Benefits of MF-IN-DEMAT

Benefits of MF-IN-DEMAT

• Simplicity & ease : You can purchase / redeem / flexi SIP in over 1,000 schemes through NSE.
• Instant order placement : Now you can place or modify orders instantly between 9.00 am and 2.00 pm.
• Dematerialised mutual fund units : You can transfer your existing mutual fund portfolio to your demat account.
• Single view of all your holdings : You will have a consolidated demat statement showing a single view of all your holdings in equities and mutual funds across AMCs.
• Instant transaction proof : You can view order details instantaneously on placing orders on the MF-IN-DEMAT platform.
• No additional KYC : For demat account holders, no additional KYC is needed.

Systematic Investment Plan (SIP)

• Disciplined investing : Through SIP you can choose to invest fixed amounts (as low as Rs500) in a mutual fund scheme at regular intervals (like every month or every quarter) for a chosen period of time (say for a year).
• Accumulate wealth : Set aside a small amount every month through SIP and achieve financial goals like buying a car or a house.
• Beat inflation : Equity investing can help you combat inflation that diminishes the value of your savings.
• Rupee cost averaging : A regular investment in a mutual fund scheme can reduce the cost of acquiring mutual fund units over a longer period as you end up buying more units when the price is low and fewer units when the price is high.
• Fewer efforts : You can start an SIP by simply placing an order by logging on to Sharekhan's online mutual fund page. Click on the "SIP" button and fill in the SIP amount, SIP date etc and provide the information asked by the system.

Tax-saving mutual fund schemes

• Tax waiver (ELSS) : Tax benefit on investments up to Rs100,000.
• Lower lock-in-period : These schemes have a lower lock-in period of three years compared to the other tax saving avenues. A mandatory lock-in for three years inculcates a long-term investment habit.
• Superior return : Investments in equity over a long term have historically delivered better returns than the "guaranteed return" avenues.
• Tax-free gain : Dividends and long-term gains are tax-free (these schemes give you the twin options of tax savings and capital gains).
• SIP : Investors can opt for a systematic investment plan and keep on investing small amounts periodically, say on a monthly basis.

Index Fund :

• A passively managed mutual fund that specialises in the purchase of securities that match or represent a specific index and tries to mirror the performance of a specific index, such as the BSE Sensex. Since portfolio decisions are automatic and transactions are infrequent, expenses tend to be lower than those of actively managed funds.

How to place orders in Sharekhan MF–IN-DEMAT

• Log on to www.sharekhan.com and click on “Login”.  
• Click on “Mutual Funds”.
• A welcome screen will be displayed after accepting terms and conditions.
• For the first time log in on the online mutual fund page; click and accept terms and conditions.
• Click on “Place Order”.
• Transfer funds from the bank account to the mutual fund pool account or allocate funds from the trading account to the mutual funds pool account.
• Select scheme available under MF-IN-DEMAT and confirm order.
• Successful order placement page is displayed.

Difference Between Trading A/c. & Demat A/c.

Demat accounts are electronic account forms where you can store all the fund, equities and shares you have purchased from the stock market. Therefore, you need not keep all the share certifications with you. You can convert your physical shares into dematerialized form and keep them in the Demat A/c. A trading account is an online account through which you can make purchase or sale of shares, funds and equities. The trading account is linked to Demat A/c. as it needs access to your shares documents while trading. However, in nature the Demat account. is similar to a savings account while the trading account is the current account of an individual in the stock market

Demat is generally for the people who would like to invest in the market and hold the shares in the Electronic form whereas trading account is mostly for traders in derivative segment (Index, Stocks,Commodities, Currencies futures and Options) and those who trade intraday in Cash Segment. Trading account doesn’t attracts any AMC charges whereas demat account attracts AMC charges and generally depends upon the Sharebroker.

What is dematerialization?

The dematerialization system is an alternative to the physical existence of securities, where securities are converted in the electronic form and deposited in a depository account in the investor’s name

What is the need for dematerialization?

The need for an alternative to physical securities arose because dealing in paper entailed risks such as loss in transit, delays in deliveries, theft, forgeries and mutilation of certificates. Also transfer of ownership took very long and there was settlement risk besides the paper work involved. Conversion of securities in the electronic form eliminates these problems

Ways to open the respective accounts

You need to go to the depository participant to open a demat account. You have to fill up the booklet or form required to open a demat account. The cost involved in opening as demat account includes four major charges that are account opening fee, custodian fee, account maintenance fee, and a transaction fee. In addition to this service charge has to be paid to the depository participant. For having a trading account, you already need to have a previous savings account and a demat account. The trading account can be easily opened with little or no account opening security deposit. It just requires having an earlier demat account.

Uses of the accounts

Demat account is to be used only for saving of shares and not for transaction. The main transaction (buying or selling) of shares is done through the trading account. When you purchased the share from the seller the money come into trading account from your savings account the shares bought come from traders and stock market into the trading account. The shares purchased are then transferred from trading account to demat account. During the transaction demat account only comes in the scene with the inflow or outflow of shares from it. However, there are certain misconceptions and confusions regarding their use among consumers.

Difference illustrated with example

The demat account and trading account difference can be illustrated by the following example. If you have a stock A it stays in the demat account in electronic form. Now you intend to buy stock B. In this case, you first transfer money to the trading account. With the help of money from savings account, you buy stock B from trader or stock market. You send the money to the seller and purchases stock B which then goes into the demat account. Moreover, if you want to sell A then A will get transferred from the demat account to the trading account. After the sale of over the money earned is transferred to the savings account.

Demat account stays secured with trading account

The demat account is of two types. One with Power of Attorney and another is without Power of Attorney. In the first case, the broker deducts shares on selling from demat account while in the second case you have to provide delivery instruction to a broker before selling otherwise your shares will go for auction. Hence, the former is a safer one where the shares are securely sold through broker. In a trading account, you don’t face this problem. You have a username and password with which you login and sell the shares and buy shares through this account without any broker interference.

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I   New Government Policy Push

• (Roads/Power/Logistics)

        Companies: L&T, IRB infra , UltraTech, GDL

• PSU re-rating 

        Companies: Container Corporation, ONGC

• Economy revival leading sectors (auto/financials/Consumer Discretionary)  

        Companies: ICICI Bank, SBI, M&Mahindra,TataMotors(DVR) & Network18

• Stable Stocks

            Companies: TCS, Sun Pharma, Torrent Pharma

Larsen & Toubro     CMP 1495     Target 3800

Cummins               CMP 691        Target 1708

Finolex Cables        CMP 210        Target 650

IRB Infra                CMP 235        Target 680

Gateway Distripark CMP 253        Target 745

Selan Exploration    CMP 470        Target 1680

 
II   Early gainers of economic revival (Banks & Auto)

ICICI Bank              CMP 1537       Target 3850

State Bank of India CMP 2570       Target 5800

PTC India Financials CMP 43         Target 105

Ashok Leyland          CMP 44         Target 90

Tata Motors - DVR    CMP 315       Target 850

Gabriel India            CMP 79         Target 155
 

III   Evergreen stocks/Other bottom up picks

Sun Pharma           CMP 802         Target 1550

TCS                      CMP 2423        Target 5100

Dhanuka Agri        CMP 437          Target 1140

Network 18 Media CMP 46            Target 150

Revision in Market Lot of Derivative Contracts on Individual Stocks

In pursuance of SEBI guidelines for periodic revision of lot sizes for derivatives contracts specified in the SEBI circular no. CIR/MRD/DP/17/2014 dated May 20, 2014, the market lots of derivatives contracts on individual stocks shall be revised with effect from October 31, 2014.

 

Kindly refer the circular and below list for more details.

 

Revised Downwards
Effective date : October 31, 2014 (for all expiries)
Sr No	Underlying	Symbol	Present Market Lot	Revised Market Lot
1	ADANI ENTERPRISES LIMITED	ADANIENT	1000	500
2	ADANI PORTS AND SPECIAL ECONOMIC ZONE LIMITED	ADANIPORTS	2000	1000
3	ALLAHABAD BANK	ALBK	4000	2000
4	AMBUJA CEMENTS LIMITED	AMBUJACEM	2000	1000
5	ARVIND LIMITED	ARVIND	2000	1000
6	AUROBINDO PHARMA LIMITED	AUROPHARMA	500	250
7	BANK OF BARODA	BANKBARODA	500	250
8	BHARAT FORGE LIMITED	BHARATFORG	1000	250
9	BHARTI AIRTEL LIMITED	BHARTIARTL	1000	500
10	BHARAT HEAVY ELECTRICALS LIMITED	BHEL	2000	1000
11	CENTURY TEXTILES & INDUSTRIES LIMITED	CENTURYTEX	1000	500
12	CIPLA LIMITED	CIPLA	1000	500
13	COLGATE PALMOLIVE (INDIA) LIMITED	COLPAL	250	125
14	CROMPTON  GREAVES LIMITED	CROMPGREAV	2000	1000
15	DABUR INDIA LIMITED	DABUR	2000	1000
16	DISH TV INDIA LIMITED	DISHTV	8000	4000
17	DIVI'S LABORATORIES LIMITED	DIVISLAB	250	125
18	THE FEDERAL BANK  LIMITED	FEDERALBNK	4000	2000
19	GAIL (INDIA) LIMITED	GAIL	1000	500
20	HCL TECHNOLOGIES LIMITED	HCLTECH	250	125
21	HDFC BANK LIMITED	HDFCBANK	500	250
22	HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED	HDIL	8000	4000
23	HINDUSTAN PETROLEUM CORPORATION LIMITED	HINDPETRO	1000	500
24	INDRAPRASTHA GAS LIMITED	IGL	1000	500
25	THE INDIA CEMENTS LIMITED	INDIACEM	4000	2000
26	INDIAN OVERSEAS BANK	IOB	8000	4000
27	IRB INFRASTRUCTURE DEVELOPERS LIMITED	IRB	4000	1000
28	KOTAK MAHINDRA BANK LIMITED	KOTAKBANK	500	250
29	MOTHERSON SUMI SYSTEMS LIMITED	MOTHERSUMI	1000	500
30	OIL & NATURAL GAS CORPORATION LIMITED	ONGC	1000	500
31	ORIENTAL BANK OF COMMERCE	ORIENTBANK	2000	1000
32	POWER FINANCE CORPORATION LIMITED	PFC	2000	1000
33	PUNJAB NATIONAL BANK	PNB	500	250
34	RANBAXY LABORATORIES LIMITED	RANBAXY	1000	500
35	RELIANCE CAPITAL LIMITED	RELCAPITAL	1000	500
36	SIEMENS LIMITED	SIEMENS	500	250
37	SHRIRAM TRANSPORT FINANCE COMPANY LIMITED	SRTRANSFIN	500	250
38	SESA STERLITE LIMITED	SSLT	2000	1000
39	SUN PHARMACEUTICALS INDUSTRIES LIMITED	SUNPHARMA	500	250
40	SYNDICATE BANK	SYNDIBANK	4000	2000
41	TATA MOTORS LIMITED	TATAMOTORS	1000	500
42	TATA MOTORS LIMITED	TATAMTRDVR	2000	1000
43	TATA STEEL LIMITED	TATASTEEL	1000	500
44	TVS MOTOR COMPANY LIMITED	TVSMOTOR	2000	1000
45	UNION BANK OF INDIA	UNIONBANK	2000	1000
46	UPL LIMITED	UPL	2000	1000
47	VOLTAS LIMITED	VOLTAS	2000	1000
48	YES BANK LIMITED	YESBANK	1000	500
Revised Downwards but new lot size is not a multiple of old lot size
Effective date : October 31, 2014 (for January 2015 & later expiries)
Sr No	Underlying	Symbol	Present Market Lot	Revised Market Lot
1	ASHOK LEYLAND LIMITED	ASHOKLEY	11000	8000
2	AXIS BANK LIMITED	AXISBANK	1250	500
3	GMR INFRASTRUCTURE LIMITED	GMRINFRA	10000	9000
4	HAVELLS INDIA LIMITED	HAVELLS	1250	1000
5	IFCI LIMITED	IFCI	9000	8000
6	NHPC LIMITED	NHPC	12000	10000
7	UNITECH LIMITED	UNITECH	17000	9000
Revised Upwards
Effective date : October 31, 2014 (for January 2015 & later expiries)
Sr No	Underlying	Symbol	Present Market Lot	Revised Market Lot
1	UNITED BREWERIES LIMITED	UBL	250	500

 

The IPO Shemaroo Entertainment closes flat at Rs 171/share on Day1 October 01 at Rs 180pershare on the BSE

Shares of Shemaroo Entertainment stock opened at Rs.180pershare on the bourses with gains of around 6% but soon settled down to Rs.171pershare within minutes of listing. The company primarily engaged in film & entertainment business entered the capital market with an IPO of 27182239 shares in the price band of Rs 155-170 in order to raise around Rs 100 crore. The share was touched an intraday high of Rs 181 and an intraday low of Rs 171 on the listing day.

The IPO was subscribed 7.26 times with qualified institutional buyers (QIBs) 5.7 times subscription. Retail individual investors subscribed 7.54 times while high net individuals subscribed 8.64 times. The proceeds from the issue would be utilised to fund working capital requirements and general corporate purpose. The lead managers of the issue are Yes Bank and ICICI Securities. The content library consists of more than 1000 titles spanning new Hindi films like Ishqiya, Slumdog Millionaire, Ajab Prem Ki Ghazab Kahani, Omkara, Dil toh Baccha hai, Chandni Chowk to China, Bheja Fry 2. It also has rights of Hindi films classics like Mughal-e-Azam, Shree 420, Mera Naam Joker, Amar Akbar Anthony, Namak Halaal, Kaalia, Madhumati, titles in various other regional languages like Marathi, Gujarati, Punjabi, Bengali and a variety of non-film content.

The IPO market is all heated up this year. Three IPOs Wonderla Holidays, Snowman Logistics and Sharda Cropchem saw stellar listing.

What is Multibagger and Bluechip stock?

Multibagger

The word multi-bagger is derived from the phrase “bag something” which means to catch something or to win something. So in terms of stocks, it simply means that the stock is really good and it will give you great returns.

Bluechip
The phrase “blue chip” is actually derived from the game of poker, in which traditionally the blue chips were the highest valued chips in the game of poker. A blue chip stock is considered to be among the best stocks in the index or the sector. If you have a blue chip to bet with, you’re still in the game.

Timings of SGXNIFTY ? Very few knew abt this ...!!!!

SGXNIFTY Timings 
Primary session is between 6:30 am to 3:40 am IST,
Post that there is a T1 session 4.30 pm to 11.30 pm

IRB promoter’s case of alleged involvement in killing of an activist up for hearing soon; sentimentally negative and any negative outcome of court case can dramatically dent fortunes of company

IRB Infra’s promoter Virendra Maiskar was alleged to have been involved in killing of an activist related to a land grabing case. Mr Maiskar has gone through polygraphic test also for the same and nothing concrete has come out of the investigation against him till now. However, the Bombay high court has advised the session court to speed up the hearing process and come out with a decision within two weeks. There are also reports of CBI looking to file for an application to further instigate the charges against Mr Mhaikar. These developments are sentimentally negative for IRB Infra (though the on-going case has been covered in detail by media and is not new or surprising info). But more importantly, any negative decision from session courts would severe impact the fortunes of the stock. Thus, it is better to be cautious.

Market Buzz 15th January, 2014

Petrol prices may come down by Rs 2 a litre this week

RIL eyes stake in Venezuela crude oil block

Attorney General clears Hindustan Zinc stake sale via auction

Coal India declares Rs 29/share interim dividend

Cairn India's Rs 5,725 crore share buyback starts on Jan 23

Govt mulls Oil India picking up about 7% in IOC: Sources

Government mulls  ONGC  picking up about 3 percent in IOC

ONGC’s KG-DWN-98/2 block in the KG basin is estimated to hold 125 mt of oil and 3 trillion cu. ft gas

Tax holiday, royalty relief mooted for oil block bids

Rivals HCL, CSC to tie up for infra services

Singapore's Sembcorp to take 65% in Nagarjuna's power biz

IGL to increase CNG price by 10 per kg from April

TCS profit likely to surge 45% in third quarter

Tata Motors global sales decline 20% in December

Allergan wins lawsuit against Lupin

Galena Biopharma and India's Dr. Reddy's announce partnership for Neuvax

Liberty Shoes   Q3
-Net profit at Rs 3.2 crore versus Rs 1.8 crore (YoY)
-Total income from operations at Rs 110.5 crore versus Rs 90.1 crore (YoY)

Tata Sons pledged 15 million  Tata Motors shares on January 9

RECESSION...where does all that money go?

The size of the world stock market is estimated at about $36.6 trillion.The total world futures & derivatives market  has been estimated at about $791 trillion face or nominal value,averaging  11 times the size of the entire world economy.Yes,it's just like an inflated balloon...
P.s:In Indian stockmarket, 60% of trading comes from a mere 1,563 traders and half the trading turnover (50%) comes from a shockingly low 451 of which 156 are proprietary traders! (This information is provided by none other than the minister of state for finance, Namo Narain Meena, in response to a question in Parliament (Unstarred question 1669) on 10 August 2010 by Rajya Sabha MP Sardar Sukhdev Singh Dhindsa.).WE CALL THESE SMALLER GROUP OF TRADERS,THE OPERATORS!!
To keep the games hiding,NSE and BSE have always refused to come under the Right to Information act.the matter is still on court.