FAQs

Step 1: Chose Depository Participant (DP)
Choosing a depository participant (DP) is the first step to open a Demat account. In India, banks, stockbrokers, and online investment platforms offer DP services. While choosing a DP, it is advisable to go for a service provider whose services and features match your needs and requirements.

Step 2: Submit Demat Account Opening Form
Visit your DP’s website and fill out the online Demat account opening form for opening a Demat account. Many depository participants like IIFL offer the ability to open both trading and Demat accounts.

Step 3: Fulfill the KYC (Know Your CustomerA) Norms
Once you have duly filled the Demat account opening form, you will be asked to fulfil the Know Your Customer (KYC) norms. This would require you to submit scanned copies of KYC documents such as your identity proof, address proof, bank account statement, and income proof. It is a good idea to have all of the relevant documents by your side before applying, since this can help you get through the process faster.

Step 4: Go through the Verification Process
After submitting your Demat account opening form along with the requisite proofs, you will be asked by your DP to go through a process called ‘In Person Verification’ (IPV). This exercise is mandatory, and it’s carried out with the intention of verifying the authenticity of your documents. Depending on your DP, you may be asked to be present in person at any one of your service provider’s offices. However, many depository participants now offer IPV services online through the use of a webcam or a smartphone.

Step 5: Sign the Agreement Copies
Upon completion of IPV, you will be asked to sign an agreement with your DP. This agreement generally contains all the duties and rights of the depository participant and the investor.

Step 6: Get Your BO ID Number
Once this is done, your DP shall proceed to process your Demat account opening form. Upon approval of your application, you will be provided with a unique Beneficial Owner Identification Number (BO ID). This BO ID is used to access your Demat account.

Bhumika Trade offers instant account opening if you are eKYC Compliant and your Aadhar card is linked to your correct phone number. This paperless account opening is fast and convenient. Though they advertise account opening in 2 hours, practically it takes up to 2 working days to get your account opened. The challenges come in uploading supporting documents. Once you complete the online account opening process and submit the application, it goes to the Bhumika Trade team for review. Many a time they come up with additional documents required. They sent an email, SMS and call you to get this additional information. But this process takes time on both the side.

1) Up to 5 banks accounts can be linked with the Trading account. A link between a bank and Trading account is for Pay-In & Pay-Out.
2) Only 1 bank account can be linked with the Demat account. A link between bank and the Demat account is for Dividend Pay-Out. So any dividend declared by the company will be credited to the bank account linked with the Demat account.

Yes, you can start trading online as soon as your account is activated provided you have the funds in your bank account or stocks with your depository participant. Once your trading account has been opened, you can trade as well as transfer your holdings, if any, to your demat account.

It is perfectly legitimate to have multiple Demat accounts just as you can have multiple trading accounts. The only condition is that you cannot have multiple trading accounts or multiple Demat accounts with the same broker or the same DP.

An equity market is a market in which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy. It gives companies access to capital to grow their business, and investors a piece of ownership in a company with the potential to realize gains in their investment based on the company's future performance.

A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, or stockbroker. Such equity trading in large publicly traded companies may be through a stock exchange. Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets.
Stock traders can trade on their own account, called proprietary trading, or through an agent authorized to buy and sell on the owner’s behalf. Trading through an agent is usually through a stockbroker. Agents are paid a commission for performing the trade.
Major stock exchanges have market makers who help limit price variation (volatility) by buying and selling a particular company's shares on their own behalf and also on behalf of other clients.

A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds, and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends.[citation needed] Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.

To be able to trade a security on a certain stock exchange, the security must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to a physical place, as modern markets use electronic communication networks, which give them advantages of increased speed and reduced cost of transactions. Trade on an exchange is restricted to brokers who are members of the exchange. In recent years, various other trading venues, such as electronic communication networks, alternative trading systems and "dark pools" have taken much of the trading activity away from traditional stock exchanges.

Initial public offerings of stocks and bonds to investors is done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks.

There is usually no obligation for stock to be issued through the stock exchange itself, nor must stock be subsequently traded on an exchange. Such trading may be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global securities market. Stock exchanges also serve an economic function in providing liquidity to shareholders in providing an efficient means of disposing of shares.

There is no minimum limit to start investing in the Indian stock market. You simply need to have sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!

A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining in value.

1)Index Futures and Options
2)Stock Futures and Options
3)Currency Derivatives
4)Commodity Derivatives such as gold, silver, metal, energyand agricultural goods
5)Interest Rate Futures/Bond Futures

You can trade commodity futures and options through commodity exchanges like the Multi Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange Limited (NCDEX) in India AND Index Futures and Options, Stock Futures and Options, Currency Derivativesn on NSE and BSE

Margin is the money borrowed from a brokerage firm to purchase an investment. It is the difference between the total value of securities held in an investor's account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset's value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor's account act as collateral.
In a general business context, the margin is the difference between a product or service's selling price and the cost of production, or the ratio of profit to revenue. Margin can also refer to the portion of the interest rate on an adjustable-rate mortgage (ARM) added to the adjustment-index rate.

Otions

Equity investment is more likely to suit long term goals while the commodity market can be a better choice for investors eyeing short term gains. Therefore an investor most importantly should keep in mind the basic difference of ownership and holding time frame between equities and commoditie

Leverage results from using borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.

Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract in a further-out month. Futures contracts have expiration dates as opposed to stocks that trade in perpetuity. They are rolled over to a different month to avoid the costs and obligations associated with settlement of the contracts. Futures contracts are most often settled by physical settlement or cash settlement.

Yes

This option allows the retail user to initiate a funds transfer transaction. The types of funds transfer transactions include:
Self transfer (within home bank and other bank accounts)
Third party transfer (within home bank)

The annual report is published by the end of the Financial Year, and all the data made available in the annual report is dated to 31st March. The AR is usually available on the company's website (in the investor's section) as a PDF document, or one can contact the company to get a hard copy of the same.

1. Transfer funds to your trading account using payment gateway
2. Transfer funds into your trading account using RTGS / NEFT / IMPS
3. Transfer of funds into your trading account using cheque/DD