BASICS OF BASICS

DOCUMENTS REQUIRED:
1, PAN CARD (MANDATORY)
IF U DON’T HAVE PAN CARD ITS VERY SIMPLE TO GET PAN THROUGH TIN-NSDL OR UTI. BOTH HAVE MANY OFFICES IN ALL MAJOR & EVEN MINOR CITIES AS ON 2010 MARCH PAN APPLICATION COST 93 RS TAKES MAXIMUM 3 WEEKS DURATION .
IT IS NOT MANDATE TO FILE INCOME TAX IF YOU HAVE PANCARD. UNLESS YOUR INCOME EXCEEDS 1.6 LAKHS PER ANNUM THERE IS NO NEED TO FILE..

2, BANK ACCOUNT:
BANK ACCOUNT WITH NET BANKING FACILITY MAKES YOUR FUND TRANSFERRING VERY EASIER THAN EVER .
NEARLY ALL THE BANKS PROVIDE NET BANKING FACILITY NOWADAYS FOR ME BELOW MENTIONED BANKS ARE VERY GOOD FOR ONLINE NET BAKING
1.ICICI BANK (THE BEST EVER I FELT)
2. AXIS BANK
3.HDFC
4.IDBI

NET BANKING TIPS: TO DO NET BANKING , FOR NEWLY OPENED A/C ID & PASSWORD WILL BE SENT THROUGH THE A/C OPENING KIT . FOR EXISTING A/C SIMPLY WALK TO YOUR BRANCH AND CONTACT YOUR CUSTOMER CARE YOU WILL GET IN 5 WORKING DAYS
DON’T SHARE YOUR USRED ID & PASSWORD TO ANY ONE. YOU WILL BE REDIRECTED TO BANK WEBPAGE FROM YOUR TRADING A/C(MORE DETAILS BELOW ) THERE ENTER YOUR USER ID & PASSWORD AND THEN CLICK OK THEN ENTER YOUR FINAL PASSWORD (TRANSACTION)
IMPORTANT NEVER CLOSE THE WINDOW UNTIL YOU GET SUCCESS MESSAGE. AND ALSO CHECK FOR YOUR BALANCE BEFORE YOU RETRY IF AN FAULTS OCCUR.
IF YOU FIND YOUR FUND MISSING BY DON’T WORRY CONTACT CUSTOMER CARE TO SLOVE YOUR PROBLEM MAXIMUM 1 DAY.
*BENEFITS OF NET BANKING NO NEED OF “CHECK CLEARANCE” WAITING PERIOD IT TAKES A MINUTE . YOU CAN FUND TRANSFER EVEN 10 RS.*

DEMAT & TRADING A/C:
BOTH ARE LIKE TWINS BUT THEIR WORKS DIFFER.

DEMAT:
DEMAT IS CALLED BECAUSE OF “DEMATERLISATION ’ FORM .
WHICH MEANS PREVIOUSLY THERE ARE ONLY SHARE CERTIFICATES BUT IN RECENT YEARS ALL CERTIFIFCATES ARE “DEMARTERIALISED” AND CONVERTED IN TO ELECTRONIC FORMAT . INTEAD OF HOLDING 1000 SHARE CERTIFICATES JUST 1000 NOS IN YOUR DEMAT A/C NO NEED TO PRESERVE IT FROM FIRE, WATER AND ALL KIND OF THREATS ..
PEOPLE WHO HAVE SHARE CERTIFICATES STILL CAN CONVERT THEM IN TO DEMAT ACCOUNT(A/C) THROUGH DEMATERIALISATION REQUEST FORM FROM ANNY SHARE BROOKER AFTER OPENING DEMAT A.C WITH THEM .

SOME CLEARANCE IN DEMAT A/C:
ONE CAN OPEN EVEN 10 DEMAT ACCOUNT AND ALSO LINK HIS ONE DEMAT A/C WITH MANY SHARE BROOKERS (SHARE BROOKERS DETRAILS BELOW)
EVERY BROOKER WILL CHARGE AMC (ANNUAL MAINTAINANCE CHARGE) CHARGES DIFFER FROM 200 RS TO 1000 RS SO ITS WISE TO OPEN ONE A/C NOT TO COVERED BY NEW OFFERS OF NEW BROOKERS.
DEMAT A/C IS VERY MUCH SAFER AS YOUR BANK A/C SO NO NEED TO WORRY ABOUT YOUR SHARES IT WILL BE ALWAYS SAFE THERE

TRADING A/C :
IT IS ALWAYS LINKED WITH DEMAT A/C + BANK A/C . FUND(MONEY ) YOU TRANSFER FROM BANK WILL BE IN THIS ACCOUNT AS CASH IN LEDGER .
IF YOU BUY ANY SHARES AMOUNT WILL BE DEDUCTED IN YOUR TRADING A/C AND SHARES WILL CREDITED IN YOUR DEMAT A/C
IF YOU SELL ANY SHARES , SHARES WILL BE CREDITED AND AMOUNT WILL BE CREDITED IN YOUR TRADING A/C
THERE IS NO CHARGES FOR THIS A/C FROM BROOKER END.

EXAMPLE: HOW BANK A/C, TRADING A/C & DEMAT A/C LINKED & WORKS

STEP1: BANK A/C: YOU ARE HAVING 100 RS

STEP 2: YOU ARE TRANSFERING FUND (RS 100) FROM BANK A/C TO TRADING A/C BY NET BANKING OR CHECK DEPOSIT

STEP 3: BUYING SHARES THROUGH THE FUND IN TRADING A/C (EX: BOUGHT ABC COMPANY 1 SHARE @ RS 100)

STEP 4: SHARES ARE CREDITED IN YOUR DEMAT A/C (ABC SHARE 1 QTY)

STEP 5:YOU ARE SELLING SHARES IN DEMAT A/C SHARES DISAPPEARS FROM DEMAT A/C

STEP 6: NOW THE CASH OF SOLD VALUE (NO. OF SHARES * SOLD PRICE) IS IN TRADING A/C(1 * 105 = 105)

STEP 7: FUND IS WITH DRAWN FROM TRADING A/C TO BANK A/C AFTER SUCCESSFULL REQUEST THROUGH YOUR BROOKER.(RS 105 IS NOW IN BANK A/C)

THIS EXAMPLE VERY BRIEF AND ENOUGH OR EVEN OVER DOSE

SHARE BROOKERS:
PEOPLE WHO CONNECTS “WE AND STOCK EXCHANGE” ARE CALLED AS.SHARE BROOKERS. THEY ARE NEARLY LARGE NOS IN INDIA AND STILL NEW PLAYERS EMERGE ALMOST EVERY YEAR .
THEY ARE COMPLETELY CONTROLLED “SEBI”(SECURITIES EXCHANGE BOARD OF INDIA ) & NSE (NATIONAL STOCK EXCHANGE ) BSE(BOMBAY STOCK EXCHANGE ).
THEY ARE MEDIATORS FOR BUYING & SELLING ALL KIND OF STOCKS FROM A GROUP TO Z GROUP (DETAILS LATER)

SOME CLEARANCE REGARDING BROOKERS:
BROOKERS FOR DEVELOPING THEIR BUSINESS LAUNCH MANY SUB BROOKING OFFICE IN MANY TOWNS . THERE IS NO DIFFERENCE BETWEEN BOTH OF THEM BUT IN SOME BROOKING HOUSES (SHARE BROOKERS) THEY OFFER MORE FOR DIRECT CLIENTS THAN SUB-BROOKING CLIENTS.
NO ONE CAN PLACE ORDERS WITHOUT BROOKERS BUT THEY NEVER
INTERFEAR IN YOUR PRICE WHETHER BUYING OR SELLING UNLESS YOU ASK FOR THEIR NEED.
CHARGES OF BROOKERS DIFFERENT FROM COMPANY TO COMPANY

MINIMUM 0.1 PAISE TO MAX. 0.10 PAISE FOR INTRA DAY(DETAILS LATER)

MINIMUM 10 PAISE TO 1 RUPEE FOR DELIVERY (DETAILS LATER )

MY SUGGESTION TO GO WITH

1. INDIA INFOLINE
2. ANANTH RATHI
3. APOLLO SINDHOORI
AND ALSO
4. RELAINCE MONEY COMPANY THAT I WORKED WITH
RELIANCE MONEY OFFERS MOST SECURED TRADING THAT NO ONE CAN VIEW YOU’RE A/C WITHOUT YOUR SECURITY KEY .IT ALWAYS CONFUSING FOR PEOPLE WHO DON’T FEEL COMFORT WITH IT


THIS IS THE END OF BASIC LESSON 1. OFFCOURSE THIS LESSON IS JUST OPENING OF A/C . NO CLEAR IN STOCK MARKET OR SHARE TRADING NEXT LESSON CLEAR VIEW ON STOCK MARKET