Type your query or browse the FAQ section.

You can reach out to us by dialing (+91)141-4920999 or (+91)141-4049663 to open an account. From 10:00 AM. until 6:00 PM, our account opening lines will be open.

To open a Bloom account, you'll need the following forms (print and sign):

Trading Account & Demat Account - Equity Segment Application Form (If it is not e-signed online). This will include commodity segment as well.
Form for Nomination - (In case you have opened your account online and would like to add a nominee to your trading and DEMAT account)

Note:

We used to ask you to sign and courier us the POA (Power of Attorney) form required to sell stocks/mutual funds from your Demat account. This is no longer required. Using the CDSL TPIN, you will now be able to place delivery sale instructions.

The following are the documentation needed to open an account offline for a resident:
- Photograph - One photograph of passport size. Paste it on the top of the KYC form and sign it.
- Pan Card - 1 self-attested copy of Pan Card (signature).
- Address Proof - 1 self-attested copy of the address proof — (Driving license, Voter ID, Passport, Aadhaar Card, Bank statement, etc. - Any 1)
- Income Proof (Optional - Required if you want to trade derivatives, currency, and commodities) - 1 self-attested copy — (latest salary slip, ITR, Form 16, 6-month bank Statement, etc. - Any 1) -Required for trading derivatives (FO, CDS, and MCX)
- Bank Proof - Personalized canceled check (with your name on it), bank statement, or bank passbook copy (With visible bank account number, MICR, and IFSC code)

Note;
You can register a Demat account for your child at Bloom as a guardian. You can buy equities in your name (using your trading/Demat account) and then transfer the assets to your child's Demat account off-market.
Once the minor has reached the age of maturity, they must submit a new KYC application form or KRA to us. They will also be required to submit a new account opening form that is filled out. Following that, we will remove the guardian's information from the minor's account. The account holder's signature will take the place of the guardian.

Regrettably, this will not be achievable. Your phone number and email address cannot be used to open a trading or DEMAT account for someone else.
If you already have an Bloom account and wish to register a Non-individual account, such as a HUF, Partnership, or Corporate account. In such a situation, you don't need to supply a new email and phone number; instead, you can use a phone number and email associated with another Bloom account.

As a guardian, you can create an account on behalf of your child.
When starting a minor Demat account at Bloom, keep the following things in mind:

- Fill out the account opening documents with the minor's guardian.
- Photographs of both the minor and the guardian should be included in the KYC form.
- Along with the minor's KYC paperwork, you must also provide the guardian's KYC documents (i.e., ID evidence and address proof).
- PAN card and birth certificate of the minor should be submitted.
- You should submit the guardian's KYC form if the guardian's KYC hasn't been registered.
- Address proof of minor (account holder)
- Bank proof of minor (account holder)
- AMC charges of Rs. 300/- (When opening an account for a minor, an upfront AMC is required.)
- For children's Demat accounts, there are no account opening fees.
- You should also include a handwritten letter or email confirmation from the guardian explaining why the minor's account is being opened.
Note;
You can register a Demat account for your child at Bloom as a guardian. You can buy equities in your name (using your trading/Demat account) and then transfer the assets to your child's Demat account off-market.
Once the minor has reached the age of maturity, they must submit a new KYC application form or KRA to us. They will also be required to submit a new account opening form that is filled out. Following that, we will remove the guardian's information from the minor's account. The account holder's signature will take the place of the guardian.

Your account opening application would have been put on hold if you hadn't received an email with your login credentials after 3 days.
The following are some plausible explanations:

- Your application isn't finished yet.
- Some of your documents have been turned down. A signature mismatch or a mismatch in supporting documents could lead to rejection. We'd send you an email to remind you to upload the missing papers so you can finish the account opening procedure as quickly as possible.
Please complete the process as instructed in the email, following which your application will be processed, your account will be opened in 24-48 hours, and the login credentials will be sent to your email.

You will not be able to register a Trading and Demat account in the name of a sole proprietorship because a 'Sole Proprietorship' is not a separate legal organization like a partnership or corporation.
You can, however, open a trading and Demat account in the name of the proprietor (person), which you can do online with Bloom.

We will process the paperwork within 48 working hours if we get the offline documents (nominee form, name change, address change, POA form, etc.) at our address and they are in order.

If your document is refused, you will receive an email message explaining why it was rejected and the steps you must take to have your application handled correctly

Yes, at Bloom, you can open a combined Demat account.

A shared Demat account with a maximum of three account holders, including the principal account holder, can be opened. The online approach cannot be used to open a combined Demat account. You must print, complete, and send the Demat application form to our office.
The Demat form should be filled out using the correspondence address of the first holder. The first holder will get all communication regarding the joint Demat account. Along with the documentation, the fiRs.t holder's bank proof must be submitted.
To comply with the KYC requirement, all joint holders must submit individual KYC forms with passport-sized pictures attached and signed across, as well as individual address documents and PAN copies.

You can also open a joint Demat account in the following cases:
- When physical shares are held in a combined Demat account.
- When you have a joint account with another broker and want to shut it and transfer your shares to Bloom.
Since Joint accounts are opened offline, offline account opening charges will be applicable.

Visually impaired or illiterate persons will have to open their accounts offline. To open an account offline, you can call 0141-4049663. You will be assigned a sales manager who will help you open your account.

The below points have to be kept in consideration when filling up the account opening forms -

1. The Left thumb impression of the client instead of signatures wherever mandated in the application forms and the supporting documentation.
2. Notary or Doctor's attestation required on the KYC page and supporting documents (Pan and address proof).
3. Documentation should be done by Bloom employee(s) and pick up agents. It cannot be done by Bloom partner(s)/partner pickup agents. If a partner is doing the same, the partner should complete the documentation.
4. The following comment has to be written on KYC page - "Client has signed in my presence and we have explained the account opening procedure to the client" along with the signature of the person who has done the documentation on behalf of the client and the name & signature of a witness to the documentation.
5. The following comment has to be written on the Risk Disclosure Document (RDD) - "Details explained to BO and he has signed in our presence" along with the signature of the person who has done the documentation on behalf of the client and the name & signature of a witness to the documentation. The implications of the RDD must be explained in the vernacular language as well, and the RDD must be signed in the client's vernacular language.

You can do so by calling our account opening assistance.
Our advisor will walk you through the Non-Individual account opening process.

If you have a newly opened equities trading account with us (i.e. less than 6 months), all we need from you is a completed and signed Commodity application form.

If your trading account is older than six months, we'll need the Commodity form, as well as proof of revenue and a Board resolution.

Supporting Documents
- A PAN copy of the company with the seal and signature of the authorized director/signatory.
- Proof of address in the company's name, with the seal and signature of an authorized director or signatory. (A certificate of incorporation, a copy of the most recent month's bank statement, a utility bill, a copy of the MCA, or a lease/rent agreement)
- Individual PAN copies with self-attestation for each Authorized Signatory/Director.
- Individual address proof with self-attestation for each Authorized Signatory/Director.
- Each full-time/executive director must fill out and sign an individual KYC form (the director must sign without a stamp on individual KYCs and supporting documents).
- A copy of the incorporation certificate with seal and signature, Authorized Signatory/Director.
- The Company's Memorandum of Association and Articles of Association (MOA & AOA) with approved Signatory/Director seal and signature on the first four pages. (In the event for information is missing from the MOM/AOA-required FORM-32 or DIR-12 copy provided by the company.)
- A copy of the Company's most recent two financial years.' balance sheet, signed and sealed by an authorized Signatory/Director. (A balance sheet must be filed every financial year.) If the firm is freshly founded, a Chartered Accountant's Net-worth Certificate with UDIN number and an Income Tax Declaration on company letterhead with authorized Signatory/Director seal and signature is required.
- For connection purposes, a bank account proof of the company (personalized canceled check with the company name printed on it), a bank statement, or a bank passbook copy (With visible bank account number, MICR, and IFSC code)
Account Opening Annexures
- The corporate letterhead should be used for the Board resolution and Annexures.
- On the specimen signatory position on the first page of the Board resolution, an authorized signatory/director signature is required.
- The second page of the Board resolution demands the seal and signature of any two directors at the specified location.
- The company's board of directors, together with approved signatory/director signatures.
- The company's most recent shareholding pattern, signed by an authorized signatory/director.
- Attach all of the signatory/pictures director's and signatures to Annexure A in the designated areas, as well as the corporate seal to the authorized signatory/signature. director's
Guidelines for applying for non-individual equity
- Page 3- In the Declaration column, affix the corporate seal and the signature of the Authorized Signatory/Director.
- Page 4 - At the bottom of the page, affix the current passport size photograph of each Authorized Signatory/Director of the company, as well as the seal and signature of the Authorized Signatory/Director. (The signature should be visible across the images.)
- On the (F) FiRs.t holder box of the full equity application, including POA, affix the business seal and signature of any authorized signatory/director.
Commodity application guidelines for non-individuals.
Attach the corporate seal and signature of any authorized signatory/director to the (F) First holder box on the Commodity application.

No, OCBs are not permitted to invest in Indian markets. Since September 16, 2003, OCBs have been de-recognized as an investor class in India.

An overseas corporate body is a business, partnership firm, society, or any other corporate body owned directly or indirectly by a Non-Resident Indian, and includes overseas trust in which Non-Resident Indians directly or indirectly control not less than 60% of the beneficial interest. They must have such an ownership stake in their name, not a nominee.

An OCB cannot register a new account in any name, according to the Foreign Exchange Management Regulations of 2003. The OCBs, on the other hand, can keep and sell shares purchased before November 29, 2001.

Yes, mutual funds can be purchased through corporate (business) accounts at Bloom.

A partnership account with Bloom can be opened by any partnership firm.

The account, however, cannot be started online and must be completed offline with Bloom.

Please contact us to open a partnership account with us. You will be guided through the procedure by our representative

To start a HUF account, we'll need the following documents. Please note that you cannot open a HUF account online; you must do so offline.
- Copy of a HUF PAN with the HUF stamp and signature flexible.
- A visible HUF seal and signature appear on the HUF address proof copy. (Address proof will only be accepted in the form of a HUF bank statement or a bank passbook copy containing the most recent transaction page.)
- Self-attestation of Karta PAN card copy
- Self-attested copy of Karta address proof
- PAN copy self-attested by Coparcener or Member
Self-attested proof copy of Coparcener or Member's address.
- Coparcener or Member address proof copy (self-attested)
- For mapping to the trading account, you'll need a HUF bank account proof, a personalized canceled cheque (with the HUF name printed on it), a bank statement, or a bank passbook copy (With full bank account number, MICR, and IFSC code).
We need any of the following in the name of HUF to activate F&O, currency derivatives, and commodities segments.

- Bank statement or passbook copy from the last six months.
- Copy of the most recent ITR acknowledgment.
- Holding statement from the DP.
- Certificate of net worth.
HUF Equity Application (HUF seal & signature) guidelines details.
- Page 3- Sign and seal the document with a clear HUF seal (Declaration column). Fill in the details as per HUF PAN and HUF address on page 3 (Only the HUF bank statement or bank passbook copy address should be typed in). Please should not include Karta's particular address proof information in the address section).
- Page 4 - Attach the most recent passport-size photos of Karta and Beneficiaries to the chosen location, as well as a clear HUF seal and signature at the bottom of the page.
- Page 6 - Stamp the F3 signature boxes with a clear HUF seal and signature.
- Page 7 - On the F4 signature box, place a clear HUF seal and your signature.
- Page 8 - On the F5 signature box, place a clear HUF seal and your signature.
- Page 8 - On the F5 signature box, place a clear HUF seal and your signature.
- Page 9 - On the F6 signature box, place a clear HUF seal and your signature.
- Page 11 - Sign and seal the F7 signature box with a clear HUF seal.
- Page 12 - Stamp the F8 and F9 signature boxes with a clear HUF seal and signature.
- Page 13 - Stamp the F10 and F11 signature boxes with a clear HUF seal and signature.
- Page 16 - Sign and seal the F12 signature box with a clear HUF seal.
- Page 17 - On the F13 (a) and F13 (b) signature boxes affix a clear HUF seal and signature.
- Page 18- Apply a clear HUF seal and signature to the F14 and F15 signature boxes on the page
POA
- Page 2 and 3 HUF seal, signature, and signatures of Beneficiaries or Members at the appropriate places.
- Only one coparcener or member signature is necessary if there is only one coparcener or member.
- If there are more than two beneficiaries or members, they should sign in the empty beneficiaries’ signature boxes as instructed above.
- If there are more than three beneficiaries or members, use the space between the signature boxes as described above.
- The POA pages should only be signed by significant beneficiaries or Members.
Application for a HUF Commodity

- Page 5 - On the F1 signature box, place a clear HUF seal and your signature.
(Commodity applications should not be signed by beneficiaries or Members.)
- Page 6 - On the F2 signature box, place a clear HUF seal and your signature.
- Page 7 - On the F3 signature box, place a clear HUF seal and your signature.
- Page 8 - Sign and seal the F4 and F5 signature boxes with a clear HUF seal.
- Page 9 - On the F6 signature box, place a clear HUF seal and your signature.
Letter of HUF Declaration
- Fill in the HUF's name.
- Members of the family or beneficiaries' names.
- Year of birth
- Gender Relationships with Karta Information must be completed.
- It's also necessary to have a HUF seal and signature.
Annexure
- It is necessary to have a HUF seal and signature.
- All important beneficiaries or members' names and signatures are required.
Once you've completed the needed forms, send an email to [email protected] with the clear scanned documents in PDF format as specified below, and the relevant team will examine and complete the review process.
- As a single PDF file, the supporting documentation lists.
- A single PDF file containing the HUF Equity Application was provided.
- As a single PDF file, the HUF declaration and annexures.
- A single PDF file was used to send the commodity application.

The following documents are required to open a Trading & Demat account for an LLP account with Bloom.

1. Completed copies of the Trading & Demat form and the Commodity Form, with passport-sized pictures of the authorized Signatories fastened to the photographs and signed across them.

2. Completed Annexures for an LLP (with the firm's seal affixed and the authorized partners' signatures).

3. A notary public's notarized copy of the LLP Agreement (investment clause must be mentioned). The seal and signature of the Authorized Signatory shall appear on the fiRs.t three pages of the LLP agreement (or on all pages if the agreement is shorter).

4. A duplicate of the PAN;

Copy of the firm's PAN card

Each Partner's PAN card (Attested by the respective partner, seal, and signature of the Authorized Signatory not required).

5. Address verification:

Address the Firm's Proof Copy.

All partners have a proof copy of their address (Attested by the respective partner, seals, and signature of the Authorized Signatory not required).

6. Bank Account Proof (Example copy of canceled check leaf/Bank Statement/Bank Passbook/Bank Letter).
7. A copy of the firm's balance sheet for the previous two financial years.* (to be submitted every year) A net worth certificate from CA is required if the company is newly founded. (On all pages of the balance sheet, the Authorized Signatory's seal and signature should be visible.)

8. Proof of income, which could include any of the following:

- Bank statement/passbook for the partnership accounts for the previous six months.
- Profit and loss statement from the most recent audit.
- Acknowledgment of ITR (Income Tax Return)
- A net worth certificate from a Chartered Accountant and an Income Tax Return Declaration are necessary if the company is freshly registered. A declaration of Income Tax Returns must be given if the return has not been filed.
9. A properly filled-out Board resolution.

10. A copy of the LLP Firm's Certificate of Registration (Only for Registered LLP Firms) (Investment clause must be mentioned).

11. Attested by a partner, the latest percentage interest of each partner/shareholding in the Partnership firm.

FATCA Declaration is number 12 on the list.

13. Each partner must fill out and sign their KYC (individual KYCs and supporting documents must be signed without the stamp).

14. Non-individual accounts require physical verification as part of the mandated IPV requirement for all brokers. To complete the IPV procedure, a client representative would need to visit an Bloom branch office, or a Bloom representative would need to visit the client's offices/residence.

15. If an individual is a shareholder of the applicant and owns more than 15% of the applicant's earnings, the individual must name themselves as an ultimate beneficiary and submit Annexure A.
16. If an entity is a shareholder of the applicant and owns more than 25% of the applicant's stock, capital, or earnings, the entity must identify itself as an ultimate beneficiary and submit Annexure A together with –

(a) Copies of the KYC documents of the Whole Time Director/ Individual Promoters of such an organization holding 25% or more; AND

(b) Shareholding pattern of the entity holding 25% or more (on company letterhead).

The senior management official may be regarded as a natural person if no natural person is recognized.

17. For account opening fees, make a check payable to "AC Agarwal Share Brokers Private Limited." The amount of the check is determined by the type of account you choose to start. Depending on the sort of account you wish to open, you'll need to write a check to open it. "AC Agarwal Share Brokers Private Limited" should be written on the check:

(a) Rs.250 for trading and DEMAT.

(a) Rs.300 for the opening of a commodity account

c) Rs.550 for trading, DEMAT, and commodity accounts

If a corporation is a partner, additional documents must be given when opening an LLP account.

A. A Board Resolution is necessary to verify the authorized signatories if the company is KYC registered.

B. If the company is not KYC registered, authorized directors shall sign the following forms and annexures with the company's stamp:

1. The company's KYC and the company's Promoters/Directors.

2. The company's pan card and proof of address

3. Directors' pan card and address proof with self-attestation (without the stamp)

4. The firm's MOA and AOA (The Company’s MOA should authorize the company to join the LLP as a partner)

5. Two-year balance sheet; if the company is freshly incorporated, a net worth certificate from a CA is required, as well as the ITR Declaration annexure.

6. Board resolution, current shareholding pattern, and director list Annexure, Annexure-A with samples signature and photograph (all annexures and board resolutions must be printed on firm letterhead)

7. Certificate of incorporation with the seal and signature of an authorized director.

Note:

- The Firm's Partnership Deed should allow it to trade in secondary markets.
- On the firm's letterhead, an authority letter in favor of managing partners should be written.
- The Managing Partner must sign all of the documents.
- The partnership firm's seal will be shown where signatures are taken.
- Provide a Balance Sheet after the closing of the current Financial Year in the event of a new partnership Firm.
- The bank proof should include the name of the bank, the branch address, the IFSC/MICR code, the account holder's name, and the account number.

An NRE or NRO bank account may be linked to your trading account. Currently, at Bloom, we support HDFC Bank and Axis Bank.

Based on the bank account linked, NRIs can trade in the following segments:

- You can only trade in the equities segment if you link an NRE account to your trading and Demat accounts.
- If you link an NRO account to your trading and Demat accounts, you'll need to do the following: A Custodial participant (CP) code allows you to trade exclusively in the equity or derivatives segments. Find out more.
- NRIs who have opened an account using the NRO non-PIS route can use Trading portals to invest in Mutual Funds.
- NRIs are not permitted to trade in India's currency or commodity markets.

To invest in the Indian stock markets, an NRI can open an NRO or NRE savings account.


An NRO account must be linked to the trading and Demat account to trade futures and options.

External Account for Non-Residents (NRE):
An NRE account is a bank account that allows you to repatriate both the principal and interest generated. You can transfer foreign cash from your overseas bank account to your NRE account, where it will be converted to rupees. The funds in your NRE account can be converted to dollars and transferred back to your foreign account, together with any interest earned. Reparability refers to the ability of money to be relocated from a foreign country to the investor's native country.

Non-resident Ordinary Account (NRO): This account is for non-residents who do not live in the United States.

Money cannot be transferred from an NRO account to an NRE account, which is the main distinction. Money that has been transferred from an NRE account to an NRO account cannot be returned to the NRE account. Reparability refers to the ability of money to be transferred from a foreign country to the investor's native country.

Repatriation is restricted by the NRO. The principal and interest from a non-resident ordinary account (NRO) can only be repatriated up to $1 million per year. The accountant must be linked to your trading account to trade futures and options.

The Reserve Bank of India's Portfolio Investment Scheme (PIS) allows NRIs to buy and sell shares in Indian companies on stock exchanges.

The PIS letter can be obtained from the bank where you opened your NRI/NRO account. The NRI must apply for the PIS approval letter at a bank that has been authorized by the RBI to administer the PIS.

All PIS route stock transactions are processed through a specific bank branch. The NRI/PIO must apply to a bank's designated branch that specializes in Portfolio Investments.

Equity deliveries, as well as futures and options, are available to NRIs. The NRI customer must, however, choose a custodian and obtain a 'Custodian Participant' (CP) code to trade futures and options.

ORBIS and Bloom have partnered to provide correctional services. If an NRI client contacts us, we will assist them in obtaining a Custodian Participant code.

NRIs can invest in mutual funds through Bloom, but only as NON-PIS customers. (The USA and Canada NRIs are not allowed to invest in Mutual funds)

Intraday dealing in stocks and equities is prohibited. Trading in currencies or commodities is also prohibited. Intraday trading on futures and options contracts, on the other hand, is permitted. (Only through the use of CP code)

Other points to consider:
- You can only trade in the Equity sector if you map an NRE account. If you're mapping an NRE account, you won't be able to trade in the futures and options segments.
- You can trade in the equities or derivative segments by mapping an NRO account (Futures or Options)
- You can also map both NRE and NRO accounts; in this case, you will need to submit two applications for account opening.

The following documents are necessary to convert your NRO-PIS account to an NRO-NON PIS account:

1. Add the existing details from the 'NRO-PIS account' to the new details as 'NRO-NON PIS' and sign in the fiRs.t holder box on the Account Modification form.
2. Tariff sheet - Sign in the appropriate box.
You must submit a soft copy of the completed forms to your registered email address.

Note:

Do not proceed with any transactions until we have confirmed that the process has been completed. The procedure of updating the account status may take 5-6 business days.

If there are any differences, please review your holdings and change the purchase averages. Please see this article for instructions on how to update your buy averages.

There is no need to keep the PIS bank account after the conversion; you can advise the bank to close it.

Trading will be identical to that of a traditional resident account. You'll be able to trade and transfer money directly.

For non-PIS accounts, the brokerage is 0.5 percent or Rs.100/- each executed order (whichever is lower).

Yes, at Bloom, you can convert your existing resident individual account into an NRI-NRO trading and DEMAT account. However, you will not be able to convert your resident individual account to an NRI-NRE account.

Transfer your holdings to another residential account, close your resident account, and open a new NRI (NRE) account as an alternative to converting your resident individual account to an NRI account. (It is not possible to transfer shares from a resident account to an NRI (NRE) account.)

An NRE account is a bank account that allows you to repatriate both the principal and interest generated. Repatriation is restricted by an NRO.

Note: To trade futures and options, you must have an NRO account linked to your trading account.

Documents required to convert a resident account to a non-resident account –
- Account Modification Form - To change the CDSL's bank information and overseas address.
- FEMA declaration copy
- Form for FATCA Declaration
- P.O. Box Declaration - This is just for residents of the UAE countries.
- Trading Form for terminating a resident trading account
- Application for a job in trading
- Notarized copy of PAN card* Notarized copy of - - Overseas address proof* – Copy of Driving License/Foreign Passport/Utility Bills/Bank Statement (within the last two months)/Notarized copy of rent agreement/Leave & License agreement/Sale Deed
- In the event of an Indian passport, a notarized copy of a valid passport* with India as the country of birth is required, as well as a copy of a valid visa.
- In the case of a foreign passport, a notarized copy of the valid passport* and a copy of the PIO/OCI acquired.
- Account Verification canceled cheque leaf of your NRO savings bank account).
- To confirm all of the information entered in the application, fill out the Client Details form.
Identification of the nominee (In case you have added a nominee)
Note: A copy of the NRI's PAN card, passport, and evidence of foreign address must be notarized by the Indian Embassy or another competent authority in the country where the NRI resides, such as a Consulate General / Notary Public / Any Court / Magistrate / Judge / Local Banker.

Your mutual fund investments with Bloom will be transferred to the NRO-non PIS account when you convert your existing account.

Yes, NRIs who have linked a Custodial participant code (CP) to their NRO account can trade futures and options (but not currency).
To see their F&O responsibilities, an NRI client must refer to the margin statement. A contract note produced by Bloom will not include the obligations. They will be unable to trade in the equities market with the same account.
Note:
- For futures and options, the brokerage fee is Rs.100 per order.
- When obtaining margins, NRI clients cannot pledge their holdings.
- The same account cannot be used by an NRI client to trade in the equity section

Daily the Reserve Bank of India monitors NRIs' investment positions in listed Indian companies, as reported by approved banks.

When the overall holdings of NRIs under the scheme fall below the sectorial. The Reserve Bank will send a notification (Caution List) to all designated bank branches informing them that any purchases of shares in a specific Indian business will require prior Reserve Bank permission.

The Reserve Bank places a company on the Ban List after NRI shareholding reaches the overall cap level. No NRI can buy shares in a firm that has been placed on the Ban List under the Portfolio Investment plan once it has been placed on the list.
Foreign Investment Limit Monitoring Red Flag/Caution List and Breach List are also published by the Depositories (NSDL and CDSL).

If you're only going to be gone for a few months, you can keep using your trading account because it doesn't change your status to Non-Resident Indian (NRI).

If you're going to be away for more than six months, you'll need to alter your account to an NRI account.

Let's say someone leaves India for work, business, or any other reason that shows he intends to stay outside the country for an extended period. In that situation, he ceases to be a resident of India on the day he departs.
It is the clients' responsibility to report their residency status in both circumstances. You have the option of converting your existing Trading & DEMAT account to an NRO account or closing your resident account and opening a new NRI account.

Yes, NRIs are permitted to open a joint account.

The PIS and trading accounts would be in the name of the fiRs.t account holder. The second holder must likewise be a non-resident alien and must provide the KYC paperwork, as well as FEMA declarations and FATCA.

No, NRIs are not permitted to trade intraday or in MCX commodity futures.

The following documents are necessary to convert your NRE/NRO account to a resident trading and Demat account:
Account modification form Required to update the bank and address details of your Demat account
Trading account closure form Required for closing the NRI trading account (2 copies if you're holdings both NRE and NRO accounts)
Trading application form Required for opening a resident trading account
Photographs One. Paste on the KYC form and sign across it.
PAN card 1 copy, self-attested
Address proof 1 copy, self-attested - (Driving License, Voter ID, Passport, Aadhaar Card, Bank statement, etc. -Any 1)
Income proof 1 copy, self-attested - (Latest salary slip, ITR, Form 16, 6-month bank Statement, etc. - Any 1) -Needed for derivatives trading (FO, CDS, and MCX)
Bank proof Personalized cancelled (name printed on it) or bank statement or bank passbook copy (With visible bank account number, MICR, and IFSC code)

Note: Only one account, either NRE or NRO, can be converted to a resident account. We will execute a closure cum transfer for the second account because a brokerage firm cannot open multiple resident trading accounts with identical PAN details.

Dividends will be credited to either your NRO or NRE account, depending on which one you have linked to your DEMAT account. To learn more about the differences and benefits of NRE and NRO accounts, read this article.

If you currently have an NRE account linked, you won't need to open an NRO account to get dividends, and vice versa.

The RTA is responsible for crediting the dividend (Registrar and Transfer Agents). It's possible that they won't be able to credit the dividend to your NRE account in some situations. A check would be issued to your registered address in such circumstances.
Both NRE and NRO accounts will be translated to separate DEMAT accounts in cases where you have both. So, depending on which DEMAT account you hold the dividend-paying stock in, and the bank account linked to it, either NRE or NRO will receive the dividend credit.

If you want to change your contact details in your trading account you need to send us a duly filled modification form to your nearest AC Agarwal Office.

You can find the modification form at https://www.acagarwal.com/download.php

If you want to change your bank details in your trading account you need to send us a duly filled modification form to your nearest AC Agarwal Office. You will also have to attach a canceled cheque (with your name on it) along with the form.

You can find the modification form at https://www.acagarwal.com/download.php

You must update your signature on Bloom's database if your signature has changed. The steps to accomplish so are as follows:

1. Fill out the account modification form and print it. Under details, put 'Change of signature,' specify the 'Type of change' as Modification, then sign using your old signature in the 'Existing details' section and your new signature in the 'New details' section. Also, sign your new signature inside the 'F' box.
2. Complete the KYC form. Use your new signature across the form, as well as across your connected photo.
3. Obtain a letter from your bank acknowledging your signature change. The banker's seal and signature, as well as your new signature, must be included in the letter. The format of a banker letter is shown below.
4. Send the above documents, as well as a photocopy of your PAN card and address proof, to the following address, both of which must be self-attested with your new signature.
5. The adjustment will cost you Rs.25 plus GST.

A private limited company's address must be changed using the following documents:


- Non-individual KYC Form with firm seal and authorized partner signature in the declaration box, and the latest passport size photograph of each authorized Signatories/Directors of the company on the 2nd page, along with company seal and authorized director signature at the bottom of the page. (The signature should be visible across the images.)

- The company's most recent address proof, complete with seal and authorized director signature. (Incorporation certificate, most recent month's bank statement, utility bill, or lease/rent agreement)

- Account modification letter with seal and authorized signatory/director signature at the specified location.
- Resolution of the Board Updated address on the fiRs.t sheet, and any two director seals and signatures on the second page at the prescribed location.
Note: Modification charges are Rs.25 + GST

For an LLP's address to be changed, the following documents are required:

- Non-individual KYC Form with firm seal and authorized partner signature on the declaration box, and affix the current passport size photograph of each Authorized Signatories/Partners of the Firm on the second page, along with firm seal and authorized partner signature at the bottom of the page. (The signature should be across the images)
- The firm's updated address proof with seal and authorized partner signature. (Registration certificate, bank statement copy from the previous month, utility bill, or lease/rent agreement)
- Account modification letter with seal and authorized signatory/director signature at the specified location.
- Resolution of the Board Updated address on the fiRs.t sheet, and any two partners' seal and signature on the second page at the authorized location.
Note: Modification charges are Rs.25 + GST

To process an address change for a Partnership firm, the following documents are required:

1. Non-individual KYC Form with firm seal and authorized partner signature in declaration box, and on the second page, affix the most recent passport size photograph of each authorized signatory/partner of the firm, along with firm seal and authorized partner signature at bottom of the page. (The signature should be visible across the images.)
2. The firm's updated address proof, which includes a seal and the signature of an authorized partner. (Registration certificate, bank statement copy from the previous month, utility bill, or lease/rent agreement)
3. Account modification letter with seal and signature of authorized signatory/partner at the specified location.
4. On the fiRs.t page of the authority letter, supply the revised address, and on the second page, affix a firm seal, and each partner must sign in the designated area.
5. Modification fees are Rs.25 plus GST.

To add money through UPI, you need to select the registered bank account which is available on your UPI. You will enter your UPI ID and you will receive a confirmation message on your UPI app. Once you confirm it, the payment will be done and it will be transferred to your trading account.

You simply need to send us the common KYC form along with new updated bank proof, in order to update the same in your trading account.

• For IMPS/NEFT/RTGS transfers, the maximum amount is decided by your bank.
• For payment gateway transfers there are no maximum limits.
There is no restriction on the amount of money that can be kept in your trading account.

Funds from stock holdings sold, and intraday profits get added to the withdrawal balance after 2 days. F&O profits and funds from F&O positions exited will get added to the withdrawal balance after 1 day. This is because exchanges in India follow a rolling settlement cycle. Since for commodity, it is in 1 day, you can request for the payout from commodity on next day only.

The settlement cycle for F&O is T+1 days. This implies that when you make profits, it will be realized on the T+1th day.
Due to this, if you take an F&O position & make profits, we will not consider these profits while reporting margins to the exchanges, since the profits are realized on T+1. These profits will not be unencumbered balance on that day, and thus won't be considered as available margin for trading in F&O.

The Account Maintenance Charge (formerly known as the Annual Maintenance Charge) is the fee you pay to keep your DEMAT account with Bloom up to date.

For your trading and commodity accounts, there is no account maintenance charge (AMC).

The annual maintenance fee for a DEMAT account at Bloom is:

Individuals, HUFs, NRIs, and partnership firms – Rs. 250 + 18% GST
Corporates, i.e. LLPs and private & public companies- Rs.1000+185 GST
For IL&FS DEMAT (accounts opened before 15th Sep 2015) – Rs.400 + 18%GST
Note: These mentioned charges are annual.

The cost of creating an online account with Bloom for Trading and Demat is Rs.200. Please see this article for instructions on how to open an account online.

If you want to trade commodities derivatives through MCX, you can do so after you've opened your Trading & Demat account by enabling the Commodity section from Trading portals.
The charge for activating the commodity account is Rs..100, which will be deducted from your ledger.

Note:

- You will not be charged for enabling the commodities section via Trading portals if you have already paid for it but have not enabled it or signed up for it.
- If everything is in place, it takes 24-48 hours to activate the commodity section.

No, you do not need to retain a minimum balance in your Bloom account to keep it active.

If you do not trade in any of the categories for 12 months, your account will be considered inactive or dormant, and you may be asked to renew your KYC.

You will be charged taxes in addition to brokerage whenever you make a trade (in any segment), as per government regulations.

The following are the taxes and fees:

Transaction tax on securities and commodities: A tax levied by the government on transactions on exchanges. When trading equities delivery, the charges are as follows on both the purchase and sell sides. When trading intraday or on futures and options, only the selling side is charged.
STT/CTT can be a lot more than the brokerage we charge while trading at Bloom. Its critical must maintains and place transactions properly.

For stock delivery, the STT is 0.1 percent on both purchase and sale.

On the sell-side, STT for stock intraday is 0.025 percent.

On the sell side, STT for equities futures is 0.01 percent.

On the sale side, STT for stock options is 0.05 percent (on premium)

On the sell side, CTT for commodity futures is 0.01 percent (Non-Agro)

On the sell side, CTT for commodity options is 0.05 percent.
Note that the STT/CTT will be rounded up to the nearest rupee.

Charges for exchange transactions:

0.00345 percent of turnover on the NSE, 0.00345 percent of turnover on the BSE.

0.002% of turnover is in equity futures (NSE)

0.053 percent of premium turnover comes from equity options (NSE)

Currency futures have a turnover of 0.0009 percent on the NSE and 0.00022 percent on the BSE.

NSE 0.0007 percent of turnover, BSE 0.001 percent of turnover are the currency alternatives.

PEPPER - 0.00005 percent, CASTORS.EED - 0.0005 percent, RBDPMOLEIN - 0.001 percent | Group B: PEPPER - 0.00005 percent, CASTORS.EED - 0.0005 percent, RBDPMOLEIN - 0.001 percent

Options on commodities – 0

With effect from January 1, 2016, transaction charges in the XC, XD, XT, Z, and ZP categories on the BSE are Rs.10,000 per crore (i.e. 0.1 percent). (As of December 1, 2017, the XC and XD groups have been merged into a new group X.) On the BSE, transaction costs in the SS and ST groups are Rs.1,00,000 per crore (or 1% of overall sales).

As instructed in this circular, all EQ series scripts on the NSE that are not in the Nifty 50, Nifty Next 50, GSM category, or Debt ETFs are charged at Rs.275 per crore until September 30, 2021.

GST (goods and services tax): 18% on brokerage + transaction fees

Depending on your state of domicile, you may be taxed GST in the Central, State, or Union Territory. The GST charge %, on the other hand, will remain constant.

The SEBI levies a fee of Rs.10 per crore (of turnover)

Duty on stamps:
On the buy-side, 0.015 percent or Rs.1500 per crore is delivered.
Intraday equity: 0.003% or Rs.300/crore on the buy-side
0.002 percent or Rs.200/crore on the purchase side for equity futures
On the buy-side, 0.003 percent or Rs.300/crore is available

Depository Participant (DP) charges are imposed by CDSL (depository) anytime you sell shares from your DEMAT account. It's comparable to how exchanges and brokers charge transaction fees and commissions.

For equities sold from your holdings, the Depository (CDSL) and the Depository Participant (ACA Broking Ltd) charge Rs.13.5 (+ 18 percent GST) each day per scrip (stock). On the day you place your sell order, the stock will be moved out of your DEMAT account.

Consider the following scenario:

The total relevant DP charges for that script (stock) for the day will be Rs.13.5 + 18 percent GST if you sell 50 shares of X in the morning and 50 shares of X in the afternoon.

Because multiple scripts are being sold, the total relevant DP costs for the day will be Rs.13.5 + Rs.13.5 = Rs.27 + 18 percent GST if you sell 50 shares of X in the morning and 50 shares of Y in the afternoon.

The following are the fees for currency futures and options:

Charges Currency Futures Currency Options
Brokerage 0.03% or Rs.20/trade whichever is lower 0.03% or Rs.20/trade whichever is lower
STT/CTT No STT No STT
Transaction charges NSE: 0.0009%. BSE: 0.00022% NSE: 0.0007%. BSE: 0.001%
GST 18% on (brokerage + transaction charges) 18% on (brokerage + transaction charges)
SEBI CHARGES Rs.10 / crore Rs.10 / crore

If you don't have access to the email address or phone number associated with your Bloom account and want to trade with them again, please submit a ticket using the form below. After verifying your credentials, our experts will walk you through the procedure (PAN, Aadhaar, DOB, etc.).

You have the option of selecting one of the following categories:

Farmers/FPOs: If you are a farmer, a member of a farmers' cooperative, or a member of a Farmers Producers. Organization, this section is for you (FPOs).
Participants in the value chain (VCPs): Processors, commercial users such as Dal and Flour Millers, Importers, Exporters, Physical Market Traders., Stock Cash & Carry participants, Produces, SME/MSME & Wholesalers, and others who are not farmers/FPOs.
Others: If you want to trade on the MCX but don't fit into any of the aforementioned categories.

Every week, stockbrokers must deliver their clients a ledger statement and registration of securities. Your fund transactions for the period are detailed in the ledger statement, and your holdings are detailed in the register of securities.
The funds or securities listed in the 'Pending' field haven't been resolved yet. For example, suppose you purchased 100 Tata shares on March 5th and received this statement on March 6th. Because you are owed Tata but the stock market will only deliver it on T+2 days, it is considered unsettled and will appear in the 'Pending' section.

According to this NSE circular, your PAN must be connected to your Aadhaar by March 31, 2022.

PANs that are not linked to Aadhaar will be regarded as invalid for trading in the Securities Market as of April 1, 2022. As a result, it's best to get the PAN - Aadhaar seeding done before the deadline.

There are two ways to link your Aadhaar to your PAN if you haven't already:
- Online from the Income-tax portal
- Alternatively, you can send an SMS to 567678 or 56161 to link or check the status:

Type a message in the following format:

UIDPAN <12 digit Aadhaar> <10 digit PAN>

Send the message to either 567678 or 56161 from your registered mobile number

If the information provided is correct, the Aadhaar will be linked to PAN successfully

Each client who has completed the KYC process is given a unique identification number. The CKYC number, also known as the Central KYC number, is a 14-digit number that is connected to a client's ID proof, which is securely recorded in an electronic format.

To update the New PAN Number in Bloom records, we need the following papers in hard form and self-attested:

1) Sign the account amendment form in the F (First holder) box.

2) KYC page - Attach the most recent passport-size photos, sign across the photo in the F1 box, then sign in the F2 box.
3) Self-attested photocopy of address evidence

4) Signature on a photocopy of the new PAN.

5) The Income Tax Department's cancellation notice for the former PAN.

6) A self-attested letter from the client stating the cause for the cancellation of the old PAN, as well as the old and new PAN numbers.

Know Your Customer (KYC) is a financial services industry standard that determines a customer's identity as well as other characteristics such as income levels, business expectations, and so on, allowing both the customer and the firm to conduct business more easily.
Furthermore, it is a SEBI requirement that all clients who wish to trade in the securities market complete the KYC registration process, which the broker assists throughout the account opening process. All of the information is kept on file by the KYC registration agency (KRA).

You may check your KYC status by logging into CVL KRA, going to KYC inquiry, and entering your PAN to get your status.

Let's go over all of the KYC requirements:

When your KYC status has been correctly updated in the KRA agency, it will show as registered/approved.
If you've just opened an account with us, your KYC status will be marked as pending. Because it takes time to update, you will have to wait for 4-5 working days.

It's possible that your account is on hold or has been refused because your previous broker did not provide accurate information to the KRA agency, or because you uploaded incomplete paperwork during the account establishing process.

Note: If your account has been dormant for more than a year, the KYC must be changed in our records. To do so, follow the steps below.

Regulators require KYC, as previously stated, and if your account is not updated, it may be blocked.

The bank's and broker's KYC procedures are not the same. Brokerage firms must register with the KRA for KYC, whilst banks must register with the Central KYC Agency for CKYC.

Note:

KYC is only available to SEBI intermediates, whereas CKYC is available to everyone in the banking, financial services, and insurance (BFSI) industries.
The PAN number is used to identify KYC. CKYC, on the other hand, is identified by a 14-digit number (CKYC number).
The KYC is created/retrieved with us during the account opening procedure, and you do not need to go through any additional steps.

By sending a request letter from your employer, you can add your employer's email to your profile so that they receive your contract notes along with you. This request letter must be written on the Company's letterhead and include the Authorized Person's seal and signature.

No, continue to do transactions in a deceased person's Bloom account is not legal.

Even after the account holder's death, family or legal heirs of deceased clients may continue to conduct transactions in the account. Although it may appear to be a practical solution, it is not permitted by law. It could result in fines under the Indian Penal Code, which was enacted in 1860.

This limitation applies to all transactions in a deceased person's account, including market and off-market transactions such as gifts and DIS slips.

Instead, it is recommended that nominees and/or legal heirs of account holders notify us as soon as possible if an account holder passes away.

The account is frozen after we get the required information about the account holder's death and the process for transferring the securities to the nominees and/or legal heirs begins. This procedure could take up to 15 days to complete.

Please keep in mind that any discrepancies between the date on the death certificate and the record of transactions in the deceased's Bloom account may cause the transmission process to be delayed owing to extra examination. We may even be obligated to disclose such transactions to the appropriate authorities if any significant discrepancies are discovered. Please stay away from this at all costs.

Before the Supreme Court's ruling on September 27, 2018, we, as trading members, were required to collect Aadhar from clients by PMLA Rules and Exchange standards.
We would like to assure you that, in light of this recent judgment, we have removed all AADHAR numbers from our system for all of our clients who have provided us with AADHAR numbers. We do not keep any Aadhar numbers on file, and the only time we may have used your Aadhar information, such as your address, date of birth, and gender as if you provided your Aadhar as evidence of identification/address while registering an account.

So, even if you had previously linked your Aadhar to your trading/Demat account, there is no notion or mechanism for unlinking your Aadhar

With the same PAN, you can only open one trading and Demat account at Bloom.

You cannot be the primary account holder if you already have an account with us and want to register a new joint account. Only the secondary or tertiary account holder can be mapped with your PAN.

Even if you already have a Bloom account, you can register new trading and Demat accounts in the name of your company, partnership firm, LLP, or HUF because the PAN would be different.

You can find POA using this page https://www.acagarwal.com/download.php or you can alternatively contact us at 0141-4049663 or email us at [email protected].

Every time you sell shares from your portfolio, you must give your broker instructions in the form of a Delivery Instruction Slip (DIS). Because mailing a paper slip for each sell transaction is impractical, a POA is used to collect delivery instructions instead of a physical form.

If you sell from your holdings, the depositories now allow stockbrokers to obtain online DIS permission using a PIN and OTP (provided to the registered mobile number). You can use this approach to authorize your sell transactions if you revoke your POA.
This form, like the POA, must be physically collected. You can fill it out, sign it, and submit it to our headquarters.

Note:
Once we get the form, it may take up to 5 working days to process the request.
For the time being, POA revocation is only possible for residents. You will not be able to use the TPIN facility if you have a non-individual (i.e. HUF, company, or corporate) account until CDSL allows it.

You cannot close your Demat account while maintaining your trading account. At least one Demat account must be linked to the trading account. Even if you don't trade, you'll need a Demat account:

As open intraday positions can go into delivery if they are not closed before the end of the day, equity intraday positions can go into delivery. These shares must be transferred to your Demat account.
Starting in October 2019, all Stock F&O contracts will be settled physically, requiring stocks to be settled to a Demat account in the case of taking delivery positions and debited from the Demat account in the case of granting delivery positions. More information on the physical settlement of stock F&O contracts can be found here.


Note: If you have numerous Demat accounts linked to your trading account, you can close all of them as long as you only have one Demat account linked to your trading account.

You won't be able to add anyone else to your trading account. This is because only one person is permitted to have access to a single trading account.

Every week, stockbrokers must deliver their clients a ledger statement and registration of securities. Your fund transactions for the period are detailed in the ledger statement, and your holdings are detailed in the register of securities.
The funds or securities listed in the 'Pending' field haven't been resolved yet. For example, suppose you purchased 100 Tata shares on March 5th and received this statement on March 6th. Because you are owed Tata but the stock market will only deliver it on T+2 days, it is considered unsettled and will appear in the 'Pending' section.

A gift can be made in the form of cash, real estate, or moveable property. It's critical to comprehend the tax ramifications, make appropriate disclosures on your tax return, and keep track of your records.
In the hands of the gift's giver, there are tax implications.

The sender is not obligated to pay any tax on gifts since the Gift Tax Act (GTA) was repealed.

Capital Gains accrue when a Capital Asset is transferred, according to the Income Tax Act. Section 47, on the other hand, expressly excludes the term "gift" from the meaning of "transfer." As a result, the sender of a gift is exempt from paying income tax on the transaction.

In the hands of the gift recipient, there are tax implications.
On receiving the gift:

Under Section 56(2) of the Income Tax Act, a gift of movable property, such as shares, ETFs, mutual funds, jewelry, drawings, and so on, made without consideration and with a fair market value of more than INR 50,000 is taxable in the recipient's hands. Such income should be declared in the Income Tax Return under the heading 'Income from Other Sources,' and tax should be paid at slab rates.

Taxes on stock gifts are deductible in the following circumstances:
- Recipient of a present from a relative (including siblings, spouse, and lineal ascendants or descendants)
- On the occasion of a wedding, one individual receives a present.
- As a result of an inheritance, I received a gift.
Regarding the gift's sale:
The sale of shares, ETFs, mutual funds, and other assets acquired as a gift would be taxable as income from capital gains. The beneficiary must submit Form ITR-2 and pay tax at the appropriate rate.

The holding period would be calculated from the date of acquisition by the prior owner until the date of sale to ascertain the nature of Capital Gains, whether STCG or LTCG. To calculate capital gains, the previous owner's purchase price is used as the cost of the acquisition of the capital asset.
Because there is a potential of inspection by the tax department if the gift amount is large, the donor and recipient must keep suitable paperwork such as a gift deed to justify the legitimacy of the gift transaction.


*Note: The gift transaction will be entered at the closing price of the stock on the day the transfer of the stocks occurs at Bloom to calculate the P&L and purchase averages. The sender of the gift's holding will be closed at the stock's previous closing price, and the average price for the receiver of the shares will be the same previous closing price on the day the transfer is completed.

If you have inherited physical shares from a deceased person and want to Dematerialize them, you must contact the company's RTA (Registrar and Transfer Agency) and request that the name on the business records be changed to your name as it appears on your Demat account.

Note:


1. If a joint holder of a share dies, the surviving holder(s) can have the physical shares Dematerialized into their Demat account by submitting a notarized copy of the deceased holder's death certificate, the duly filled Transmission-cum-Dematerialization form, and the normal set of Dematerialization documents listed here.



3. If the shares you're trying to Dematerialize are on this CDSL list, you'll be able to send them for Dematerialization only when the name of the scrip is removed from the list.

Clearing Members of Beneficial Owner (clients) can submit off-market, on-market, inter-depository, and early pay-in debit instructions from their DEMAT account using CDSL's internet-based facility easiest (electronic access to securities information and execution of secured transactions). Furthermore, a subscriber to easiest has access to all of the services and benefits of easi.

You can transfer shares from one DEMAT account to another using CDSL easiest.

Your representative can pick up the DIS brochure from our headquarters on your behalf. The authorization letter must be downloaded, printed, and filled out. The letter must be carried by your representative, together with a completed and signed DIS request form.

If you need a second DIS booklet, please contact us. Annexure B must be completed (which you can find on the last page of the DIS booklet you presently have).

To fill out the DIS slip, simply follow the steps below:
- Name of the client: Enter the name as it appears in the Demat A/c.
- Specify the ISIN of the security that will be transferred. Check your transaction statement for confirmation. Per DIS, a maximum of 5 ISINs can be exchanged. If you want to transfer more than 5 ISINs, use several DIS.
- Name of the security to be transferred: Enter the name of the security to be transferred.
- Figure quantity: Indicate the figure quantity.
- Quantity expressed in words: Specify the quantity expressed in words.
- Once the DIS has been executed, we will fill in the instruction reference number.
- If you're transferring more than 5 scripts at once, please specify the number of DIS annexures attached to the slip.
- If you're selling shares off-market to a specific institution, please fill in the details.
- Specify the counter DP ID, Client ID details, and Counter BO name (Specify the account holder's name to whom securities are being transferred) in the appropriate columns, and check the depository option if CDSL or NSDL, as well as the Settlement details if BO-BO or BO-CM, CM-BO, CM-CM.
- On market transfer
- At the time of executing the DIS slip, we will fill in the execution date.
- The signature of the account holder must match the signature on file in the Bloom Demat account.

The name on the share certificate must match the name on the DEMAT account for shares to be Dematerialized. It is not possible to Dematerialize share certificates into a Joint Demat account if they are held by a single bearer.

If the shares are held jointly, they must be Dematerialized and transferred to a Joint Demat account with identical names as on the share certificate

Your Demat account with Bloom is kept at CDSL, which is a depository participant. Every transaction made in your Demat account will be notified to you through SMS and email by CDSL. You can keep a record of these notifications.

By filing a Dematerialization request to the issuer banker or financial intermediary, physical SGBs purchased through a bank or other financial intermediary can be converted to Demat form. To process your request, the bank/intermediary will upload the data to the RBI's e-Kuber platform.

A copy of your CMR (attested by the DP) will be required to process the Dematerialization request.
Note: If you acquired the SGB through a bank, you must contact the bank's Nodal branch.

Physical shares held in a joint account can only be Dematerialized into a joint Demat account in the name of the joint shareholders. You will not be able to convert it to a single holder Demat account.
Note that the names on the joint Demat account must match the names on the share certificates to Dematerialize jointly held shares.

When the order of names on the share certificate differs from the order of names on the joint Demat account, you must submit the transposition form along with the relevant papers for de-materialization.

Yes, you can link a bank account to which you have shared ownership. The technique is identical to that of linking a single-holder bank account.

No, SEBI requires that your trading account be linked to a bank account in your name.

The main bank account linked to your Bloom account is called a primary bank account. The primary bank account is linked to the bank evidence you submit when you open a Trading and DEMAT account.

Both depositing and withdrawing Money to and from your trading account are done through your primary bank account.
A secondary bank account is a bank account that you can link to your Bloom account. Only deposit Money to your trading account from the bank account mapped as a secondary bank account. It is not possible to withdraw Money to a secondary bank account.
Please keep in mind that you can link up to three bank accounts to your trading account, but only one will be recognized as primary, and the other two will be treated as secondary.

An additional bank account linked to your Bloom account is known as a secondary bank account. The secondary bank account is utilized to deposit funds into your trading account.

It is not feasible to transfer funds from your trading account to your secondary bank account.

You can link your trading account to numerous bank accounts, such as one primary bank account and two secondary bank accounts.

In most circumstances, an e-Mandate registration is completed within 2 to 5 working days. Sometimes your bank does not validate the registration, and the mandate remains in a pending position on Trading portals.

We are unable to estimate a timeline for successful verification because the bank must provide confirmation. In such circumstances, we follow up with the respective banks regularly through our channels.

No, you cannot transfer funds from your trading account to your mapped secondary bank account.


You can fund your trading account with Money from either your primary or secondary bank account linked to your Bloom account.
However, according to our internal regulation, withdrawals from your trading account can only be done to your primary bank account linked with us.

SIP stands for Systematic Investment Planning, and it is a method of investing that allows you to invest a set amount at regular intervals (weekly, monthly, quarterly, etc). Stocks can also be purchased using SIPs.

You won't have to worry about manually placing orders at regular intervals, once you've set up a SIP. If you have adequate cash in your trading account, the system will automatically place your orders
Please keep in mind that the money for your SIP is debited from your Trading account, so make sure they are available on the SIP day.

The SIP order may fail if the requisite funds are not available in your trading account on the given date.

You can use the e-Mandate facility to guarantee that your trading account has enough funds.

You can use the e-Mandate feature to have a certain quantity of money sent from your bank account to your trading account on a specific date.

You have till the 5th of the month to set a date. Because bank confirmation of the transfer can take a few days, you should plan your e-Mandate transaction a few days ahead of time.

One working day before your scheduled date, your bank account will be debited. One day before the payment is debited from your account, you will receive an SMS/email confirmation of the debit.

The maximum limit per day for mandates through e NACH is INR 1 lac. You will have to manually transfer more than INR 1 lac in a single day if you wish to transfer more than that.

Once your mandate has been granted, you can create a schedule to specify the exact amount to be debited and the day on which it should be paid. You can create as many schedules as you want as long as the total debt does not surpass the daily limitation.

To ensure that funds are available in your trading account on the selected transaction day, money is deducted from your bank account before the scheduled transaction day.

Because money does not appear in your trading account immediately, it must be debited from your bank account at least one working day in advance.

This is because the funds are debited from your bank account during banking hours, but NPCI credits our bank accounts and certifies the transaction at the end of the day.

Bloom currently does not charge for E-Mandate registrations or transactions. If a transaction fails due to a lack of money, your bank may levy a fee.

Your withdrawal request has been denied for the following reasons:

1. You may have requested a withdrawal for an amount more than your equity or commodities account's withdrawal balance.

For your request to be completed properly, you must provide a sum that is less than or equal to the amount visible in the balance of the withdrawal.

You won't be able to withdraw money from your Demat account if you sell stocks or generate intraday profits.

After two trading days, the funds from the sale are paid in your trading account (after one trading day in the case of F&O). Only the amounts that are settled and shown in your withdrawal balance will be available for withdrawal.

2. During the day, funds added to the trading account cannot be withdrawn on the same day. Only after balance reconciliation, which takes only one day, may you withdraw the Money.

Note that if you request an amount that is slightly higher than your withdrawal balance, your request will be executed, but you will receive less than you asked.

Funds added during the day are immediately available for trading. You can only withdraw the Money after one day since we need to execute a balance reconciliation at the end of the day.

Because Indian exchanges operate on a rolling settlement cycle, you will not be able to withdraw funds immediately if you close your holdings today.

Any equity-based trades, such as stock sales from Demat, BTST, or intraday, are settled on a T+2 basis. As a result, on T+2, the Money will be ready for withdrawal.

Because all F&O transactions are settled on a T+1 basis, money will be available for withdrawal on a T+1 basis. To learn more about the rolling settlement cycle, please read this article.

After the corresponding settlement cycle, the proceeds from the sale will be available in your Withdrawal balance.
Note that equity intraday earnings can be withdrawn after two days, whereas F&O intraday profits can be withdrawn after one day.

Your withdrawal request will be credited to your bank account within 24 hours of being processed. On all trading days, including Saturdays, withdrawals are processed

On Sundays (or public holidays), withdrawal requests take longer than 24 hours to process. Funds are credited within 24 hours on weekdays after equity withdrawal requests are processed at 8:30 p.m. (8 a.m. for commodities) on the day they are submitted.

Withdrawal requests are processed at 5 p.m. on Saturdays. Saturday payments may not appear on Trading portals; however, they will be updated and accessible for trading on Trading portals. By Monday EOD, these transfers will be reflected

The UPI payment option allows you to send funds from your mapped bank account to your mobile phone via a UPI (Google Pay, BHIM, etc.) app.

UPI is an instant means of payment, and funds will be transferred to your trading account as soon as the transaction is completed successfully.

If the UPI transaction fails and money is debited from your bank account, your bank should reverse the funds within 2-3 bank working days. Please contact your bank for more information.

This method was established by the NSE in 2015 to prevent self-trading by a client who has both buy and sell orders for the same scrip open at the same price.

If a client makes a counter order that matches the CO Stop-loss or Target orders, the position will be left hanging with no target or SL order.

Example:

1. If you buy a CO at market price (LTP is 100) with a stop loss of 99, you will make a profit (Both of these orders get placed at the exchange simultaneously). If the scrip falls below 99 before the first leg is executed, the SL order is triggered.

*Higher margins will not be banned if you do not have any F&O deals*
The amount of margin that can be used for F&O trading can be increased:

If you have to open in-the-money options positions four days before expiry (prior week Friday to expiry day),
If you have any open F&O positions that need to be physically settled or any out-of-the-money short options contracts, do it one day before expiry (Wednesday and Thursday of expiry week).
Physical settlement entails giving or receiving real delivery of the underlying stock. As a result, the needed margin rises in tandem with the contract value.

If you don't follow adequate risk management principles, buying options is by far the riskiest kind of trading. When you buy an option contract, you put your entire investment at risk. Depending on the moneyness, time value (theta), or any of the other elements that determine option prices, the option premium can quickly lose the majority of its value.

When purchasing options, you should never risk more than 2% of your trading money at any given time. If you're taking positions that are larger than this, you should set a stop-loss and stick to it.

You can use GTT to place a long-term stop-loss order for your option holdings exactly as you're buying them.
GTT stop-loss when buying options

For your order, you can choose any percentage as a stop-loss. If you set a 10% stop-loss and your option buy price is Rs. 80, the stop-loss would be triggered whenever the option price reaches Rs. 72. Because this is a limit stop-loss order, a sell order will be issued at Rs. 72. When using the order window to place a GTT stop-loss, the trigger and limit prices are the same.
Be careful to cancel the pending GTT stop-loss order if you exit this trade on your own (GTT Stop-loss not triggered).
Note: By default, all GTT stop-loss orders are limit orders. In the example above, if the GTT is triggered at 72, a selling Nifty 16000 CE order will be placed at 72. This may not be completed if the market changes quickly. If a stop-loss GTT order is triggered but not executed, you must place it again for the next trading day.

Starting September 1, 2020, all trades would require upfront margins, according to a circular from SEBI. The following are the results:

1. Proceeds from the sale of existing holdings can be used to fund new investments -

You can utilize up to 80% of the proceeds from the sale of your stock holdings to take new positions — other stocks or F&O bets — as soon as you exit them.

Maximum intraday leverages have been capped under the new peak margin regulation, and only 80% of credit from selling your holdings will be accessible for new trades. From T+1 day onwards, the complete credit will be available.
Important:


1. A margin penalty based on the new peak margin restrictions may be imposed if you sell your assets and then buy them back after using the sale profits in other trades.
2. In order to provide you with the benefit of being able to use the holdings sale credit right away, we are debiting shares on T day and paying the Exchange early. The shares will be in the Early payin account until the stocks are collected by the Clearing Corporation (T+2), during which time certain corporate action benefits will not be payable. As a result, if you want to be eligible for corporate activities such as buybacks, don't sell your shares and keep them in your account until the Record Date.
2. Using proceeds from the sale of T1 holdings -

You can sell your T1 holdings (stocks purchased the day before but not yet credited to your Demat) and utilize 80 percent of the proceeds to acquire new stocks for delivery, just like you can with your stock holdings. However, you will only be able to apply 60% of the selling price to F&O.

3. Intraday earnings can only be applied to new positions after they have been settled.
Intraday earnings will not appear in your trading portals balance until the exchange settles them. The Money are settled the following trading day for F&O and two trading days for equity. For example, if you buy stocks worth Rs 2 lacs on Monday and sell them for Rs 2.25 lacs the next day, Rs 2 lacs will be accessible for additional transactions instantly. On Wednesday, however, Rs 25 thousand will be available in your Trading portals funds.

In addition, if the T+1 (for F&O trades) or T+2 (for equity trades) day is a settlement holiday, the intraday profits will be available on the next trade settlement day.

4. You can only utilize option sale credit to buy options on the same trading day -

When you exit long/buy option positions or initiate new write/short option positions, the proceeds or credit of option premium can only be utilized for new long/buy option trades on the same trading day and within the same segment (proceeds from equities options cannot be used for currency or vice versa). Only from the next trading day onwards may you use these proceeds or option credit for any other form of trade.

You can utilize leverage to enter into buy sell transactions using an intraday (MIS/CO) order (up to 5 times the money in your account). Buy transactions for more money than you have in your account, and sell/short trades in which you can sell a stock without keeping it in your Demat account. Intraday deals, on the other hand, must be squared off by you on the same day. If you do not square off an intraday position, our system will try to exit it on your behalf according to the timings, which are usually around 3.20 pm every day.
However, in addition to the danger of losing money owing to leverage, every time you trade utilizing S/CO, you run the chance of not being able to square off your positions due to the stock hitting either the upper or lower circuit. On trades placed with leverage, you could wind up with a large overnight and auction risk.

If you have an open sell intraday trade and the stock hits the upper circuit, you will lose money.
If a stock reaches the upper circuit price, there will be no sellers and just buyers. As a result, you won't be able to buy back the stock you sold for intraday trading. As a result, this intraday transaction will become a delivery trade.
This stock will be transferred to the exchange if it was in your Demat account by chance. You'll wind up short delivering or defaulting on the sell trade if you don't have the shares. On T +3 (Deal date +3), the exchanges hold an auction to buy the shares on your behalf and deliver them to the buyer of your sell trade. Depending on the price at which the exchange resolves the trade, this could result in an auction penalty. Additionally, until the auction is completed, 120 % of the closing price on the date of the sell trade will be blocked in your account with the narration "Short delivery margin blocked for sale of scrip name."

If you have an open buy intraday position and the stock falls below the lower circuit, you will lose money.
If a stock reaches the lower circuit, there will be no buyers and only sellers. As a result, you won't be able to sell the shares you bought for intraday trading.
This stock will be delivered to your Demat account if you have sufficient funds in your trading account by the next trading day. If you do not have the required funds, our risk management system will sell the stock on the next trading day to the extent that you do not have money.

When you exit long/buy option positions or initiate new write/short option positions, the proceeds or credit of option premium can only be utilized for new long/buy option trades on the same trading day and within the same segment (proceeds from equities options cannot be used for currency or vice versa).

From the next trading day onwards, you can use the proceeds or option credit for all other sorts of deals.

Let's look at some examples to help you understand.
Case No. 1:

You received a Rs 1 lac premium for selling Options. Assuming you have an additional $50,000 in your account, you bought two lots of NIFTY FUT in NRML the next day for $120,000. Because the premium has not yet been realized, we will not be able to disclose the option premium value when reporting your margins to the exchange. As a result, a margin penalty of 70,000 will be applied on the deficiency (1.2 lacs - 50k)

Case No. 2 -

You received a Rs 1 lac premium for selling Options. Let's say you wish to acquire 100 shares of Reliance the next day for $1,000. After the appropriate haircut, you will be able to purchase the quantity. Assume that the Haircut percent on dependency is 12.5%. As a result, you will be able to purchase 87 Reliance shares (1,00,000 - 12.5 percent / 1000).

If you sell stocks from your Demat or T1 (BTST), only 80% credit against the sale amount will be available for further trades in the same/other segments on the selling day, according to SEBI's new peak margin requirements. The remaining 20% credit will be held in Trading portals's "delivery margin" field until the next trading day.

The following table summarizes the key changes that occurred as a result of the implementation of the upfront and peak margin norms:
Action Before implementation of the peak & upfront margin rules From 1st December
Stocks sold from Demat holdings Proceeds can be used to purchase further equities or to engage in F&O trading. 80% of the proceeds can be used to buy equities or trade F&O. The remaining 20% will be accessible for trading the next trading day..

Stocks sold from T1 holdings (i.e. BTST) Proceeds can be used to purchase further equities or to engage in F&O trading. You can buy other stocks with 80% of the proceeds and trade in F&O with 60% of the proceeds.

Intraday profits earned
On the same day, proceeds can be used to buy stocks or trade F&O.
Earnings cannot be used until the exchanges have settled, i.e. T+1 for F&O and T+2 for Equity.
Options sold On the same day, you can use the proceeds to buy stocks and trade in either currency or equities F&O.
Option sale credit for stock options can only be used to buy options in the same segment; for example, option sell credit for stock options cannot be used to buy currency options.
Hedged Position
When the trade with additional risk/margin isn't carried overnight, you can quit any leg first without incurring a margin penalty, even if there is an intraday margin deficiency.
If appropriate margins are not available, exit the higher risk/margin position first, as margin requirements will be reviewed intraday, and deficits may result in a penalty.

A market order is an instruction to purchase a certain quantity of a security regardless of the price at which it is available. Market orders are restricted for long-dated options since they are typically illiquid contracts.


Due to a lack of liquidity, the bid and ask spread in the scrip is quite wide, which can have an immediate negative impact on your P&L. The bid/ask price may differ significantly from the contract's last traded or theoretical price.

A market order is an instruction to purchase a certain quantity of a security regardless of the price at which it is available. Market orders are restricted for deep in-the-money (ITM) options because they are typically illiquid contracts.

Due to a lack of liquidity, the bid and ask spread in the scrip is quite wide, which can have an immediate negative impact on your P&L. The bid/ask price may differ significantly from the contract's last traded or theoretical price. In this post, you'll learn how to use a limit order like a market order.

The position limitations for commodity derivative contracts are set out in SEBI circular SEBI/HO/CDMRD/DMP/CIR/P/2016/96, dated September 27, 2016. As a result, two or more related/connected clients (individuals, corporations, and HUFs) should not maintain positions in excess of the Exchange's specified limit. The client limits are outlined in the circular's Annexure A (Pg-4) section.

If you have numerous (Individual/Corporate/Partnership/HUF, etc.) commodity accounts with different/same brokers and hold positions, these positions will be combined to calculate the contract's overall open position limit. A penalty will be imposed if this exceeds the Exchange's specified limit.

By default, the Exchange will club all positions; however, if you do not want the positions to be clubbed, please provide us with written consent outlining grounds for not clubbing the positions, which we will transmit to the Exchange.

Some commodities futures contracts are resolved in cash, while others are settled physically. In this page, you can see the settlement type and the last dates of trading commodity contracts in trading portals.

Learn more about the many methods of settlements for commodities futures and options contracts in the sections below:

Futures MCX's commodity contracts can be settled in one of two ways. They are as follows:

1. Cash Settlement- On the expiry day, these contracts are cash-settled at the exchange's due date rate.
2. Physical Delivery Settlement- The seller of the contract gives the buyer (long position) delivery of the commodity equal to the lot size from the exchange-defined delivery warehouse. There are two types of physical delivery settlements:
Staggered- During the delivery intention period, the exchange can mark any of the open contracts as delivery. The delivery obligation will persist even if the contract is closed after it has been designated as delivered.

Compulsory-If the contract is open on the expiry day, all contracts are required to be physically settled by the exchange.
Options
On the day the option contract expires, all CTM (close to the money) commodity options contracts are devolved into the corresponding futures contract. If you have a CTM contract that is about to expire, you must keep a margin equivalent to the futures contract on the expiration date in order for it to degenerate into a future contract the next trading day.

What impact will the change in settlement type have on March/April aluminum and zinc contracts?
According to SEBI norms, aluminum contracts will be physically settled beginning in March 2019 while zinc contracts will begin in April 2019.

This means that the value of mutual fund purchases is greater than the value of mutual fund redemptions for this client.

The 'Mutual fund' row in the example above has a value of -14200. The following are some instances in which this could occur:

• The consumer has invested Rs 14200 in mutual funds.
• The client bought mutual funds and sold part of them, however the purchase price was Rs 14200 higher than the redemption price.
If this row's value is positive, it signifies that the redemption value is greater than the value of the purchases made (i.e profits).

The exchanges set a MWPL (Market-wide positions limits) for all stocks traded in the F&O segment, which is the maximum number of contracts that can be open at any given time (Open Interest). If the open interest of any stock exceeds 95 percent of the MWPL (all futures and options contracts of that stock), all F&O contracts of that stock enter a ban period.

When a stock's futures and options contracts are in the ban period, no new positions are allowed in any of the stock's futures and options contracts. During this time, you will only be able to exit existing positions. Only if the open interest falls below 80% is the ban lifted.

Brokers are subject to position limits in addition to the exchange-mandated initial margin requirements. The term "open interest" refers to the quantity of futures (or options) contracts that are now outstanding (open) in the market.

There is a client-by-client open interest limit of 5% of the total number of all derivative contracts for the same underlying, and a trading member-by-trading-member open interest restriction of 15%. (brokers)

Interoperability among Exchanges/Clearing Corporations was advocated by SEBI. (A clearing corporation ensures that your stocks and funds are settled for each trading day.)

Currently, NSE trades are handled by NSE Clearing Limited, whereas BSE trades are cleared by ICCL. Trades made on both the NSE and the BSE (Equity, CDS, and NFO) are settled through a single clearing organisation thanks to interoperability across clearing companies. NSE Clearing Limited has been picked by trading portal to clear all of its trades.

In the NSE system, there are two sorts of price limitations.

1. In 2014, F&O Execution Range was launched to safeguard traders from high impact fees while trading illiquid option contracts. All F&O contracts will have a live reference price, with market orders only being executed if they fall inside this range. The following table defines the range:
Segment Reference Price (Rs.) % of Reference Price Minimum absolute Range (Rs.)
Futures All 5% -
Options 0.05 to 50 - 20
>50 40% -

The following formula must be used to calculate the reference price for each contract:

• Theoretical price determined from the underlying price at market open.
• During Trading Hours — 1-minute simple average of trade prices, the reference price will be updated at 1-minute intervals throughout the day.
2. Circuit Restrictions- These limits are imposed on all F&O contracts and equities in order to prevent price manipulation. When the circuit restrictions are exceeded, NSE receives an alert and must manually release the constraints.
Unlike the execution range, the circuit limitations remain constant until either the upper or lower circuit limit is reached.

According to SEBI recommendations, the NSE has decided to enhance the Margin Period of Risk (MPOR) in the Equity Derivatives market from one day to two days starting January 21, 2019.

As volatility over two days is considered instead of one, the SPAN +Exposure margin will increase by a maximum of 41% of the present margins. Nifty and Banknifty futures margins will rise by almost Rs 10,000 and Rs 7,000, respectively.
A more extensive description of how the change will impact SPAN+Exposure margins can be found below:
SPAN margins are charged to cover the worst-case scenario for the contract you're trading on a given day. The exchange has now updated this to account for potential volatility over the next two days. The Price Scan Range of the index or stock is used to calculate SPAN margins.
The worst potential fluctuation in a scrip in a day is the Price Scan Range (PSR). The PSR is calculated using the scrip's daily volatility. For index contracts, the daily volatility is 3 sigma, and for stocks, it is 3.5 sigma. If the 3(and 3.5) standard deviation is less than the above-mentioned minimum, the exchange mandates a minimum PSR of 5% of the contract value for indexes and 7.5 percent for stocks. This will now be multiplied by 1.41 to account for price fluctuation over two days.
Over and above SPAN margins, exposure margins are levied. For index F&O, this is 3% of the contract value, and for stock F&O, it is 5% (or 1.5 sigma, whichever is larger). This will be raised to 4.24 percent for the index and 7.07 percent (or 1.5 sigma, whichever is larger) for stock F&O.

The Short Option Minimum (SOM) is a margin requirement for all strikes of option short contracts that are outside of the Price Scan Range. Nifty, for example, has a PSR of 762 points (covering a 7 percent movement). This practically means that owning a 11700 CE or 10000 PE is risk-free, but such contracts are subject to a 3% SOM. This will now be increased to 5% of the contract value. For stock options, there is no growth in SOM.

If the options contract is in the money, it will be physically settled. The following is the implication for contracts where physical settlement is not predicated on delivery:

If you've purchased options:

• STT will be levied on executed contracts at a rate of 0.125 percent of intrinsic value (how much in-the-money the option is) rather than the whole contract value. More information can be found in this Trading Q&A article.
• OTM option contracts will expire worthless if they are out of the money. You will forfeit your whole premium payment.
If you have any selections that have been shortened:

STT is only paid on the sell-side for options, which implies you would have paid it when you started the short. As a result, the STT will have no effect on expiry. You keep the premiums you receive, depending on the moneyness of the option contract.

Rollover is the process of converting from a near-expiring front-month contract to a contract in a later month, i.e. carrying forward your futures positions. This entails closing your position in the contract that is about to expire and creating a new position in a contract that is further out in time.


Any future or option you buy will have an expiration date (last day until which you can trade that contract). So, for example, you can only trade the Nifty 22nd February future until February 22nd, 2018. What if you want to hold nifty future to March?
In this situation, you must withdraw the Nifty February future and enter a new position in the March future, which will be good until March 29, 2018. Rolling over is the process of shifting your position from one month to the next. This rollover can be completed at any time until the market closes on February 22nd, 2018.

So, if you bought the Nifty February future at 11050 and the Nifty future at 11000 on February 20th, you decide to roll over your position to March in order to continue your nifty future buy position. So, you'll simply sell the Nifty February future and buy the Nifty March future, which you can now hold until March 29th.
Note that you must pay brokerage and costs when you sell the August futures and must pay brokerage and charges again when you buy the September futures. The fees are identical to those associated with a typical buy-and-sell transaction.

Rollover of contracts during the embargo period is not permitted, according to the SEBI circular and exchange clarifications. You will only be allowed to exit an existing position if you have a position in a contract that is currently banned.

The LTP can be as low as Rs 0.50 or as high as Rs 0.1. If the option's strike price is out of the money, the settlement price will be 0. (i.e. higher than the settlement price in case of puts or vice-versa.)

Important: Beginning January 21, 2019, the requirements of Circular NCL/CMPT/39766 will take precedence.

On September 1st, exchanges, in collaboration with SEBI, issued a circular adding Additional Surveillance Margin (ASM) in addition to SPAN and Exposure. This increase in margin was implemented to protect the ecosystem in the event of market volatility.
The Initial margin, which combines SPAN and Exposure margins, now covers the risk of roughly 8% change in indices and between 12.5 percent and 30 percent movement in equities in a single trading day. Due to the aforesaid circular, the margin requirement for trading Index contracts would have increased to 10% (an increase of 2%), and the margin requirement for stocks would have increased from 17.5 percent to 35 percent by November 2018. (5 percent more).

An was accomplished by adding this extra surveillance margin (ASM) to the exposure margin, which would have resulted in no margin benefits on hedged positions. As a result, if a client held long SEPT Nifty futures and short OCT Nifty futures, the additional exposure margin increase due to ASM would be the same.
The exchanges have rectified this by updating the circular and ensuring that the additional margin increase is on SPAN. If there are holdings that risk-hedge each other, this additional margin will now be reduced on a portfolio basis. As a result, in the example above, this ASM would decrease correspondingly as the SPAN margin required for owning Long SEPT Nifty future and Short OCT Nifty future falls.
Instead of adding Additional Surveillance Margin to the Exposure Margins as specified in the above-mentioned circular dated September 01, 2018, exchanges have amended the Price Scan Range (PSR) used for computation of Initial Margins in steps (4 times) to increase the coverage of risk arising from changes in underlying Index / stocks to cover risk for a 10% change in underlying indices and a 17.50% change in underlying stocks.


As a result, starting November 30, 2018, margins for trading futures and options have increased. Make sure that your F&O positions have enough margin to cover this rise. Any margin deficiency will result in a margin shortfall penalty, which may be squared off at our Risk Management (RMS) team's discretion.

Covered bonds are debt securities that are collateralized against a pool of assets and are issued by a bank or a non-banking financial company (NBFC). In the event that the issuer fails to pay, the money can be reclaimed from the pool of assets.

A covered bond's structure is described below.

1. Bonds are issued to investors by a bank or a non-bank financial institution (NBFI).
2. A cover pool of secured loans is also obtained as a recourse (safety precaution).
3. At the conclusion of the bond's maturity, the bank or NBFC pays the principal plus interest to the investors.
4. The sum can be reclaimed from the cover pool if the bank or NBFC fails to make the payment.
Housing loans, vehicle loans, gold loans, and other secured loans make up the cover pool.
Unlike secured corporate bonds, which only have recourse against the issuer, covered bonds have two types of recourse: first recourse against the issuer and bankruptcy-protected recourse against the issuer's assets (Cover Pool). Covered bonds are supposed to give a credit rating uplift, over and above the issuer's credit rating, due to the coverage provided.

The holdings tab displays a list of your Demat account's securities (stocks, ETFs, bonds, and so on). The positions page, on the other hand, displays any open intraday or derivatives trades you have taken.
The values for the positions and holdings tabs are different. The distinction is discussed further down.
The holdings tab displays a list of your Demat account's securities. From T+1 (trading day +1), shares purchased will appear under the Holdings tab.

The positions tab displays all of your open positions for the day, including intraday, derivatives, and delivery transactions.
Note:
• All shares purchased or sold using the CNC product type (for delivery) will appear in the positions tab on the day of purchase or sale. This is usual procedure. This tool allows traders to make intraday trades using equities from their holdings while also keeping track of their intraday profit and loss.

The speed with which orders are executed at market open is determined by two factors:

1. Order-handling capability of the exchange.

If the volume of orders exceeds the exchange's maximum capacity, the exchange lines may get congested, and your order may take several seconds to process.
2. The broker's order queue.

Leased lines connect each broker to the exchanges. These lines can handle a particular number of orders per second. If the order capacity is exceeded, customers are placed in a wait, and orders may take a few seconds to process.

Either of these things can happen when the market opens, delaying the execution of your order.

CDSL TPIN authorizations are only good for a single day.
From 8:00 a.m. to 5:00 p.m., all authorisations for the same day's trades will be logged.

After 5 p.m., you can place After Market Orders (AMO) for the next day by taking a pre-authorization of your holdings at the time of placing the order. Unless you change the order, holdings authorization will not be required for such AMO orders the next day.
For any other orders, you will need to obtain new authorization every trading day after 8 a.m.
All CDSL TPIN authorisations made outside of the stated times (after 5:00 PM and before 8:00 AM, except for AMO) will be ignored, and your orders will be denied.

An Market-Traded Fund (ETF) is a stock-like basket of securities that trades on a stock exchange. ETFs are constantly priced and can be bought or sold at any time during market hours. Purchasing and selling ETFs is as easy as buying and selling any other stock on the exchange, allowing investors to profit from intraday price fluctuations.

ETFs are held in the same Demat account as the rest of your portfolio.

When you believe the price of a security will fall from its current level, you make a short sale. You sell the security initially and then buy it back later in a short sale.

In the stock market, short selling is a strategy that involves selling a stock for less than its current value

When placing an order to short in Equity(EQ), you must select either MIS or CO, both of which are intraday order types.

Because short equity holdings cannot be kept overnight, you cannot carry forward a short equity position; if you have not exited (purchased back) the short position, it will be squared off at 3:20 PM.
Futures and options short selling:

F&O short holdings, unlike EQ short positions, can be carried overnight. You must choose MIS or NRML as the product type to short futures or options.
MIS stands for intraday, while NRML stands for overnight.
You must square off the order or convert the position to NRML to carry it overnight if you have intraday short positions in futures and options contracts, i.e. shorted using MIS or CO product types.
If you do not square off your intraday position by 3:25 p.m. for stock derivatives, 4:45 p.m. for currency derivative positions, and 25 minutes before market closure for commodity derivatives, it will be squared off by our RMS team.

If your stockbroker defaults, the regulators have put in place strong safeguards to preserve the safety of your holdings and funds.

Holdings

You can store securities electronically in either the CDSL or the NSDL in India. As a depository participant, your stockbroker indirectly manages the securities (i.e. a member of CDSL or NSDL). Because the assets are held safe at the depository, you will be able to transfer your holdings to another stockbroker of your choosing if current stockbroker defaults.
Funds

Stockbrokers, on the other hand, hold funds directly on behalf of their clients. Stockbrokers are required by SEBI to keep client Money in a separate client pool account. These funds can only be used by the stockbroker for their clients' investments and trades.

The Investor Protection Fund, like the DICGC, ensures the safety of your bank deposits. If your bank fails, the Investor Protection Fund ensures the safety of your cash held by your stockbroker (up to Rs. 25 lacs).
If your stockbroker fails to pay you, you have three years to submit a claim for compensation. You can see the eligibility criteria for such claims in this circular from SEBI.


Regarding claims arising from member expulsion/declaration of default, the NSE sets a maximum limit of Rs. 25 lakhs per investor per defaulter/expelled member. BSE, on the other hand, offers coverage up to 15 lakhs.

The index-based market-wide circuit breaker mechanism applies at three stages of index movement, in either direction, namely 10%, 15%, and 20%.

When these circuit breakers are tripped, all equity and equity derivative markets across the country come to a halt. The market-wide circuit breakers are activated by either the BSE Sensex or the Nifty 50, depending on which is breached first.

Shares are delivered to the buyer's Demat account two trading days following the transaction date in India. If you're the buyer, your stockbroker will let you sell these shares before they arrive in your Demat account, as long as the exchange delivers them on schedule.

If the exchange does not deliver the shares to the buyer, it signifies the seller failed to deliver the shares to the exchange in this transaction. In stock market jargon, this failure to deliver shares is referred to as "short delivery." The exchange then organises an auction for the same number of shares and delivers them to the buyer.
You will be able to see the shares tagged as 'T1 holdings' on trading portal till T+2 day if you purchased shares on Monday (let's call this T day) (Wednesday). If the shares haven't been delivered to your account by Wednesday, you won't be able to see them in your trading portal holdings on T+3 day (Thursday).

You will be able to see the shares on trading portal from the next trading day once the stock exchange distributes the shares on the T+3 day (Thursday) (Friday).

Short delivery can occur in equities with little liquidity or when a short MIS/BO/CO hasn't been squared off in certain situations. You will be advised of this via SMS and email in this situation.
Note: In the case of physical settlement of derivatives, if the seller fails to deliver, the exchange holds an auction on T+3 days. (The settlement time will be T+4 days in this situation.)

They are deemed closed out when there is a short delivery of shares and the exchange finds no new sellers in the auction markets. Instead of providing the shares to the buyer, the exchanges settle in cash based on the close out rate.
The stock that was short delivered will be closed out at the highest price in the exchange from the day of trade until the auction day, or 20 percent above the official closing price on the auction day, whichever is higher. This information is subsequently sent on to the buyer. Consider it as a form of compensation for the buyer in the event of non-delivery of shares.
As an example -

Assume you purchased 100 ITC shares at Rs. 700/- per share, and these shares were short delivered, causing you to miss T+2 delivery. The Exchange then conducts an auction in which it attempts to locate new sellers who can deliver 100 shares of ITC to you. The trade is completed by a close-out if there are no new sellers in the auction markets.
Assume that on the auction date (T+2) the official closing price of ITC was Rs. 800/-. In this situation, the Exchange would conclude the trade at Rs.960/- (20% higher than 800), and the defaulting stock seller would be responsible for an auction penalty of Rs.16,000/- (960-800*100). As a result, the bidder would receive a total of Rs 96,000/- (Rs 80,000, i.e. the closing price on the auction date + Rs 16,000, which is the auction penalty).
If the price of ITC had reached 980 (from the day of trade to the auction day), the close out is done at Rs. 980, not Rs. 960, because it is greater than the closing price + 20% auction penalty of ITC on the auction day. The buyer of the securities will be reimbursed with a credit of Rs.980 per share in such a circumstance.

The amount of money you are supposed to get on account of profits made or stocks sold is the quantity of unsettled funds in your account. Trade settlement is not instantaneous, and exchanges use a rolling settlement cycle.

You will not be allowed to use the funds from stock sales or intraday profits to purchase additional shares. After two trading days, the funds from the sale are transferred to your trading account. Trades in the F&O segment, meanwhile, are resolved after one trading day. In addition, if T+1 is a settlement holiday, intraday F&O earnings will be accessible on the next trade settlement day.

Brokers must collect the entire SPAN + Exposure margin, rather than just SPAN margin, to carry forward Futures and Options positions to the next day, according to the recent SEBI and NSE circulars.

You will be charged a margin penalty by the exchange and your position may be squared off by our RMS team if you do not have the entire margin required to carry forward the position (which can be found using the margin calculator).

NSE and BSE give SMS/Email warnings to retail investors for their transactions on days they have traded, in an effort to prevent fraudulent stock market trades through investor accounts.

When you place a market order, the exchange will execute the order at the best bid/offer available. In the event that the amount of existing bids/offers is insufficient to match your order quantity, the remaining unexecuted quantity will be matched against the next best bid/offer.

Let's look at an example to help you understand:
If you place a market order to buy 3500 shares of ITC, 108 shares will be purchased at 263.20, 934 shares will be purchased at 263.30, and the remaining 2458 shares will be purchased at 263.35.
In a different sense, the same notion applies to limit orders. If you had put a limit order to buy 3500 shares at 263.20 in the example above, 108 shares would be purchased instantly, but the remaining 3392 shares would remain as a pending order in your order book, and the order would be executed if any offer at your price came in.

Note that if any of the bids/offers contain only the disclosed quantity, the quantity executed will differ from what is shown in the market depth.

REs are temporary Demat securities that represent your eligibility to participate in the rights issue. REs can now be traded on exchanges, and you can sell them the same way you sell equities from your portfolio.

These REs are not rights shares in and of themselves; they must be used in order to apply for rights shares. The REs will become useless if you do not sell them or use them to apply for rights.
Until the RE trading period begins, the REs credited to your Demat account will not be displayed in your Trading portals holdings.

The REs are settled on a trade-to-trade basis, therefore you won't be able to trade them intraday. The seller of the RE is charged STT of 0.05 percent of the RE's value

To invest in the stock market, you'll need two types of accounts. To begin, you'll need a trading account where you'll conduct all of your stock market trades. The second is a Demat account, which stores all of your securities in an electronic format.
You cannot have more than one trading account with the same broker under your name. Furthermore, you are unable to add another person to your individual trading account because multiple people are not permitted to access a single trading account.
A shared Demat account, on the other hand, can have up to three holders. However, the account's first holder will get all communication regarding the account. Even a combined Demat account is restricted to a single trading account. As a result, any taxation on the P&L would be the primary/first holder of the shared Demat account's responsibility.

When a corporation receives exceptionally unfavourable news, the stock price drops dramatically. As a result, the stock continues to hit lower circuit restrictions on a regular basis, and no new customers come in to buy these shares. This is most common with penny stocks with little or no liquidity.

When there is a lot of purchasing pressure and demand for a certain stock, there may be a lot of bids but no one wanting to sell.
This is why, even though the order was placed correctly, it may not be executed because it is an open order.

Order matching on the exchange takes place on a price-time priority basis when you place an order during normal market hours. This means that orders are filled in the order they are received (queue system). If other individuals have placed orders before you, yours will only be fulfilled if the orders placed before you are filled.

To go ahead of the line, you can do the following:

1. After 3:45 p.m., place an AMO - Limit/Market order. (Market orders are more likely to be filled.)
2. Place a market or limit order at 9:00 a.m., before the market opens.
An AMO has a lower chance of being executed than a pre-market order. However, placing an AMO is more convenient because you can do so anytime between 3:45 PM and 8:57 AM for NSE and 3:45 PM to 8:59 AM for BSE, rather than waiting for pre-market hours.

Even if you place an AMO or a pre-market order, there is no guarantee that it will be filled. This holds true for all brokers.

BTST (Buy Today Sell Tomorrow) - Trades in which you purchase shares and sell them on T+1 or T+2 days before the stock is settled and sent to your DEMAT account.

The risk with BTST trades is that, because you're selling shares that aren't yet in your DEMAT account, you're relying on the seller to deliver the stock to you. If the seller fails to deliver the shares, resulting in a short delivery, your commitment as a seller to provide shares will be breached, and you will be subject to an auction penalty of up to 20% of the value of the stock short delivered.

The last traded price (LTP) is frequently not the same as the day's closing price. This is because the weighted average price of the last 30 minutes of trade on the NSE determines the day's closing price. The actual last traded price is the last traded price of the day.

Because the close on the daily candle is updated using the close from NSE bhavcopy, the LTP will not match the close on the daily charts.

If the market has moved around a lot in the last 30 minutes, the disparity is usually greater.

Corporate Insolvency Resolution Process (IRP) is a term that refers to the process of resolving a company' It is a procedure governed by the 2016 Insolvency and Bankruptcy Code. (India's bankruptcy law is the Insolvency and Bankruptcy Code, 2016 (IBC).)


In the event that a corporate debtor fails to repay its creditors, the financial creditor(s) has the authority to initiate the insolvency resolution procedure. An application to the National Company Law Tribunal is required to begin the settlement procedure (NCLT).
On NCLT's acceptance of the application, the Creditors' claims (i.e. company assets) will be frozen for a period of six months. During this time, the NCLT will consider the many possibilities for reviving the company and determine the best course of action, which could include debt settlement, corporate restructuring, or liquidation. This procedure is carried out in stages.

On such equities, the exchanges will implement additional surveillance mechanisms. Intraday trading and BTST will be prohibited, with 100 percent margins required.

This can be demonstrated with the following example:

Assume Reliance stock is selling at 1000 on the NSE and 1004 on the BSE. You may make an intraday arbitrage trade by buying at 1000 on the NSE and shorting at 1004 on the BSE. When the price difference is less than 4 (1004-1000), sell on the NSE and purchase back the shares on the BSE. If the difference between NSE and BSE prices is less than 4, you make a profit; otherwise, you lose.
This is an arbitrage trade since you are only concerned with the price differential between Reliance on NSE and BSE, not with whether Reliance moves up or down.

You can only make an arbitrage deal if you already have equities in your DEMAT account. So, if you had Reliance in your DEMAT, you could sell it at 1004 on the BSE and instantly buy it at 1000 on the NSE, lowering the cost of your holding. You won't be able to make any new intraday sell or purchase orders on multiple exchanges.

In one exchange, you'll be able to make a MIS buy order, while in the other, you'll be able to put a MIS short order. Both of these trades, however, must be squared off individually on each exchange before the end of the trading day.

If you own shares of a firm that trades on both markets, you can sell them on one and then buy them back on the other. Even if these trades are classified as CNC, all fees, including the STT, will be applied as if they were intraday trading.

The volume chart shows how many shares/contracts are bought and sold over the course of a certain time period. Indices aren't stocks or contracts, and they can't be exchanged on the open market. Only derivatives or exchange-traded funds (ETFs) can be used to trade indexes.

Volume data will be unavailable due to the lack of trades on the Indices, and you will be unable to add volume-based indicators to the charts.

The phrase "delisting" refers to the withdrawal of a company's securities from a stock market. The securities of that corporation would no longer be traded on that stock exchange as a result of delisting.
There are two grounds for a company's delisting: forced or voluntary.

Forced delisting - When the exchanges decide to delist a company, usually due to non-compliance, this is known as a forced delisting. If you own shares in such businesses, you'll have to write them off as a terrible investment.

Delisting shares voluntarily - This occurs when the corporation decides to remove the shares from the exchange. This could be the result of a company reorganisation. In this case, the corporation will have to offer a premium above the current market price of the shares. Typically, the premium rises to 30-40% or higher.
In either case, when a company delists, its shares are renounced and are no longer traded on the stock exchanges.

Income received in India is subject to taxation under Section 5 of the Income Tax Act of 1961.

It is recommended that you get the advice of a tax expert who will determine your tax liability based on the nature and amount of your income received in India.

On the NSE, MCX, and BSE, you may see all trades made with any stockbroker in the last 10, 7, and 5 days.

AMOs will not allow you to place stop-loss (SL or SL-M) orders. During non-market hours, however, you can utilize a GTT order to place a stop-loss..

A lump-sum investment is when you invest all of your money in a mutual fund at once. Lump-sum investments are usually rather large.

A lump sum investment, for example, is one in which an amount of Rs.1,20,000/- is invested in a mutual fund all at once.

A systematic investment, on the other hand, is when you choose to invest the same amount, i.e. Rs.1,20,000/- in a staggered way (for example, 10K every month for 12 months).

Pre-open session: The NSE pioneered the notion of a pre-market open session to reduce the volatility of shares during the daily market open. On the NSE, the pre-market period runs from 9:00 a.m. to 9:15 a.m.

Orders are received, amended, or cancelled during the pre-market session for the first 8 minutes (between 9:00 AM and 9:08 AM). Limit and market orders are both possible. Between 9:07 and 9:08 a.m., the order collection window will close.
New orders cannot be placed after the collection window closes at 9.15 a.m. The trades are confirmed after the orders are matched. Only the equity section can be used to place orders during the order collection period.
Post-closing session: Post-market orders, like pre-market orders, are exclusively available for stock trading. From 3:40 PM to 4:00 PM, the post-market or closing session is open.
People can put buy/sell orders in equity (delivery segment using the CNC product code) at the market price during this session, however keep in mind that even if you place a market order, it will be executed at the closing price on the exchange. So, if Reliance's closing price at 3:30 PM is Rs. 800, you can place market orders to purchase or sell Reliance at market price between 3:40 PM and 4:00 PM (will be taken at Rs. 800).

The post-market session is quiet, but you can monitor stock movement by opening the MarketWatch window between 3:40 and 4:00 p.m.

Stocks in GSM stage 2 or higher will not be available for purchase. Additional Surveillance Deposit (ASD) of 100% of the trading value or more is required for these stocks. Even after you sell the stock, the exchange will keep the ASD margin restricted for at least 3 months.

As part of our RMS policy, the limits only apply to new buy purchases. You will be able to sell your GSM stage 2 and higher stock if you have it in your account.

Stocks in GSM stage 2 or higher will not be available for purchase. Additional Surveillance Deposit (ASD) of 100% of the trading value or more is required for these stocks. Even after you sell the stock, the exchange will keep the ASD margin restricted for at least 3 months.

As part of our RMS policy, the limits only apply to new buy purchases. You will be able to sell your GSM stage 2 and higher stock if you have it in your account.

The increased surveillance is part of a larger effort by SEBI and the exchanges to improve market integrity and protect investors' interests.

Additional margins are divided into two sections:

1. Long term additional surveillance measures
2. Short term additional surveillance measures
This includes the criteria used to determine which stocks should be moved to ASM, as well as the monitoring activities that should be taken in relation to these equities.
• The shortlisted securities will be monitored further based on pre-determined objective criteria, and once the conditions are met, they will be moved to the Trade for Trade category.
• Margin will be banned at 100% of the traded value, i.e. there will be no intraday leverage (MIS/BO/CO is not allowed).
• Stocks held in ASM cannot be pledged.
A stock's ASM status has no bearing on corporate decisions. Even if the scrip is under ASM, all corporate actions such as bonuses, dividends, stock splits, and other perks are passed on to the shareholders.

Note that if a stock you have pledged is moved under ASM, you will no longer be offered collateral margins for that stock, as ASM requires a 100 percent margin. The value of collateral obtained against that stock will be deducted from the collateral value (visible on the trading terminals).

Until the stock is moved out of ASM, you can either un-pledge it or retain it pledged without collateral.

Non-compliance with regulations might result in a stock's suspension from the exchanges. The stock is no longer traded on the exchanges after it has been suspended.

On each exchange's website, you may find a list of stocks that have been suspended:
• NSE
• BSE
The suspension of a company's stock may have an impact on its value, but it does not always imply that the shares are worthless. It simply means that they are not permitted to trade on a stock exchange. The exchange may suspend a company from trading for a variety of reasons, but if the suspended firm complies with all regulations, the suspension will be lifted and the shares will resume trading.
You'll have to write it off as a loss if the company is suspended and later closes; there's nothing you can do about it.

The T+2 settlement cycle is used in India's capital markets. This means that if you buy a stock on Monday, it will arrive on Wednesday in your Demat account. You can, however, sell your shares before it arrives in your Demat account.

Shares can be sold before they are delivered to your Demat account in a BTST (Buy Today Sell Tomorrow) transaction.
BTST transactions will be resolved by first crediting shares to your account on the day they are received from the Clearing Corporation, and then earmarking them for delivery against stock you have previously sold.
For example - Assume you've bought 100 shares of Reliance on Monday and sold these on Tuesday. As per the settlement cycle for the purchase, we would be transferring the shares you bought to your Demat account on Wednesday. On the same day, we will earmark the 100 shares of Reliance against the sale you've made on Tuesday. These shares will be debited to your account towards the settlement on Thursday (T+2 day of the sale made on Tuesday).
By transferring the shares to your account, earmarking, and debiting for sale settlement, you may be confident that any corporate activities, such as dividends and bonuses, will be credited straight to your account. In the same way, any TDS deducted for dividends would be reported against your PAN and reflected in your 26AS rather than being passed on from the Broker's PAN.

The term GSM' stands for 'Graded Surveillance Measurement.' The Securities and Exchange Board of India (SEBI) and exchanges have been introducing various enhanced surveillance measures such as price band reductions, periodic call auctions, and the transfer of securities to the Trade to Trade segment from time to time in order to improve market integrity and protect investors' interests.
As indicated in the diagram below, there are four stages of surveillance actions:


GSM stocks are listed on the NSE and BSE.

Stage II requires a 50 percent Additional Surveillance Deposit (ASD) of the trade value, which is reflected in your ledger.

The following table will be used to determine how much money will be released:

Stocks can be extremely volatile on the day of their first public offering (IPO) and are prone to hitting upper or lower circuits. You may not be able to square off any intraday positions you have taken if a stock hits the circuit limit. This trade may result in the conversion of an intraday buy position into a delivery position, or it may result in auction fines (for intraday sell orders that you have been unable to square off).

To mitigate this risk, a limit on intraday (MIS) trades is usually imposed for the first two hours after an IPO is listed. At the discretion of our risk management staff, the block can be kept in place for the entire day or removed.

Record Date- If you own the shares on the designated date, which is also known as the record date, you are deemed an eligible shareholder in the company's records.
When a firm announces corporate activities such as the entitlement of right shares, bonus shares, stock splits, dividends, and so on, qualified shareholders are entitled to receive advantages or adjustments.
Ex-Date: The ex-day is the date on which a stock begins trading ex-benefit, that is, without the benefit of corporate action. After two trading days from the day of purchase in India, shares are delivered to your Demat account. Until the ex-dividend date, a stock is considered to trade with the benefits of the corporate action, or cum-benefit (i.e. cum-rights, cum-dividend, etc.). After that, it trades without the benefit, or ex-benefit.
Let's look at an example to help you understand:

Assume that a corporate action's record date falls on a Wednesday.

1) This stock's ex-date will be Tuesday, one day before the record date.

2) You'll be eligible for corporate action if you buy the stock earlier than Monday or earlier than Monday.

3) The stock is said to be cum - corporate action up until Monday, which means it gains from the corporate action.

4) The stock is said to trade ex-corporate action starting Tuesday.

5) You will not receive the advantage of corporate action if you purchase the stock after Monday.
Except in the following circumstances, you will always receive the shares you purchased after two trading days:

1. Settlement holiday -If the record date falls on a settlement holiday, the shares will be delivered on the next working settlement day. Assume that Wednesday was a settlement holiday in the previous case. If you buy the shares on Monday, you'll get them on Thursday (after the record date) and won't be able to participate in the corporate action.

To ensure that the shares are available in your Demat account on the record date, you must purchase the stock at least one trading day prior to Monday.
2. Short delivery - Short delivery occurs when the seller on the other side of your trade fails to deliver the shares. The exchange will hold an auction in this case and deliver the shares to your Demat account by T+3 day. So, if you buy shares on Monday but don't get them until Thursday or later owing to delayed delivery, you won't be eligible for the corporate action because you didn't have the shares in your account on the record date

A stock split is a corporate operation in which a corporation divides its existing shares into several shares in order to increase the stock's liquidity. Because the split adds no real value, the overall value of the shares remains the same compared to pre-split amounts, even while the number of shares outstanding grows by a specific multiple.

Existing shareholders are given the option to purchase more shares in proportion to their current holdings in a rights offering. The price of the Rights issue will always be lower than the stock's current market price. The purpose of a rights issue is to raise capital to pay off debt, purchase assets for the firm, and acquire another company, among other things.

A fractional share is a stock unit that is less than a whole share. Stock splits, bonus shares, and other corporate acts can result in fractional shares. Fractional shares aren't traded on stock exchanges, thus they can't be bought or sold there.

For Example –
If you own 9 shares of ABC Ltd, and the firm announces a 3 for 2 stock split, you will receive 3 shares for every two stocks you own. As a result, for the 9 shares you currently own, you are entitled to 4.5 more shares. Your total number of shares would be 13.5 after getting the 4.5 shares.

When fractional shares arise, most firms choose to round up to the next whole number of shares. ABC Ltd can choose to round up 0.5 shares and leave you with 14 shares in this situation.

When a company merges with another company, the shares held by shareholders are not identical to the share swap (i.e. exchange) ratio established for the merger.

Consider the following scenario:

Assume you own 29 shares of ABC Ltd, which recently merged, and the new business (XYZ Ltd) makes an offer to provide XYZ stock in a proportion of one stock for every five stocks you own (1:5). In this situation, you can only purchase 5 shares of the new firm XYZ (5*5 = 25), but the remaining 4 shares of the old company ABC are still available (29-25). You will be entitled for a fractional share in XYZ worth 0.8 (4 shares / 5 = 0.8) in this situation."
Is it possible to sell fractional shares?

Because fractional shares do not trade on exchanges, the corporation chooses a trustee to purchase them. The trustee then purchases the fractional shares from the investors and credits the proceeds to the primary bank account.

A corporate action in which a corporation reduces the number of shares traded on the stock exchange is known as share consolidation. The term "reverse stock split" refers to the consolidation of shares.

Consolidation of shares occurs when a firm reduces the number of shares held by current shareholders.

Consider the following scenario:

If you possess 10,000 shares, a 5:1 share consolidation means that each of your five shares will be reduced to one. As a result, your 10,000 shares will be reduced to 2000.

When shares are consolidated, the number of shares issued decreases, but the price per share rises, preserving the value of your investment.
Note:

1. The valuation of the company is unaffected by consolidation.

3. A corporation will tell you through email before a stock consolidation, just like any other corporate activity.

A bonus issue is an offer to existing shareholders of free additional shares. As an alternative to paying dividends, a firm may decide to distribute extra shares. For every two shares held, a firm may offer one bonus share.

Bonus shares will be available to you. If you bought the stocks before the expiration date. You will not be eligible for bonus shares if you purchased the shares on or after the ex-date.

The promoter of a company might sell their shares to institutional and retail investors through an Offer For Sale (OFS).

The promoter of an OFS approaches the stock market with the offer's specifics. An investor can put bids to demonstrate interest in buying shares of the company once the OFS window on the exchange opens.

Mergers and spin-offs have varying effects depending on the circumstances and swap ratio.

A swap ratio is the exchange rate between the shares of two companies that are merging. This is determined by valuing the merging companies' different assets and liabilities.

The swap ratio establishes how much power each company's shareholders will have over the combined entity. It is a measure of the company's relative financial and strategic performance.

Before being credited to your bank account, the dividend amount is reduced by the appropriate TDS (tax deducted at source) rate. TDS on dividends may have escaped your notice. If the dividend on equities shares and equity mutual funds exceeds Rs. 5000, TDS is deducted at a rate of 10%.
However, under the following cases, the TDS rates may differ:

1. TDS is deducted at a 20% rate if the company (or the appointed RTA) does not have your PAN on file.
2. TDS is deducted at a rate of 20% in the case of a non-resident shareholder (plus surcharge and cess).
3. TDS is deducted at a lower or zero rate if you have filed Form 15G or 15H with the company in which you invested.
Dividend TDS is deducted from your tax bill at the conclusion of the fiscal year.


Please keep in mind that

If you sold your stock on the ex-date or record date, or if it was pledged, dividends announced before May 16th, 2021, may be deposited to your trading account after deducting TDS. The credit will be updated against your PAN if TDS is deducted. Even if you sold your stock on the ex-date/record date or had it pledged, you will receive the direct benefit of the corporate action from the firm starting May 16th, 2021.

Yes, even if you sold the stocks on the ex-date or the record date, you will be entitled for the advantages of corporate actions.

To be eligible for corporate actions such as dividends, bonuses, splits, buybacks, mergers, amalgamations, and other such things. On the record date, the shares must be in your name.

You will be entitled for corporate action advantages even if you sell the stocks on the ex-date or record date.
Dividends and other cash entitlements are credited immediately to the principal bank account you've linked to your Demat account. Any fractional stock entitlement you receive as a result of a corporate action can be settled in cash in your primary bank account.

The corporation directly credits stock entitlements in corporate acts such as bonuses, splits, and so on to your Demat account.

Companies can purchase back shares from public shareholders using one of two methods:

1. Buyback Tender Offer: The company makes an offer to buy back its shareholders (Offer price), and the shareholders can tender their shares at that price.
2. Open-market buyback: The corporation can choose to buy back its shares on the open market by actively buying from sellers on the exchange platform. In the buyback offer, the corporation indicates the buyback time. The corporation must ensure that there is no major price appreciation as a result of its buying activities, therefore these buybacks normally persist for months.
Because only a fraction of the shares you sold for a buyback offer would have matched with the company's buyback order, you might not get paid for all of them. The exchange where your trades are performed will send you an email with the specifics of your executed buyback order, including the number of shares.

The government has enacted a buyback tax, which requires the corporation buying back the shares (open-market or tender buyback offer) to pay all applicable taxes. This confirmation can be used to claim relevant tax breaks under the Income Tax Act of 1961.
Let's pretend you've sold 2000 shares of a corporation from your portfolio. It's probable that the business will only purchase back 800 shares, with the remaining 1200 being sold to a regular buyer. The exchange will send you an email verifying the transaction of the 800 shares that the corporation bought back.

Over the course of two days, orders for an Offer For Sale (OFS) issuance are collected.

The first day is set aside for orders from institutions and high-net-worth individuals (bids above Rs. 2 lacs). On the second day of the issue, all retail bids are placed. A cut-off price for the second day is calculated based on the bids received on the first day of the issue. For retail bids, the new cut-off price becomes the floor price.

In the event of weaker demand for the OFS, the retail cut-off price might be the same as the institutional cut-off price. A strong institutional demand, on the other hand, can result in a substantially higher retail cut-off price.

The corporation can choose to buy back its shares in an open market buyback by actively buying from sellers on the exchange platform. In the buyback offer, the corporation indicates the buyback time. During this time, either a regular buyer or the company could be the counterparty for your sell transaction.
The government has enacted a buyback tax, which requires the corporation buying back the shares (open-market or tender buyback offer) to pay all applicable taxes. This confirmation can be used to claim relevant tax breaks under the Income Tax Act of 1961.


Let's pretend you've sold 2000 shares of a corporation from your portfolio. It's probable that the business will only purchase back 800 shares, with the remaining 1200 being sold to a regular buyer. The exchange will send you an email verifying the transaction of the 800 shares that the corporation bought back.

Off-market transfers, IPOs, FFOs, BONUS & SPLITs, and other corporate activities that credit your DEMAT account will take one working day to appear on our trading platforms.

Company A, for example, announces and issues BONUS shares. 2 weeks after the record date, it is added/credited to your DEMAT account. It will only be available on Trading portals the next working day after the shares have been sent to your DEMAT account.

Stocks credited on a given day will not appear on the trading terminal the following day.

A dividend is money paid out by a company to its shareholders. A dividend can be thought of as your part of the company's profits if you're a shareholder.

Dividends will be available to you. If you bought the stocks before the expiration date. You will not be entitled for the dividend if you purchased the shares on or after the ex-date.

On August 30th, 2019, the Indian government announced the merger of ten public sector banks. The following mergers will take place, according to the notification:


United Bank of India and Oriental Bank of Commerce merged to form Punjab National Bank:

Punjab National Bank has 121 equity shares of Rs. 2/- for every 1000 stock shares of Rs. 10/- held by United Bank of India, and 1150 equity shares of Rs. 2/- for every 1000 equity shares of Rs. 10/- held by Oriental Bank of Commerce.

The deadline for submissions is March 25th, 2020.
Allahabad Bank was merged into Indian Bank.

Indian Bank has 115 equity shares of Rs. 10 each for every 1000 equity shares of Rs. 10 each held by Allahabad Bank.

The deadline for submissions is March 23rd, 2020.

Syndicate Bank was merged with Canara Bank.

For every 1000 shares of Syndicate Bank, there are 158 shares of Canara Bank worth Rs. 10/-.

The deadline for submissions is March 23rd, 2020.
Union Bank was formed through the merger of Andhra Bank and Corporation Bank.

325 Union Bank shares of Rs. 10/- each for every 1000 Andhra Bank shares of Rs. 10/- each, and 330 Union Bank shares of Rs. 10/- each for every 1000 Corporation Bank shares of Rs. 2/- each

The deadline for submissions is March 23rd, 2020.

What impact do the mergers have on you?

In the above-mentioned ratios, the shares of the transferor banks (banks merging) held in your Demat account as of record date will be eligible to be converted into shares of the respective transferee banks. On the ex-date, the banks that are merging will be unable to trade (one trading day before the record date). The RTA may take 15-20 days to credit the transferee bank's shares to your Demat account.

The transferee bank will settle any holdings that result in fractional allotment of shares in cash. Your company's RTA will send you a check or an ACH bank deposit for this amount ( Registrar and Transfer Agent).

For retail bids, the maximum permissible bid value is Rs. 2 lacs. The maximum quantity allowed is determined by the maximum allowable value as well as the retail cut-off price.

Maximum quantity of bids allowed = Rs. 2 lacs / cut-off price

For example, if an OFS's cut-off price is Rs. 111, the maximum bid quantity allowed is 2,00,000/111 = 1801.

On our bulletin page, you can look up the details of an OFS, including the maximum permissible bid quantity. After the cut-off price is decided on the first day of bidding, the maximum authorised bid quantity' is updated. The cut-off price is labelled 'Yet to be set' until then.
Over the course of two days, orders for an Offer For Sale (OFS) issuance are collected.

The first day is set aside for orders from institutions and high-net-worth individuals (bids above Rs. 2 lacs). On the second day of the issue, all retail bids are placed. A cut-off price for the second day is calculated based on the bids received on the first day of the issue.

For retail bids, the new cut-off price becomes the floor price. Only retail bids that are at or above the cut-off price are accepted.

The exchanges decide on the allotment of OFS, hence it is out of the broker's control. The cut-off price is determined by the general (non-retail) category's bids. If there is a lot of demand for the OFS, the allotment price may go up. For further information on the allocation processes, read the following.
Either of the two approaches is used to determine the allotment.
i. Price priority (multiple prices) basis: Retail investors may be assigned shares at a discount to the retail category's cut-off price, regardless of the bid price they entered, or Retail investors may be assigned shares at a discount to the bid price they entered.
ii. Proportionate basis at a single clearing price: Retail investors will get shares at a discount to the retail category's cut-off price.
Retail investor bids will be rejected and will not be considered for allocation in the following scenarios:
• Retail investors must get at least 10% of the total offer amount. For the purposes of this definition, a retail investor is defined as an individual investor who submits bids for shares with a total value of less than Rs.2 lakhs across all exchanges. Bids in the retail category will be rejected if the total bid value across exchanges exceeds Rs.2 lakhs.
• Individual retail investors will be able to bid in both the retail and general categories. Bids in the retail category will become invalid if the cumulative bid value of such investors surpasses Rs.2 lakhs.

The period during which a firm will not process changes to its books or requests to transfer shares.

The book closure date is frequently used to determine the cut-off date for determining which record investors will get a dividend payment/bonus issue/split stock, and so on.

Investors buy and sell shares of publicly traded firms on a daily basis, resulting in daily stock turnover. As a result, when a corporation declares that it will pay a dividend, give a bonus, or split stock, it must specify a particular date on which it will "close" its shareholder record book and commit to distributing the dividend to all shareholders who own shares as of that date.

A follow-on public offering (FPO) is when a publicly traded firm that is already listed on an exchange issues shares to investors.

An FPO is a stock issue of extra shares by a firm that has already gone through the IPO process and is publicly traded. FPOs are a common way for firms to generate additional equity capital through a stock issue in the capital markets.

The application process is comparable to that of initial public offerings (IPOs).

The following penalty rates are applied to the deficiency amount:
Short collection for each client Penalty Percentage
(< Rs 1 lakh) And (< 10% of applicable margin) 0.5%
(= Rs 1 lakh) Or (= 10% of applicable margin) 1.0%
If the short collection period lasts longer than three days, a 5% penalty is imposed to the shortfall for each subsequent incidence of short collection.

If there are more than 5 times of late payment in a calendar month, a penalty of 5% is applied to each additional incidence of late payment.
The penalty amount is subject to GST at the applicable rate (currently 18%).

The cut-off/due date for reporting margin is T+5 days, thus we put the item on your ledger once we receive the penalty file from the exchange, which is on T+6 day.

Margin penalty is imposed anytime there is a shortage in the available margins in the client's account, as stated here. The 'available margins' used for margin reporting are not the same as the actual account balance. Unencumbered balance refers to the margins that are taken into account for margin reporting.
To comprehend what unencumbered balance is, you must first comprehend the Indian Exchanges' settlement cycle. The credit in the Equity section is realised on T+2 and the credit in the Derivative segment is realised on T+1, according to the settlement cycle. This means that even if you sold stock and earned a credit on T day, you won't see the money until T+2.
There are a variety of factors that can diminish your unencumbered balance, resulting in an account shortfall and consequent penalty penalties.

The following are some of the most common reasons:

The premium received from the sale of options can only be used to purchase options in the same exchange segment. Margin penalty will be imposed if you sell options in equities derivatives and utilise the premium to trade in other segments.
Intraday earnings are put to good use. Intraday equities trading earnings are settled after two working days, whereas derivatives trading profits are settled the following working day.
In the event of a settlement holiday, any cash received from trades completed before to the holiday will require an additional day to be settled in your account. Margin shortfalls can also be caused by the use of money that haven't yet been paid on the settlement holiday.
Another thing to keep in mind when utilising collateral is that a change in the collateral margin due to a change in the stock price or a change in the haircut applied can alter your total margin available.

After the allotment, the requirement for IPO applications is usually repealed. Funds in your bank account will be unblocked upon revocation.
Note that certain banks may not be able to complete revocation until the mandate expires. If you have not received your allotment of shares, you may request that your bank release funds at any point following the allotted date.

The offer price at which the shares are issued to investors is known as the cut-off price, and it might be any price within the price band.



For this particular IPO, the price range in issue price 72 - 76 may be found here.

An initial public offering (IPO) book-building problem begins with a price range. For the issue, there is a minimum and maximum price. Within the suitable range, an investor can bid for the desired quantity in multiples of the lot size.
Selecting the cut-off option when applying for the issue signals your readiness to subscribe to shares at any price within the price band discovered during the book-building process, hence boosting your chances of receiving an allocation.

An IPO, for example, has a price range of Rs.72 to Rs.76.

If you apply for shares at Rs. 74 and the discovered issue price is Rs. 73, you will be allotted shares at Rs. 73 because you were willing to subscribe up to Rs. 74. If the detected issue price is less than Rs. 75, you will not be given an allocation.

If you choose cut-off, you will be eligible for allotment at any problem price that is discovered.

Despite receiving an IPO allotment, why did my UPI mandate fail?
Even though you have received your IPO allotment, the UPI mandate may fail due to technical challenges on your bank's end.

The registrar and the banks share an allotment file that shows which Money are deducted from the account. If the bank has technical difficulties, the debit will be re-attempted. The bank is responsible for ensuring that Money are debited from your account and transferred to the issuer's bank.

The shares credited to your Demat account will be accessible for sale on the listing date, even if your funds aren't debited.

We'll send your bid to the exchange once you've placed it. The bid is then sent to your bank via NPCI, allowing you to get the mandate request on your UPI app. The application flow is depicted in the diagram below:

The Product types to utilise every time you place an order through trading portal CarryForward and Intraday.

For delivery-based stock trading, CarryForward is used. You intend to retain the stocks overnight for as long as you like in a delivery-based deal. You will not gain any leverage or have your position automatically squared off if you use the CarryForward product type. CarryForward will not allow you to take any short positions. This product type, on the other hand, can be used to sell the shares from your Holding.

CNC is merely a product category. If you use CarryForward to purchase and sell a stock on the same day, it will be treated as an intraday trade, and you will be charged intraday brokerage.

Intraday Equity, Intraday F&O, and Intraday Commodity are all traded using Intraday Square Off. The intraday leverage is calculated using the Intraday product type. On our Margin Calculator, you may check the margins supplied in Intraday using the MIS product type. If no open positions under the Intraday product category are closed before the auto-square off period, they will be automatically squared off. The auto-square off timings can be found here.

For overnight trading of futures and options, Carry-Forward is used. In derivatives, the Carry-Forward product type can be used to carry a position until it expires. This product type will not give intraday leverages. Currency delivery is also traded using the NRML product type.

Only if you have sufficient margins in your account will you be permitted to convert Intraday positions to CarryForward. To find out how much extra margin you'll need to convert to CarryForward., use the margin calculator.

In Trading portals, open the 'Positions' page to convert Intraday to CarryForward and vice versa. Select convert from the 'Options' menu.

A limit order lets you to purchase or sell a stock at the price you choose, or at a higher price if the price is lower.

To put it another way, if you place a buy limit order, the stock will be purchased at your limit price or a lower price, but not at a higher price. A sell limit order, on the other hand, will sell the stock at your limit price or higher, but not lower.

An example is used to explain the concept.
SBIN's LTP is 185.40 in the example below; the highest bid and offer are 185.35 and 185.40, respectively. Because there is a sell offer at 185.40, if you put a limit buy order at 190, SBIN will be purchased at 185.40. Since you're acquiring the shares for Rs. 4.60 less than what you're ready to pay, buying at Rs.185.40 is a good deal.

Because there is a bid to purchase at 185.35, a limit sell order placed at 180 will be liquidated at 185.35. Since you're selling the stock for Rs.185.35, you're getting Rs. 5.35 more than you're asking for it.

The exchange matching engine works in this manner.

What if you simply wanted to buy at 190 or sell at 180 in the example above?
Trigger orders can be used.
The real orders aren't placed on the exchange matching engine; hence they're called trigger orders. Instead of an order, a trigger price is set, and if the last traded price hits or crosses the trigger price, the actual order is executed.

We have two sorts of trigger orders at Bloom:
1. Orders that are good until triggered (GTT) have a one-year validity period.
2. Stop-loss orders that can be used as trigger orders, although they are only good for one day.
Rather than utilizing a limit order, you may use a GTT (or SL) order to buy the stock at a 190 limit or at market price with a 190 trigger. When the stock price reaches 190, the trigger is triggered, and your order to buy at 190 is executed. Similarly, with a trigger price of 180, place a selling limit or market order.

Before you use GTT or SL, make sure you know what you're doing.

Limit Orders
A limit order lets you to purchase or sell a stock at the price you choose, or at a higher price if the price is lower.

In other words, if you set a purchase limit order at Rs 92, you only wish to acquire the stock at Rs 92 or lower from the exchange. You don't want to spend more than Rs 92 on this item. Similarly, you wish to sell the stock at Rs 95 or higher if you put a sell limit order at Rs 95.

The benefit of using a limit order is that you can purchase or sell at any price you want. However, depending on whether a counter order for some quantity or none at the price you've set is available, your order may be partially or totally filled.

Market Orders
A market order allows you to buy or sell a stock at the best available price.
If you're placing a buy market order, you want to buy a specified quantity of stock from the exchange at any price available. Similarly, if you're placing a sell market order, you want to sell your stock at any price buyers are willing to give.
Market orders provide the advantage of executing your deal as soon as it reaches the exchange if there are willing counterparties, such as buyers for sell market orders or sellers for purchase market orders. The immediate order execution, however, comes at the cost of slippage (which means you could be paying slightly more money to buy or getting slightly less money to sell your stocks).
Points to remember:

Limit orders with a value of 0 rupees will be rejected by Trading portals. A market order for Rs 0 was previously placed on the exchange as a limit order.
1. If your limit order is for a -, it will be executed as a market order.
2. Purchase a limit order if the limit price is higher than the best offer price.
3. Limit order to sell: the limit price is lower than the best bid price.

MarginPlus Order is not allowed to participate in stock options since they are very volatile and lack liquidity.

MarginPlus Order is not available in currency options because they are already highly leveraged, and adding extra risk to you as a client and us as brokers would be extremely hazardous.

To begin, you should be aware that it is technologically impossible for a broker's chart (regardless of which broker) to display all deals made at an exchange today. This is why:
Every second, tens of thousands of trades are executed on the exchange by thousands of people. At the exchanges, trades on a single stock happen in microsecond intervals, and exponentially more on volatile days. The data feed supplied by the exchanges is used to create the charts you see on Trading portals (or any other broker). These "ticks" feeds are composite snapshots of multiple such trades spanning longer time intervals, such as one to four times per second, or all trades lasting at least 250 milliseconds. These four ticks are used to create the charts, not the thousands of ticks or deals that occur on the exchange. As a result, the chart will not be able to display all deals.
Why can’t exchanges send all trades to the broker?
The Tick By Tick (TBT) feed is a data feed that includes every single deal that occurs at the exchange every microsecond. Because of the massive volumes of data involved, sending it over the internet or leased lines is impractical.
This problem of not being able to view a certain price on the chart usually occurs when a large order moves the price for a few microseconds and is not captured in the exchange snapshot sent to the broker. As I previously stated, there is currently no technical solution to this problem. Perhaps in a few years, when internet capacity is enormously greater than it is now, we will be able to get exchange feeds with every single deal. This problem can be found in all international transactions.
Execution price
Every order, whether it's a market order, a limit order, or a stop loss order, is sent to the exchange in real time by the broker. The exchange is where the order is actually filled or executed. Any price at which an order is filled is filled centrally by the exchange. At the exchange, brokers have no role or control over order matching and execution.

If an exchange trade ID is present, it indicates that the trade was completed on the exchange.
What if I want to see all the ticks or trades?
Exchanges provide a colocation option where you can house your servers on their premises and use the exchange's premium Tick by Tick data stream. These feeds must be consumed over LAN rather than the internet within the exchange facilities. Because you won't be able to stream it out over the internet, you'll have to design a programme to consume many GBs of raw data, transform it into an intelligent format, and consume it right there on the co-located server.

High frequency trading desks are the primary users of TBT data. It is not intended for retail customers, is unreasonably expensive, and, as previously said, is difficult to transfer over the internet.

A stop-loss order is a buy/sell order used to minimise losses when you are concerned that the price of your trade will move against you. For example, if you bought a stock at Rs 100 and want to limit your loss at Rs 95, you can use the system to place an order to sell the stock as soon as it reaches Rs 95. This type of order is known as a 'Stop Loss,' since it is used to prevent a loss greater than the amount you are willing to risk.

Stop-Loss orders come in two varieties:
1. Stop-Loss Limit (SL) order = Price + Trigger Price
2. Stop-Loss Market (SL-M) order = Only Trigger Price

Case 1: If you have a purchase position, you will maintain a sell stop loss.

Case 2: If you have a sell position, you will maintain a purchase stop loss.

In Case 1, suppose you hold a buy position at 100 and want to set a stop loss at 95.

a. SL-M order type - A Sell SL-M order with a trigger price of 95 will be placed.
When the price of 95 is reached, the exchange will receive a sell market order, and your position will be squared off at market price.
b. SL order type - A Sell SL order with price and trigger price will be placed. Because your order must first be triggered, the (trigger price.) This order type provides you with a Stop-Loss range.


Let's say the range is Rs 0.10. (10 paise). You can retain the trigger price = 95 and the price = 94.90 here.



The sell limit order is transmitted to the exchange when the price of 95 is triggered, and your order will be squared off at the next available bid above 94.90. As a result, your stop-loss order may be filled at 95 (or higher) or 94.95, but not below 94.90.
The disadvantage of this order is that if the market falls sharply, your Stop-Loss order will still be open after 95 is triggered and before the Sell Limit order of 94.90 is transmitted to the exchange if the stock price is already below 94.90. Your losses could be substantially bigger.

Depending on the market situation, you'll have to decide whether to use SL or SL-M.

In Case 2, suppose you have a sell position at 100 and want to set a stop loss at 105.

a. SL-M order type - A Buy SL-M order with a trigger price of 105 will be placed.
When the price of 105 is reached, the exchange will receive a purchase market order, and your position will be squared off at market price.
b. SL order type - A Buy SL order with a price and a trigger price will be placed. Because your order must first be triggered, (the trigger price.) This order type provides you with a stop-loss range.

Let's say the range is Rs.0.10 (10 paise). Keep trigger price = 105 and price = 105.10 in this case. The buy limit order is sent to the exchange when the price of 105 is triggered, and your order will be squared off at the next available offer below 105.10. As a result, your stop-loss order may be filled at 105.05 or 105.10, but not above 105.10.
SL order can also be used in the following ways:

Because Sell SL orders are used above your buy price and Buy SL orders are used below your sell price, you can use these order types to buy above and sell below the LTP (Last Traded Price).

1. To purchase above LTP, execute a Buy SL order with the price you wish to purchase.
2. You can sell below LTP by placing a Sell SL order with the price you want to sell at.