How to trade online using demat account
What is a Settlement cycle? Please refer Learning Centre. If I have purchased a share, do I have to take delivery? No you can choose to sell the share before the end of settlement cycle.
However once the settlement cycle is over you have to take delivery by paying for it. If I have sold, do I have to give delivery of shares? No you can choose to buy the share before the end of settlement cycle.
However once the settlement cycle is over you have to give the delivery of shares from your Demat account. I buy a share, how will the payment be made and how will I get the shares? The payment will be made on the Pay-In day which depends on the settlement cycle and the exchange. The shares received from the exchange will be automatically transferred to your Demat Account.
The money required for purchase will be transferred from your Bank account. A similar process takes place when you sell the share. I have bought some shares but some amount has not been deducted from my Bank Account? The amount will be deducted from your bank account at the time of settlement.
At times, however, the share may be in 'No Delivery' and hence the payment may need to be made after the 'No Delivery Period' is over, which might be weeks away. The date on which amount is to be deducted from your account can be checked from the 'Cash Projection' page.
I have bought some shares but shares have not come into my demat account? The shares will come into your demat account at the time of settlement. Hence you can expect the shares to come into your Demat account on Pay-Out of securities i.
In case you do not receive the shares, it may be due to the stock being in 'No Delivery' period. In this case the shares will come from the exchange after the 'No Delivery' period is over which could be weeks away. The date on which the shares are to be credited to your Demat Account is indicated on the Order verification screen which comes up on submitting a Sell order. Alternatively, it is possible that the shares may not have come from the exchange because of short delivery by the counter party selling broker..
In this case, the exchange conducts an auction to buy the shares to the extent delivered short by any broker from the open market and the shares may be received a few days later. If the shares are not received in an auction also, the exchange suitably charges penalty from the person liable to deliver the shares. You are suitably compensated and the consideration is remitted to you as soon as it is received from the exchange.
I have sold some shares but the payment has not come into my bank account? The amount will be come into your bank account at the time of settlement. At times, however, the share may be in 'No Delivery' and hence the payment may be received only after the 'No Delivery Period' is over, which might be weeks away.
The date on which amount is to be credited to your account can be checked from the 'Security Projections' page.
I have bought some shares but they still have not come to demat account. Can I sell them? If you are within the same settlement cycle in which you purchased the shares you can sell them. Or else you can also sell the share using the BTST facility available.
What is a short delivery? Short delivery refers to a situation where a client, who has sold certain shares during a settlement cycle fails to deliver the shares to the member either fully or partly.
What is an auction? An auction is a mechanism utilised by the exchange to fulfil its obligation towards the buying trading members. Thus, in case for a settlement, the selling trading members have delivered short, their deliveries are bad or they have not rectified the company objection reported against them, the exchange purchases the requisite quantity from the market and gives them to the original buying member.
Auctions are generally held on Friday. What factors give rise to an auction? There are three factors, which primarily give rise to an auction: Un-rectified Bad Deliveries - this is relevant only in respect of shares in physical form 3. What happens if the shares are not bought in the auction? If the shares could not be bought in the auction i. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction. In case the price movement is adverse, you incur a loss.
However, margins are blocked only to safeguard against any adverse price movement. At present, you have to place However, the risk profile of your transactions goes up. How is margin trading different from trading in Cash segment? For example, when you place an order to buy shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your Demat Account.
However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same.
However, if the price falls subsequently, there may be a loss. Since a cash position is meant to be settled by delivery, the required cash or securities are blocked in full. A sell order in the margin segment can be placed even without having any stock in demat account.
However, unlike the sell order in the cash segment which can be placed without having any limit, a sell order in margin can be placed only if sufficient limit is available.
The most important thing to understand is that though you can leverage on your trading limit with margin trading, the risk profile of your transactions goes up substantially. Which stocks are eligible for margin trading? Why is the stock list restricted to specific scrips only? At present, we have enabled select shares for trading in the margin segment. Only those stocks, which meet the criteria on liquidity and volume have been considered for margin trading.
Technically, the stocks having low impact cost have been considered for margin trading. Technically, the stocks having low impact cost have been included.
In the "Buy" and "Sell" page, you need to opt for "Margin" in the "Product" drop down box. All other order parameters remain the same. In case you face any problem, you please refer to the "Help" section on the page. Can I short sell the shares i. Yes, you can short sell the shares in margin segment.
Do you block the shares in DP when a sell order is placed in the margin segment? Unlike the sell order in the cash segment, there is no block on your holdings in the demat account. How much margin would be blocked on placing the margin order? Initially, margin is blocked at the applicable margin percentage of the order value.
For market orders, margin is blocked considering the order price as the last traded price of the stock. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order. It may not be so. Margin percentage may differ from stock to stock and settlement to settlement based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective stock besides the general market conditions. What is meant by 'squaring off a position'?
What is a cover order? Squaring off a position means closing out a margin position. For example, if you have a margin buy position of Reliance Shares', squaring off this position would mean selling Reliance shares in the same settlement. The order placed for squaring off an open position is called a cover order. In the example, the order placed to sell Reliance shares is a cover order against the open position - 'Bought Reliance Shares'.
Is margin blocked on all margin orders? Margin is blocked only on margin orders, which are in the nature of building up fresh positions. For example, if you have a buy position executed trade of shares in Reliance in margin and now place a sell order for shares in Reliance in margin, the sell order would not attract any margin as it is in the nature of a cover order.
However, if you place a sell order for shares, the fresh component of the order i. Such orders can be called 'partial cover order'. Please note that cover order is recognized only against the executed open position and not against pending order. For example, if you have a pending buy order of shares in TISCO and want to place a sell order of shares in TISCO at a higher price, the sell order would not be recognized as a cover order and shall accordingly attract margin.
If it is an execution of a fresh order i. Accordingly the limits are adjusted for differential margin. If it is an execution of a cover order order which would result into square off of an existing open position in margin , the following impact would be factored into the limits: How do I differentiate between margin orders and cash orders in the order book?
Margin orders are displayed with a yellow background while cash orders are displayed with a white background to distinguish between the two order types. How do I see my open positions in margin? You can view all open margin positions by clicking on "Margin Positions" on the trading page.
How do I place a square off order in margin to cover my open positions? How does the profit and loss recognized on execution of square up cover orders? For example, say you have a margin position - 'Buy Reliance Shares' at an average price of Rs. If you square off a part of the position by selling 60 Reliance Shares Rs. What is meant by 'Convert to Delivery'? Can I choose not to square off a margin position?
Margin positions are meant to be squared off. However, if you want, you can choose to receive or give delivery of shares against your positions. The expression of this intention is 'Convert to Delivery'. For example, if you have a margin position of 'Buy Reliance Shares', instead of squaring off this position by selling Reliance shares in the same settlement, you can choose to receive delivery against the same.
You can convert even a part of the total quantity of How do I convert my margin position into delivery cash segment? Only the position in margin can be converted to delivery cash and not vice versa. Can I convert my pending margin order into an Order for Cash Segment?
Only the executed margin position can be converted to delivery cash segment and not the pending orders in margin. In such case, you can cancel your margin order and place a fresh order in cash. Is there any additional brokerage charged on margin positions converted to delivery? All margin positions converted to delivery shall attract additional brokerage for the difference in the brokerage applicable for margin and cash segment.
When do you release the margins blocked on margin positions? When the margin position is closed out either by squaring off or converting to delivery , the proportionate margin blocked on the position so squared off is released back and added to the limits.
How does 'conversion to delivery' impact limits? On converting a 'Sell' position to delivery, the converted quantity is blocked in your Demat account. Threshold MTM mark to market Loss percentage is the maximum loss percentage up to which additional margin shall not be called for. Once the actual MTM loss percentage exceeds the threshold MTM loss percentage, our system would block additional margin required from the limit available.
The scrip will be disabled from further trading in the margin segment. If the scrip is in positive compared with the previous trading day closing price, then all pending sale orders will be cancelled and all short positions will be squared off at market price. Similarly, If the scrip is in negative compared with the previous trading day closing price then all pending buy orders will be cancelled and all the long positions will be squared off at market price.
How do you calculate additional margin required when the MTM loss is more than the threshold per cent? The available margin on the stock as per the "Margin Position" table is first reduced by the actual MTM loss amount to arrive at the effective available margin. The effective available margin is compared with the margin required to continue with the position i. Current market price at the applicable margin percentage and the difference is called for as Additional Margin.
For example say you have bought shares of XYZ at Rs. You would be having a margin of Rs. The current market price is now say Rs. Additional margin to be calculated as follows: If the limit is not sufficient to meet the call for additional margins, ICICIdirect may close out the margin position by placing a market square off order.
However, before placing the square off order all pending margin orders in that stock are cancelled by ICICIdirect.
How do you call for additional margin during the MTM process? Once the MTM loss percentage exceeds the threshold MTM loss percentage, our system would block additional margin required out of the limits available. What happens if limits are not sufficient to meet the additional margin requirements? Our risk monitoring system can place a market square off order to close the position.
However, before placing the square off order all pending margin orders in that stock shall be cancelled by our risk monitoring system. What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account? While making an online check for available additional margin, our system would restrict itself only to the extent of trading limit and would not absorb any amount out of un-allocated funds so as to keep your normal banking operations undisturbed.
It is, therefore, advisable to have adequate surplus funds allocated for trading when you have open margin positions. Can I do anything to safeguard the positions from being closed out? Yes, you can always allocate additional margin, suo moto, on any open margin position. Since the close-out process is triggered when losses exceed the threshold level and available margin is less than the margin required, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position.
You can add margin to your position by clicking on "Add Margin" on the "Margin Position" page by specifying the margin amount to be allocated further. In case of profit on a margin position or where the Available Margin is in excess of the Margin Required, can I reduce the margin against the position to increase my limit? Margin though in excess of the requirements cannot be reduced by you.
The only way margin is released is by canceling the margin order where margin is blocked against a margin order or by closing out a margin position where margin is blocked against a margin position. Is it compulsory to square off the position within the settlement? It is compulsory to square off all your open positions net of what has already been converted to delivery within the settlement.
What is the stipulated time limit up to which the margin positions need to be compulsorily squared off? The stipulated time for end of settlement process will be displayed on the margin position page of our site on the last day of settlement.
Can I do convert my margin position to Delivery Cash segment instead of squaring up the position before the time limit expires? Yes, you can do so at any time before the stipulated time limit. In case the stock is in No Delivery, Can I have extended period to square up my position? What happens if I do not square off my position before the stipulated time limit on the last day of the settlement? In such a case, our risk monitoring system shall have the option to place an auto square off order to close out your open position.
What happens if for some reason a margin position remains open at the end of settlement? Our risk monitoring system would square off the position but the onus lies on you to close out all open positions.
The registered shareholders of the company are entitled to corporate benefits such as dividend, bonus, rights etc. Since, the ownership of shares of companies traded on the stock exchange is freely transferable and to enable the company to know the persons entitled to the benefits, all transfers of securities have to be registered with the company this is required in case of transfer of shares in physical form.
Since transfer of securities is a continuous process open any time, the company announces cut off dates from time to time and members on the register of shareholders as of these cut off dates are entitled to the benefits. Such cut-off dates are record dates. Alternatively, the company might choose the close the register of shareholders for registration of transfer during a specified period. All transfer requests received before the commencement of the book closure or on or before the record date are considered for the purpose of transfer.
A Company cannot close its books for more than 30 days at stretch for a book closure, and not more 45 days in a year. The period between two Book Closure cannot be less than 90 days.
What is the difference between book-closure and record-date? During this period, the company had closed its register of security holders. This was done to determine the number of registered members who were eligible for the Bonus 3: The process of transfer of shares was operational till 5th July' During this period, trading was permitted in the securities but the trades were settled only after 9th July. Hence, the buyers of the shares were not be eligible for the Bonus 3: The first day of the No Delivery period is considered as an Ex - Date since the buyer of the shares is not eligible for the corporate benefits for this BC.
The same logic holds good for Record date, but the two main differences are that: In case of a record date, the company does not close its register of security holders. What is a 'No Delivery' period? Whenever, a book closure or a record date is announced by a company, the exchange sets up a 'No Delivery' period for that security. During this period, trading is permitted in the security. However, these trades are settled only after the No-Delivery period is over.
The start of No-Delivery period is the ex-date of the settlement. The settlement is clubbed with the settlement of the week whose pay-out date falls just after the end of the no-delivery period. This is done to ensure that investor's entitlement for the corporate benefits is clearly determined.
No-delivery period generally extends to all weekly cycles touched from 15 days prior to the record date and 4 days subsequent to the record date both inclusive. What is an ex-date? The first day of the 'No Delivery' period is the ex-date viz. The ordinary and NPP shares of the company thus carry disproportionate rights as to dividend, although their market price remains the same. To compensate, the buyer to whom these new shares are delivered, for loss of pro rata dividend, the NPP benefit is passed on to the buyer of these NPP shares.
Thus if you sell of NPP shares you will have to pay, the dividend declared in respect of ordinary shares and this NPP amount shall be deducted from the sale price. This old-new compensatory value ONCV is referred to as 'new share dividend'.
The Exchange publishes a list of the scrips that are eligible to receive pro-rata dividend non pari-passu per settlement. The list contains the details pertaining to the distinctive nos. Research And Other Resources. What other resources will the site offer me to help in taking smarter online investment decisions? Our site will offer you a comprehensive set of resources like online quotes, news, charts, financial databases, company reports, earnings estimates and a host of research based tools to help you make better decisions.
We will also offer a comprehensive markets page where you can get to the latest update on markets, trends, news and events affecting the markets. Please ensure that the ARN is written on your application form. This ARN will be used for tracking the customer registration request. We will inform you when your application is processed and your account is set up. Once your account is set up, we will inform you by e-mail and you will be prompted to change your Password, the fist time you login after your account is set up.
If you have filled up the application forms for E-invest account directly without registering on the site, We would dispatch your LOGON-id and password by normal post in a sealed envelope.
Prevent Unauthorized Transactions in your demat account. Update your Mobile Number with your Depository Participant. Issued in the interest of investors. All decisions to purchase or sell securities shall be made by the customers on the basis of their personal independent judgement. Investment in securities is subject to market risks and value of the securities can go up or down depending on the various factors and forces affecting the capital and money markets.
Yield or securities past performance should not be considered as an indication or guarantee of future yield or results. The Bank shall not be responsible or liable for and is not related in any manner whatsoever with the operation of the broking account or any related services by Sharekhan. This invitation is subject to the terms and conditions mentioned in the client registration form and the website. Sitemap Print Search Apply Now. Deutsche Bank customers will be eligible for low brokerage rates between 0.
Advanced and relevant stock research from Sharekhan will help you make informed investment decisions. Buy or sell even 1 share: Now trade without any minimum trade value. Sharekhan allows you to buy or sell even one share. Place after market hour orders: Immediate confirmation of order: To-the-second update on your orders helps you manage transactions that much more easily. Experience seamless online trading with maximum security that conform to our global standards.
Keep track of the value of actual purchases on an upto-the-second basis. Personalized price and account alerts: Now stay connected even if you are not online.
Prompt and dedicated Customer Service: Instant credit against sale: Get instant credit for executed sale transactions in your Online Trading account with Sharekhan. Trading with exposure A facility that allows you to trade in multiples of the amount in your online trading account. DP to margin facility Now avail of trading limits to make new stock purchases, against approved stocks earmarked in favour with Sharekhan.
Short-selling This feature from Sharekhan allows you to sell scrips not present in your Demat Account at the time of placing the short sell request. Selling against Receivables Now sell shares on the very next day of purchasing them. Type of accounts We understand that different people have different needs. Sharekhan Classic Account Platform. Sharekhan Fast Trade Account Platinum. In addition to all benefits of a Classic Account, here you receive updated information in the form of streaming quotes from Sharekhan, without refreshing the screen.
Suitable for retail investors who are risk averse, invest long-term but trade more often. It is an internet based software that can accessed anywhere from an internet enabled computer. Sharekhan Trade Tiger Account Platform. Suitable for active traders providing them various advanced tools for share trading like charts, graphs and user defined alert settings.
It is an EXE based software installed in your computer by Sharekhan and acts as your personal Desktop Terminal to access the stock market. Who can open an Online Trading account? Following customers are eligible to open an Online Trading account: Buying and Selling Buying securities. Login into db OnlineBanking and check your available fund balance. You will be re-directed to www.
Once on Sharekhan login page, enter your trading Login ID and password. After you confirm the order details, your request will be submitted to the stock exchange and you can view the execution status of your orders online, as and when they are executed. Pre-requisites for purchase of securities in Equity Segment: Adequate free available fund balance in active Savings Account. Active Demat Account and Sharekhan online banking account.
All payout request placed after 1: Login into db OnlineBanking. Pre-requisites for sale of securities: Adequate free available scrip balance in active Demat Account. Active Savings Acount and Sharekhan online banking account. All scrips which have been blocked in favour of Sharekhan but have not been traded during market hours on any particular trading day, will be unblocked from your Demat Account. Alternatively you can also place a request on the Sharekhan website to unblock the desired non-transacted securities.
Brokerage tariffs by Sharekhan Sharekhan offers two customised options designed for Deutsche Bank customers. Demat charges Demat charges are given below.