Investment

Investment

Why Should you Invest?

Earn Return on Your Idle Resources

Provision for Uncertain Future

Reduce The Impact of Inflation

Investment Opportunity

IPO’s

SharesFutures & Options

Commodity Currency

Savings of Household in Securities Market

Overview on Securities Market

Type of Securities Market

SecuritiesMarket

Primary Market

IPO’s,FPO

Secondary Market

NSE/BSE

Primary Markets

Provide opportunity to raise capital from Public

Channel for sale of new securities

Securities Issued at Fixed Price or Book Building

Resources Mobilization from Primary Markets

Secondary Market

Securities are Listed in Stock Exchange

Place where trades are met between Buyers & Sellers

Types of Trades in Secondary Market

SecondaryMarkets

Cash Segments

Shares

ETF

Derivative Segments

Index/StocksFutures

Index/StocksOptions

Mechanism of Securities Market

Securities Exchange Board of India (SEBI)

Exchanges (NSE/BSE)

Stock Brokers

Sub-Broker / Branches

Clients

National Securities Clearing Corp Ltd

(NSCCL)

Depositories(NSDL/ CDSL)

Business Growth in Capital Segment

Business Growth in F&O Segment

Product wise Trading Volumes

Return From Equity Market

2005 2006 2007 2008 2009 2010

NIFTY 14.89 67.15 12.31 23.89 -36.19 73.8

SENSEX 16.14 73.73 15.8 19.68 -37.94 84.9-50

-30

-10

10

30

50

70

90

Average Return (Approx 25%)R

etur

n%

Types of Trades in Stock Exchanges

Shares Futures/Options

Currency

Exchange Traded Funds

(ETF’s)

How to Participate in Securities Market ?

1 •Demat & Trading Account with Stock - Broker

2 •Bank Account

3 •Pan Card

Players in Securities Markets

Players

FII’s(Foreign

Institutional Investors)

DII’s(Domestic

Institutional Investors)

HNI(High Net

worth Investors)

Retail Investors

Methods of Trade Execution

DesktopSoftware's

Phone call(T-PIN)

Website Mobile Trading

Types of Trading

Intraday

Positional Calls (BTST or STBT)

Short Term Deliveries

Long term Deliveries

Trading Cost

BROKERAGE

Cash Segment Futures Options

Intraday 0.03% on Each Side

0.03% on Contract Value

(Each Side)

2.5% on Premium Value

or Rs 100 Whichever is

More

Delivery 0.30% on Each Side

Taxes on Trading

Charges Applicable Intraday Delivery Futures

Service Tax On Brokerage 10.30% 10.30% 10.30%

Turnover Tax On Turnover 0.0035% 0.0035% 0.002%

Stamp Duty On Turnover 0.002% 0.01% 0.002%

STT On Turnover 0.025%(Selling side)

0.125%(Both side)

0.017%

Education Cess On Tax Amount 2% 2% 2%

Higher Education Cess

On Education Cess 1% 1% 1%

Total Tax 0.034% 0.17% 0.024%

Taxes on Income

Investment Income Head Taxable Shares(Cash

Segment)Capital Gain Long Term-20%

Short Term-15%

Futures & Options

Income from Business & Profession

According to Slab

Mutual Fund Capital Gain Long Term-20%Short Term-15%

Source of Trading Information

Business Newspaper

Business News Channel

InformationalWebsites

Research Report

Technical Analysis

Important Websites

www.nseindia.com

www.bseindia.com

www.sebi.gov.in

www.nsdl.com

Tips of Successful Trading

• Know your trading style

• Discipline (No over leverage)

• Always use stop loss for capital protection

• Plan your trade & stick to plans.

• Avoid regular trading

• Understand the industry where investing

Have a nice day!!!