defines small-cap companies as ranking 251st and lower per market capitalisation. Small-cap companies are considered to be riskier than large-cap and mid-cap companies, but they are also considered to have a higher growth potential than the other 2 category companies.
\n\n\nIn India, SEBI defines mid-cap companies as the ones ranking 101st to 250th as per market capitalisation. Mid-cap companies are considered to have higher growth potential than large-cap companies but less than that of small-cap companies. Mid-cap companies are considered to be safer than small-cap companies but riskier than large-cap companies.
\n\n\nIn India, SEBI defines large-cap companies as the 100 largest companies as per market capitalisation. They are well-established and considered to be safer than relatively smaller companies.
\n\n\nSTCG or Short term capital gains are profits accrued due to the sale or purchase of securities. For the equity segment, short-term capital gains are profits on shares held for less than 12 months.
\n\n\n\nNote: Short-term capital gains are taxed at the rate of 15% (plus surcharge and cess as applicable) currently.
\n\n\nLong-term capital gains (LTCG) are profits accrued due to the sale or purchase of securities. For the equity segment, long-term capital gains are profits on shares held for more than 12 months.
\n\n\n\nNote: Long-term capital gains are taxed at the rate of 10% excluding any cess or surcharge currently. However, these are exempt for profits of less than 1 lakh rupees.
\n\n\nHere are some of the benefits of investing:
\n\n\n\nThere is no definite best time to buy or sell shares as profit depends on the market and your trading and investment practices/strategies.
\n\n\nYour account may have been suspended due to the following reasons:
\n\n\n\nYou can add upto 3 nominees.
\n\n\nYes, you can add nominees at any point in time after opening your account with us.
\n\n\nNo, nomination is optional.
\n\n\nTo change your PhonePe passcode,
\n\n\nTap your profile picture> Manage Your PhonePe Account.
\n\n\n\nTap Change Passcode and enter your PAN and date of birth.
\n\n\n\nEnter your new passcode and the OTP sent to your mobile number.
\n\nIf you have forgotten your passcode,
\n\n\nTap Forgot Passcode and enter your PAN and date of birth.
\n\n\n\nEnter your new passcode and the OTP sent to your mobile number.
\n\nOnce you have changed your passcode, log in again to access your Share.Market account.
\n\n\nNo, according to SEBI regulations, you can only add funds from the bank account linked to your trading account. If you add funds from an unlinked bank account, the amount will be refunded to you and will not be added to your trading account.
\n\n\nTo open a demat and trading account,
\n\n\nEnter your mobile number and the OTP sent to it.
Note: Make sure your Aadhaar is linked with a mobile number.
Enter your email ID and the email verification code.
\n\n\n\nEnter your PAN, and proceed to DigiLocker.
\n\n\n\nEnter your Aadhaar number, OTP, and DigiLocker Security PIN.
\n\n\n\nAllow us access to the selected documents in your DigiLocker.
\n\n\n\nEnter the KYC details and link the bank account.
Submit your selfie, and signature, and proceed to e-sign the form.
\n\n\n\nEnter your Aadhaar and OTP.
\n\nOnce you’ve successfully added all details, your demat and trading account will be activated within 3 working days. You will get your Account Opening Form (AOF) and Client Master Report (CMR) on your registered email ID.
\n\n\n\n\nThis may happen because:
\n\n\n\n\n Need help with a specific transaction?\n
\n \nTo check your withdrawal history through the app,
\n\n\n\nTo check your withdrawal history through the web,
\n\n\n\n\n Want to check your fund history?\n
\n \nYou can choose whether to receive quarterly or monthly auto-settlement only at the time of opening a demat and trading account with us.
\n\n\nTo cancel your withdrawal request through the app,
\n\n\n\nTo cancel your withdrawal request through the web,
\n\n\n\nNote:
\n\n\n\n\n Want to cancel a request?\n
\n \nTo modify it through the app,
\n\n\n\nTo modify it through the web,
\n\n\n\nNote:
\n\n\n\n\n Want to modify a request?\n
\n \nYou may have been unable to place a withdrawal request because you have already placed a withdrawal request for the day. This may also happen due to temporary technical issues.
\n\n\nYour withdrawal request may have been rejected because:
\n\n\n\nYour withdrawal request may have failed because:
\n\n\n\n\n Need help with a specific transaction?\n
\n \nYou may see your available funds as negative if:
\n\n\n\nNote: You can place a withdrawal request only once the remaining amount is settled and the balance becomes positive.
\n\n\n\n Need help with a specific transaction?\n
\n \nIn some cases, the funds available in your trading account may be a part of the stock margin or EPI. 80% of the amount you’ve received from selling shares on a given trading day will be reflected in your trading account immediately as EPI. This amount will be available to you for trading but cannot be withdrawn. You can withdraw this amount only on the next trading day.
\n\n\n\n Need help with a specific transaction?\n
\n \nYou are unable to withdraw funds instantly for shares you’ve sold today as we settle all balance trades and funds only at the end of the trading day. Due to this, funds are settled into your account one day after you’ve sold the shares.
\n\n\nYou can place one withdrawal request in a day.
\n\n\nNo, you will not be charged for withdrawing funds from your trading account.
\n\n\nOnce your trades are settled, you can withdraw the money for the shares you’ve sold today, only on the next trading day.
\n\n\nOnce your withdrawal request is processed, you will get the money in your bank account within 2 business days.
\n\n\n\n Need help with a specific transaction?\n
\n \nTo withdraw your funds through the app,
\n\n\n\nTo withdraw your funds through the web,
\n\n\n\nNote:
\n\n\n\nTo check your linked bank account on the app, tap your profile picture and tap Bank Account.
To check this on the web, click your profile picture>Trading Account>Bank Details.
To check your UCC, DP ID, or Demat Account Number on your app, tap your profile picture and tap Account Information.
To check this on the web, click your profile picture> Trading Account>Trading Segment.
No, SEBI regulations state that you can only add funds from the bank account linked to your trading account. If you add funds from an unlinked bank account, the amount will be refunded to you and will not be updated in your trading account.
\n\n\nThis may happen if another trader has accidentally used your UPI ID to add funds to their trading account.
Important: Do not share your login details with anyone to avoid fraudulent activity in your account.
Here are a few advantages of ETFs:
\n\n\n\nYou can trade ETFs like stocks as intraday or delivery during regular market hours.
\n\n\nStocks represent shares within individual companies, whereas ETFs offer shares of multiple companies within a packaged bundle.
\n\n\nIt is advisable not to invest in ASM and GSM stocks. These stocks have restrictions on intraday trading. We don’t allow you to trade in ASM and GSM stocks due to the high-risk nature of these stocks.
\n\n\n\nNote: There can be stocks which could come out from the ASM/GSM list. However, it requires due diligence to identify such stocks.
\n\n\nYou can add upto a 50 scrips to a watchlist.
\n\n\nYou can create up to 10 watchlists.
\n\n\nNo, you do not need to enter your TPIN to sell your intraday shares. This is because the shares you sell in intraday trading are not credited to your demat account when you buy them.
\n\n\nNo, once you have given your TPIN authorization, there won’t be a delay in executing your sell orders. However, if there is a delay at your end in giving your TPIN authorization there may be a delay in placing these sell orders. To ensure there is no such delay, you can do the TPIN authorization in advance.
\n\n\nNo, you don’t have to enter your TPIN every time you sell shares on a given trading day.
\n\n\n\nFor example, if you’ve entered your TPIN for a sale today, it is valid for that entire trading day. You will need to enter your TPIN again only if you’re selling shares after that day.
\n\n\nYour TPIN will be generated by the depository and will be sent by CDSL to your registered mobile number and email address. You can change your TPIN by visiting the CDSL website (www.cdslindia.com).
\n\n\nA TPIN (Transaction Personal Identification Number) is like an ATM PIN that you use to authorize selling shares from your demat account. It is generated by the depository and will be sent by CDSL to your registered mobile number and email address.
\n\n\n\nOnce generated, you can use the same TPIN to authorize all your sell orders. Also, if you’ve entered your TPIN for a sale today, it is valid for that entire trading day. You will need to enter your TPIN again only if you’re selling shares after that day.
\n\n\nYes, a trade made under BSE or NSE will be cleared by clearing corporations opted by the broker. This is called interoperability wherein a stock bought or sold on any exchange will be settled or cleared through a clearing corporation opted by the broker.
\n\n\n\nFor instance, a trade can be cleared by ICCL or NCL irrespective of the exchange on which the trade was executed.
\n\n\n\nNote:
\n\n\n\nThis may happen if you’ve entered the wrong passcode or OTP more than 3 times. Please try logging in again after 30 minutes. If you are still unable to do so, please reach out to us at customerhelpdesk@share.market
\n\n\nIf you have entered the wrong OTP, you can request another one by tapping Resend OTP on the login screen.
\n\n\n\nYou will receive the OTP on your registered mobile number.
\n\n\n\nNote: If you have not received the OTP within the given time, then request another.
\n\n\nStocks purchased or sold on a trading day are credited to or debited from your demat account one day after the trade date (excluding Saturdays, Sundays, and bank and exchange trading holidays).
\n\n\nTap Resend OTP on the login screen, enter the new OTP sent to your registered mobile number, and try logging in again.
\n\n\nThe losses you’ve made in intraday trading, are immediately debited from your trading account.
The profits you’ve made in intraday trading are credited to your trading account only on the next trading day. Hence, you can withdraw it or use it to trade only on the next trading day. However, you will be able to see these profits reflected in your portfolio on the same day itself.
Trade-to-Trade stocks (T2T) are stocks that can only be traded in delivery.
\n\n\n\nTrade-to-Trade stocks (T2T) are stocks that can only be traded in delivery. That is, you cannot trade these stocks on the same day.
\n\n\n\nImportant: You have to pay the full amount when buying a T2T stock and ensure you already have a delivery of it in your demat account before selling. As this takes T+1 day, you can only sell the stock on T+2 day.
\n\n\nThe scrip you’ve chosen may be unavailable for intraday because:
\n\n\n\nYou will see the margin available to you while you’re placing your intraday order. After you enter the quantity and price for the order, the screen will automatically show the margin you need to place the order.
\n\n\nMargin trading is borrowing money from a broker to purchase securities or equity shares. It is the difference between the total value of an investment and the loan amount.
Share.Market provides up to 5 times leverage (20 % margin) for intraday trading.
\n\n\nYes, you can sell stocks before buying them in intraday trading.
\n\n\n\nFor example, let’s assume a stock is trading at ₹200. If you expect the stock price to go down during that trading session, you will profit by selling them first and later buying them when the stock price goes down. If you sell the shares first at ₹200 and then buy them at ₹180, you will make a profit of ₹20. However, if the stock prices go against your expectations, you will make a loss.
\n\n\nMarket depth refers to the level of supply and demand for a particular security at different price levels in the market. It is a measure of the number of buy and sell orders that exist at various price levels for a particular share. The 5 best bid and ask prices with the quantity of available shares at those prices are shown in the market depth.
\n\n\nStocks that are considered to be highly liquid have a large number of buyers and sellers, which makes it easy for traders to execute trades quickly and at a fair price, without incurring too much of cost.
\n\n\nSlippage is the slight difference between the price at which you placed the order and the price at which the order was executed. This usually happens when the market prices keep changing quickly through the day.
\n\n\nCircuit limits are set to protect investors from speculation and extreme price movement. The upper circuits and lower circuits are the highest and lowest market prices a stock can trade at on a given trading day respectively.
\n\n\nYour market order will be executed when the exchange matches your order with a buyer or seller who is offering the best price available for your order.
\n\n\n\nNote:
\n\n\n\n\n Need help with an order?\n
\n \nA market order is an order to buy or sell shares at the current market price. A market order will be executed once it is matched with the relevant buyer or seller. However, please note that while the execution of the order is certain, market orders do not guarantee the price at which they will be executed.
\n\n\n\n
For example, you place a market order to buy shares of a company. While your order might be executed immediately, there’s no guarantee you will buy the stock at the last traded price when the order was placed. Instead, it may be bought at a price closer to it. This slippage is because the market is volatile and the last-traded price may have already changed by the time the order is executed.
In intraday trading, the traders benefit from changing market prices throughout the day. Intraday trading also offers high margins for trading.
\n\n\n\nHowever, just as profits can get magnified, losses can also be enormous depending on the market situation. This is because, in intraday trading, you will have to mandatorily close your position before the end of the trading day irrespective of the market price at that time.
\n\n\nIntraday is a trading type in which you both buy and sell the stocks on the same trading day. As share prices keep changing through the day, intraday traders try to make profits from these quick price movements.
\n\n\n\nIn intraday trading, you will have to mandatorily close or square off the position on the same day, before the market closes. If you do not close it yourself, we will automatically initiate the square off at the market price at 3:15 pm (cut-off time).
Note: The cut-off time may change depending on market conditions and as per RMS discretion.
Product types for trading are classified based on whether you intend to buy and sell stocks on the same day or hold them for a longer period. To help you achieve varied trading objectives, PhonePe has two product types:
\n\n\n"},{"id":"cG9zdDo0NjY=","uri":"/home/trading-investment/beginners-guide/basics-of-stock-market/what-is-swing-trading/","title":"What is swing trading?","description":"\nSwing trading is when shares are held for longer than a day but shorter than months or years. This is used to profit from price changes or ‘swings’. Traders who swing trade do not use intraday and tend to use both technical and fundamental analysis in their trades.
\n\n\nA bear market is a trend of a falling overall index for an extended period. Usually, if stock prices or indices have fallen at least 20% from the previous high, it is considered a bear market. A bear market is generally associated with the stock market indices such as NIFTY, SENSEX, etc., and their combined fall.
\n\n\nA bull market is a trend of rising stock prices or indices for an extended period. Usually, if the stock price or indices have risen at least 20% from the previous low, it is considered a bull market.
\n\n\nMarket capitalisation (market cap) is the market value of a company and indicates the size of the company. It is calculated by multiplying its share price by the number of outstanding shares. Companies are often divided into large-cap, mid-cap and small-cap based on market capitalisation.
\n\n\nStock prices usually depend on demand and supply, the growth prospects of a company, and the profitability of the company.
\n\n\nDepository participants act as mediators between depositories, traders, and investors. They are also referred to as agents of depositories. Depository participants are responsible for storing assets such as securities. A person cannot directly open a demat account with depositories and will need to go through depository participants.
\n\n\nA depository acts like a digital storage that helps in the safekeeping, reporting, and settlement of your securities. It holds your shares and facilitates the exchange of your securities. When you buy shares, they sit in a depositary account, usually referred to as the demat account. NSDL and CDSL are examples of depositories in India.
\n\n\nThe Securities and Exchange Board of India (SEBI), established under the SEBI Act 1992, is the principal regulatory authority for Indian stock exchanges. It’s responsible for:
\n\n\n\nA share is a part of the company’s equity that you can own. If you are a shareholder of a company, the percentage of the company you own is in proportion to the shares you have bought. You are also entitled to company profits.
\n\n\nOnce a company’s new shares have been sold in the primary market and get listed, those shares are traded on the secondary stock market. No new shares are issued and investors buy and sell the existing shares at market prices.
\n\n\nA company enters the primary market through an IPO by publicly registering itself on the stock exchange for the first time. Primary markets allow companies to raise long-term funds with the issue of new shares.
\n\n\nThe stock market is a platform that allows investors to trade exchange-listed shares along with other financial securities such as bonds, derivatives, and forex, during specific market timings.
\n\n\nHow do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas.,How do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas
\n\n\n\nHow do i Open a Bold Demat account from outside India and add Mone from bhamasHow do i Open a Bold Demat account from outside India and add Mone from bhamas
\n\n\n"},{"id":"cG9zdDoxNzQ=","uri":"/topic-1/subtopic-2/","title":"SubTopic 2","description":"How do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas.,How do i Open a Bold Demat account from outside India and add Mone from bhamas,How do i Open a Bold Demat account from outside India and add Mone from bhamas
\n\n\n\nHow do i Open a Bold Demat account from outside India and add Mone from bhamasHow do i Open a Bold Demat account from outside India and add Mone from bhamas
\n\n\n\n\nTo check this,
\n\n\nTap Portfolio>Holdings and select the relevant scrip.
\n\n\n\nScroll down and tap View Detailed Activity History.
\n\nNote: A contract note will be sent to your registered email ID if you have made a trade on that day.
\n\n\n\nTo download a contract note in the app or web,
\n\n\nTap the profile picture, tap Reports>Contract Note.
\n\n\n\nSelect the duration and tap View.
\n\n\n\nTap the download or email icon beside the PDF report generated.
\n\nNote: You can download contract notes for upto the previous 90 calendar days.
\n\n\nTo download a margin statement on your app,
\n\n\nTap the profile picture, tap Reports> Margin Statement.
\n\n\n\nSelect the duration and tap View.
\n\n\n\nTap the download or email icon beside the PDF report generated.
\n\nTo download a margin statement from the web,
\n\n\nClick the dropdown beside your profile picture.
\n\n\n\nClick Reports and click Margin Statements.
\n\n\n\nSelectthe duration and click View.
\n\n\n\nClick the download or email icon beside the PDF report generated.
\n\nNote: Currently, you can get your tradebook only on your registered email ID.
\n\n\n\nTo place a request for the tradebook on the app or web,
\n\n\nTap your profile picture, tap Reports>Tradebook.
\n\n\n\nSelect the duration and tap Get on Email.
\n\nNote: You can get tradebooks for upto 365 calendar days. For example, if you select a start date of 1st November 2023, you can generate reports for upto 31st October 2024.
\n\n\nNote: Currently, you can get your cash ledger only on your registered email ID.
To place a request for the cash ledger on the app or web,
Tap your profile picture, tap Reports>Cash Ledger.
\n\n\n\nSelect the duration and tap Get on Email.
\n\nNote: You can get cash ledgers for upto 365 calendar days. For example, if you select a start date of 1st November 2023, you can generate reports for upto 31st October 2024.
\n\n\nNote: Currently, you can get P&L reports only on your registered email ID.
\n\n\n\nTo place a request for the report on your app or web,
\n\n\nTap your profile picture and tap Reports>P&L Report.
\n\n\n\nSelect the duration for which you want the report and tap Get on Email.
\n\nNote: You can get P&L reports for upto 365 calendar days. For example, if you select a start date of 1st November 2023, you can generate reports for upto 31st October 2024.
\n\n\nYou will receive the dividends issued by the company on the dividend payout day. Once a company decides to issue dividends, it follows the below timeline:
\n\n\nDividend declaration date:This is the day that the company announces its intent to issue dividends. Usually, this is when the company’s AGM/EGM takes place, and the company’s board approves the dividend issue.
\n\n\n\nRecord date: The date the company decides to review the shareholder’s register to list all eligible shareholders for the dividend.
\n\n\n\nEx-dividend date: Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. As per the T+1 settlement, the ex-dividend date for stocks is now the same as the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment.
\n\n\n\nDividend payout date: This is the day that the dividends are paid to the shareholders listed in the company register.
\n\nNote: To collect a stock’s dividend you must own the stock at least 1 (one) trading day before the ex-dividend date or the shares should be on the books on the record date.
\n\n\n\nFor example, assuming no market holidays in this duration, company ABC declares a dividend of ₹10 on 1st February 2023. It declares the record date as 2nd March 2023 and the dividend payout date as 31st March 2023. In this case, the investor should note that the ex-dividend date will also be 2nd March 2023.
\n\n\nTo place a market order on your app or web,
\n\n\nTap Watchlist and search or select the stock.
\n\n\n\nTap Buy or Sell
\n\n\n\nSelect product type, tap the Order Type dropdown, and select Market Order.
\n\n\n\nSelect and enter Quantity or Amount from the dropdown
\n\n\n\nTap Place Order.
\n\nNote: Tap Advanced Options to set Validity or Disclosed Quantity
\n\n\nTo place your limit order on the app or web,
\n\n\nTap Watchlist and search or select the stock.
\n\n\n\nTap Buy or Sell.
\n\n\n\nSelect the product type, tap the Order Type dropdown, and select Limit Order.
\n\n\n\nEnter the Limit Price.
\n\n\n\nSelect and enter Quantity or Amount from the dropdown
\n\n\n\nTap Place Order.
\n\nNote: Tap Advanced Options to set Validity or Disclosed Quantity
\n\n\nTo modify a limit order on the app,
\n\n\nTap Portfolio>Orders and tap Open.
\n\n\n\nTap the order you want to modify and tap Modify.
\n\n\n\nMake relevant changes and tap Modify Order.
\n\nTo modify a limit order on the web,
\n\n\nClick Orders on the left side of your screen.
\n\n\n\nUnder the Open section, click the order you want to modify.
\n\n\n\nClick Modify Order, make your changes, and tap Modify Order.
\n\nTo cancel a limit order on the app,
\n\n\nTap Portfolio>Orders and tap Open.
\n\n\n\nTap the order you want to cancel and tap Cancel Order.
\n\nTo cancel a limit order on the web,
\n\n\nClick Portfolio>Orders.
\n\n\n\nClick the order you want to cancel.
\n\n\n\nClick Cancel Order.
\n\nNote: You can only cancel a limit order if it is in the Pending or Partially Filled status.
\n\n\nTo place your conditional limit order on the app or web,
\n\n\nTap Watchlist and search or select the stock.
\n\n\n\nTap Buy or Sell.
\n\n\n\nSelect the product type, tap the Order Type dropdown, and select Conditional Limit.
\n\n\n\nEnter the Trigger Price and Limit Price.
Note: Trigger Price<Limit Price for buy orders, and vice versa for the sell orders.
Select and enter Quantity or Amount from the dropdown.
\n\n\n\nTap Place Order.
\n\nNote: Tap Advanced Options to set Validity or Disclosed Quantity
\n\n\nTo add a new watchlist on your app,
\n\n\nTap Watchlist>>Create New Watchlist.
Enter a unique watchlist name and tap Create Now.
To do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown
\n\n\n\nClick Create New Watchlist.
\n\n\n\nEnter a unique watchlist name and click Save.
To add new scrips to your watchlist on the app,
\n\n\nTap Watchlist, select the relevant watchlist, and tap Add Scrip.
\n\n\n\nEnter the name of the scrip you’re looking for in the search bar.
\n\n\n\nSelect the scrip.
To do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown and select the relevant watchlist.
\n\n\n\nClick Add Stocks and enter the scrip name in the search bar.
\n\n\n\nSelect the scrip.
\n\nNote: You can add a scrip to multiple watchlists.
\n\n\n\n\nTo change the name of your watchlist on the app,
\n\n\nTap Watchlist, select the relevant watchlist and tap Edit List.
\n\n\n\nEnter a unique watchlist name and tap Save.
\n\nTo do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown and select the relevant watchlist.
\n\n\n\nClick Edit Watchlist.
\n\n\n\nEnter a unique watchlist name and tap Save.
\n\nTo sort the scrips in your watchlist on the app,
\n\n\nTap Watchlist, select the relevant watchlist, and tap .
\n\n\n\nSelect how you want to sort the list.
\n\nTo do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown and select the relevant watchlist.
\n\n\n\nClick >>Expand to close the chart view.
\n\n\n\nClick beside the sort type you want.
\n\nTo delete a scrip from your watchlist on the app,
\n\n\nTap Watchlist and select the relevant watchlist.
\n\n\n\nTap Edit Watchlist, tap beside the relevant scrip, and tap Save.
\n\n\n\n\n\nTo do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown and select the watchlist.
\n\n\n\nClick Edit Watchlist, click beside the relevant scrip, and click Save.
\n\nTo delete a watchlist on your app,
\n\n\nTap Watchlist>.
\n\n\n\nSelect the watchlist you want to delete and tap Delete.
\n\nTo do this on web,
\n\n\nClick Watchlist on the left side of your home page.
\n\n\n\nClick the watchlist dropdown and select the watchlist you want to delete.
\n\n\n\nClick Manage Watchlist>.
To invest in a WealthBasket,
\n\n\n\nTap WealthBasket>Explore all WealthBaskets.
\n\n\n\nSelect a WealthBasket and enter the investment amount.
\n\n\n\nTap Subscribe & Invest.
Note: If it’s a paid WealthBasket, pay the subscription fee.
Review the WealthBasket composition and execute the order.
\n\nOnce the WealthBasket is successfully purchased, you will get a confirmation notification within 5 to 10 minutes.
\n\n\nTo invest more money,
\n\n\nTap My Investments and select the relevant WealthBasket.
\n\n\n\nTap Invest More on the WealthBasket details page.
\n\nTo execute new recommendations,
\n\n\nGo to the Activity Log tab.
\n\n\n\nTap View Update beside the WealthBasket in which you have received new recommendations.
\n\n\n\nExecute the same.
\n\nImportant:
\n\n\n\nTo exit your WealthBasket,
\n\n\nGo to My Investments and select the WealthBasket that you want to exit from.
\n\n\n\nTap More Actions beside the Current Value option.
\n\n\n\nSelect Withdraw from the dropdown menu.
\n\n\n\nChoose Full Amount/Partial Amount in the Type of Withdrawal section.
\n\n\n\nTap Withdraw.
\n\nNote: You will have to authorize sell transactions using your TPIN if you haven’t enabled Demat Debit and Pledge Instruction (DDPI).
\n\n\nTo partially withdraw funds,
\n\n\nGo to My Investments and select the WealthBasket you want to make a partial withdrawal from.
\n\n\n\nTap More Actions tab located beside Current Value.
\n\n\n\nSelect Withdraw from the dropdown menu.
\n\n\n\nEnter the amount you wish to withdraw and tap Confirm.
\n\n\n\nTap Withdraw and authorize the trades using your TPIN if you have not enabled DDPI.
\n\nTo add another bank account,
\n\n\nTap your profile picture>Bank Account>Add New Bank Account.
\n\n\n\nSelect your bank from the dropdown and enter your details.
Note: Tick the checkbox if you want to make it your primary account and proceed.
Important: Intraday trading requires a good understanding of market trends, technical analysis, and risk management. Have a well-thought-out trading strategy beforehand.
\n\n\n\n| What is it? | Buying and selling stocks within the same trading day. |
| Why use it? | You can buy low and sell high or vice versa within the same day and aim to profit from short-term price movements. |
| Example | Buy 100 shares at ₹100 per share and sell them later in the day at ₹105 per share, making a profit of ₹500 (excluding brokerage and taxes). |
| Good to Know | Requires constant monitoring of market movements Higher risk compared to long-term investing |
To do this online,
\n\n\nTap the Contact Support button below.
\n\n\n\nTap Add nominee or Update nominee details.
\n\n\n\nDownload the form, fill it out digitally, and esign it using DigiLocker. Tap here to know how.
\n\n\n\nDownload the esigned form, tap your profile picture> Help Center> View Tickets.
\n\n\n\nSelect the ticket that says Add Nominee or Update Nominee Details, upload the esigned form and submit it.
\n\nAlternatively, you can also courier the esigned form to the below address:
\n\n\n\nPhonePe Wealth Broking Pvt Ltd, Office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103, India
\n\n\n\nNote:
\n\n\n\nImportant: Once you close your demat account with us you will not be able to open a new account
\n\n\n\nIf you don’t have any holdings,
\n\n\nTap the Contact Support button below.
\n\n\n\nDownload the form, fill it digitally, and esign it using DigiLocker. Tap here to know how.
\n\n\n\nDownload the esigned form, tap your profile picture> Help Center> View Tickets.
\n\n\n\nSelect the ticket that says Account Closure, upload the esigned form and submit it.
\n\nIf you have holdings,
\n\n\nTap the Contact Support button below.
\n\n\n\nDownload the account closure form and DIS form and fill it out digitally.
\n\n\n\nDownload the Client Master Report (CMR) of the broker you want to transfer your holdings to. Make sure the CMR is signed by the official of that broker.
\n\n\n\nSign on a blank paper and scan the signature.
\n\n\n\nMerge the account closure form, DIS form, your signature scan, and CMR copy, and esign it using DigiLocker. Tap here to know how.
\n\n\n\nDownload the esigned form, tap your profile picture> Help Center> View Tickets.
\n\n\n\nSelect the ticket that says Account Closure, upload the merged document and submit it.
\n\nAlternatively, you can also courier the esigned form to the below address:
\n\n\n\nPhonePe Wealth Broking Pvt Ltd, Office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103, India
\n\n\n\nOnce you’ve submitted the form, we’ll close your account within 3 working days.
\n\n\n\nNote: If the holding pattern or financial instruments under your Share.Market demat account and the demat account you’re transferring your shares to are the same, you don’t need to share the DIS form.
\n\n\nTo change your address or bank details,
\n\n\nTap the Contact Support button below.
\n\n\n\nDownload the form, fill it digitally, and esign it using DigiLocker. Tap here to know how.
\n\n\n\nDownload the esigned form, tap your profile picture> Help Center> View Tickets.
\n\n\n\nSelect the ticket that says Account Modification upload the esigned form and submit it.
\n\nAlternatively, you can also courier the esigned form to the below address:
\n\n\n\nPhonePe Wealth Broking Pvt Ltd, Office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103, India.
Note: To change your address, upload a copy of your Aadhaar/passport/voter ID/driving license/NREGA job card/NPR letter along with the form
To do this,
\n\n\nLogin to diglilocker.gov.in and click Drive>Documents>Upload File.
\n\n\n\nUpload the form and click Sign.
\n\n\n\nEnter your Aadhar number and click Get OTP.
\n\n\n\nEnter the OTP and click the box to tick for consent.
\n\n\n\nClick Submit and click the download icon to download the esigned document.
\n\nAny funds you add will reflect in your trading account immediately. In rare cases, it may take up to 2 minutes.
\n\n\nTo add funds through the app,
\n\n\nTap Portfolio>Funds>Add Money and enter the amount.
\n\n\n\nFor the first time, enter the UPI ID for the linked bank account.
\n\n\n\nSelect UPI or net banking from the Pay Via dropdown, and tap Add Money.
\n\n\n\nFor UPI, accept the transfer request from ‘ShareMarket’. If you are not redirected automatically, open your UPI app to accept it.
For net banking, you will be redirected to your bank’s website. Fill in the details and proceed.
To add funds through the web, click the Funds dropdown on the top right, click Deposit, and follow the same instructions.
Note: If you’re adding funds using a UPI app installed on a different device, validate the transfer request on that device.
This happens if your transfer fails or if you add funds from an unlinked bank account. Any money deducted will be refunded within 3 working days.
\n\n\n| UPI | Net Banking | |
| Daily Limit | Upto ₹2 lakhs | From ₹100 to upto ₹1 crore |
| Convenience Fee | NA | ₹10.62 (incl.GST) per transaction |
| Bank accounts | The primary bank account linked to your UPI IDs | The account registered with the trading account |
| Reflection of funds | Immediately. In rare cases, it may take up to 2 minutes | Immediately. In rare cases, it may take up to 2 minutes |
| Amount round off | Positive integers only. For example, while ₹42.5 is not allowed, you can add ₹42 or ₹43 | Positive integers only. |
Note:
\n\n\n\nThis may happen due to a technical error or an issue with your bank. In this case, please try adding the funds again after some time.
Note: Any money deducted from your bank account will be refunded within 3 working days.
If you used UPI, this may have happened because:
\n\n\n\nIf you used net banking, this may have happened because:
\n\n\n\nTo withdraw your funds through the app,
\n\n\nTap Portfolio>Funds and tap Withdraw.
\n\n\n\nCheck your withdrawal balance and tap Withdraw Money.
\n\n\n\nEnter the amount or select the checkbox to withdraw the complete balance and proceed
\n\nTo withdraw your funds through the web, click the dropdown beside Funds>Withdraw and follow similar instructions above.
\n\n\n\nNote:
\n\n\n\nOnce your withdrawal request is processed, you will get the money in your bank account within 2 business days.
\n\n\n![\"\"](\"/support/static/499059d1a745cbd57d1399c915eebb57/a0146/avatar_get_started.png){kind=avatar}
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