Rematerialisation
Dematerialisation:
It is the process by which a share holder can get physical certificates converted into electronic shares maintained in their client account with the Depository Participant (DP). Securities held in the dematerialised form are in fungible form, i.e. they do not bear any distinguishing features.
Rematerialisation:
It is the process of reconverting demat shares to physical shares is called rematerialisation. If one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account.
Rematerialisation Process :
Beneficial owner/shareholder submits a request to the DP for re-materialisation of its holdings in its account.DP intimates NSDL/CDSL of the request electronically through the system.NSDL/CDSL confirms re-materialisation request to the RTA.RTA updates accounts and prints certificates.NSDL/CDSL updates accounts and downloads details to DPs.RTA dispatches certificates to investors.What is the procedure for applying for a Duplicate Certificate?
The Shareholder has to first and foremost inform the Company of the loss of Share Certificate and file an FIR with the Police Station of his area reporting the loss of shares.
A copy of the FIR duly attested in original has to be sent to the Company along with a letter, signed by the shareholder to enable us to send him the procedure for obtaining Duplicate Shares.
The Company requires the shareholder to execute an Indemnity Bond and Affidavit on Rs.100/- and Rs.10/- Non Judicial Stamp paper as per the attached formats. The Indemnity Bond and Affidavit should be signed by the shareholder and jointholders if any and their signatures SHOULD tally with the one in the Application / Transfer Deed.When to rematerialise?Security settlement in Indian securities markets takes place only in the demat form and hence, it is advisable to hold shares in the demat form only to quickly sell shares as and when desired. An investor can rematerialise shares only when he has no intention to sell his holdings and wants to hold shares only for the purpose of investment for the long term
Monday, July 28, 2008
TRADING AND SETTLEMENT
What is the procedure for selling dematerialised securities?
The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of settlement of shares i.e. delivery (in case of sale) and receipt (in case of purchase) of securities.
Following procedure is followed for settlementIn case of purchase:-• The broker will receive the securities in his account on the payout day from the clearing corporation of the stock exchange.• The broker will give instruction to its DP to debit his account and credit investor’s account who has bough the shares.• Investor will give ‘Receipt Instruction to DP for receiving credit by filling appropriate form. However one can also give standing instruction for credit of securities in his account, which is convenient way of receiving shares as that will obviate the need of giving Receipt Instruction every time.
In case of sale:-The investor will give delivery instruction to DP to debit his account and credit the broker’s account with correct ISIN of the number of securities sold by him. Such instruction should reach the DP’s office at least 24 hours before the pay-in as other wise DP will accept the instruction only at the investor’s risk. DP will debit his account and credit the account of the broker through whom shares have been sold. The broker would then transfer the shares to the clearing corporation of the exchange where shares have been sold.
What is ‘Standing Instruction’ given in the account opening form?
In a bank account, credit to the account is given only when a ‘pay in’ slip is submitted together with cash/cheque. Similarly, in a depository account ‘Receipt in’ form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of ’standing instruction’ is given. If you say ‘Yes’ for standing instruction, you need not submit ‘Receipt in’ slip every time you buy securities. Hence all credits to your account would be automatically facilitated for your convenience.
The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of settlement of shares i.e. delivery (in case of sale) and receipt (in case of purchase) of securities.
Following procedure is followed for settlementIn case of purchase:-• The broker will receive the securities in his account on the payout day from the clearing corporation of the stock exchange.• The broker will give instruction to its DP to debit his account and credit investor’s account who has bough the shares.• Investor will give ‘Receipt Instruction to DP for receiving credit by filling appropriate form. However one can also give standing instruction for credit of securities in his account, which is convenient way of receiving shares as that will obviate the need of giving Receipt Instruction every time.
In case of sale:-The investor will give delivery instruction to DP to debit his account and credit the broker’s account with correct ISIN of the number of securities sold by him. Such instruction should reach the DP’s office at least 24 hours before the pay-in as other wise DP will accept the instruction only at the investor’s risk. DP will debit his account and credit the account of the broker through whom shares have been sold. The broker would then transfer the shares to the clearing corporation of the exchange where shares have been sold.
What is ‘Standing Instruction’ given in the account opening form?
In a bank account, credit to the account is given only when a ‘pay in’ slip is submitted together with cash/cheque. Similarly, in a depository account ‘Receipt in’ form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of ’standing instruction’ is given. If you say ‘Yes’ for standing instruction, you need not submit ‘Receipt in’ slip every time you buy securities. Hence all credits to your account would be automatically facilitated for your convenience.
Sunday, July 27, 2008
Stock Exchange Or Rumour Exchange
Every month I hear a rumour in the market. Sometimes it is bomb scare, a broker in trouble, some news about the company losing the order. SEBI is not doing any thing about it for them this is how markets work. If it does not go up or down, how will they make money.I just wanted to share my opinions on share market.If you want to make bucks in short term then save your money in fixed deposit do not go for stocks.Their are so many reasons for that 1. You are not a expert to tell which stock will go up & which will go down.2. You can not detect Highs & Lows of a stock.3.
I am damn sure that if some how stock price goes up 50% then common man will make only 25% of profit but if it falls then he make 50% loss(after selling in panic).4. probability is more that your stock won’t go up, because if you see stock movement now a days , those stocks which are away for years are going up and I am 100% sure that if common man invests in these stocks it will fall in one month.5. It is only insiders which are making profit in the market & SEBI is unable to detect it. it catching only small fish.6. This is just a guess that underworld is involved in the market through some traders.Wanted everybody know - regarding fraud being practice at NSE. appreciate your time,
I am damn sure that if some how stock price goes up 50% then common man will make only 25% of profit but if it falls then he make 50% loss(after selling in panic).4. probability is more that your stock won’t go up, because if you see stock movement now a days , those stocks which are away for years are going up and I am 100% sure that if common man invests in these stocks it will fall in one month.5. It is only insiders which are making profit in the market & SEBI is unable to detect it. it catching only small fish.6. This is just a guess that underworld is involved in the market through some traders.Wanted everybody know - regarding fraud being practice at NSE. appreciate your time,
TRADE IN NSE
I have traded in NSE and seriuosly have a bias towards NSE. among the two major players in our country one is the BSE and the other NSE. It was started in 1992, in 1994 the wholesaler debt market was opened first time in india, bringing more transparency to the debt market. In 1996, the Nifty index is formed, a 50 stock based index formed in allaince with S&P CNX, which gives more credibility to the numbers. In 1996, the NSDL also was set up, which was the first depository in india.....In 2000, after more milestones, the derivatives were launched to take away the badla system.
Where BSE has been hounded by number of scams and infact the BSE MD-Anand Rathi has been alleged about being involved in the scam. on the ohter hand, NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. It uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualisation of stock exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. The nse web-site is more user -friendly than the BSE website, which is unpregnable.The trade confirmation and the data dessimintaion is very helpful...If you have read till now, then im sure you would have chnaged your mind to trade with NSE.
Where BSE has been hounded by number of scams and infact the BSE MD-Anand Rathi has been alleged about being involved in the scam. on the ohter hand, NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. It uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualisation of stock exchange governance, screen based trading, compression of settlement cycles, dematerialisation and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. The nse web-site is more user -friendly than the BSE website, which is unpregnable.The trade confirmation and the data dessimintaion is very helpful...If you have read till now, then im sure you would have chnaged your mind to trade with NSE.
BULLISH SENSEX………HOW MUCH???
The Indian market is having the good strong both fundamental and technical sentiments…it will help the market to remain on its bullish trend for long time……as the large amount of foreign investment coming in sub-continental secondary equity market, the main reason for which can be said to be the reducing interest rate of Federal Bank, appreciation of Indian Rupee and the recent.
Real Estate crisis in US which has a direct effect on its Economy etc. There has been no strong effect seen in the market of SEBI’s recent guideline on P-Note. No panic seen in the both foreign and domestic investors. SEBI’s new revised guideline though having some positive effects on the foreign inflows as some of SEBI’s new rules enabled the easy entry to new individual foreign investors.
Sectors like IT & Pharmaceuticals are the largest sector which have seen strong bearish trend during this bullish market sentiment as the maximum amount of income of these industries come through exports and there foreign business which is been largely effected by the appreciating rupee which had the direct effect of the industries income and profits. Other sectors which have been under performing in this market are Sugar, Infrastructure etc.
Sectors which have performed strongly are Power, Oil, Fertilizer & Chemicals, Energy, Capital Goods, Cement, Natural Resources and Steel etc. These sectors contributing largely towards the growing market and country’s Economy.
What we can say is that though there can be some correction in the near future in the market but it will not lead the market towards bearish trend it will only be short term correction all and all the market is seems to be very strong heavy investment coming up in the market and is having strong fundamental and technical sentiments.
Real Estate crisis in US which has a direct effect on its Economy etc. There has been no strong effect seen in the market of SEBI’s recent guideline on P-Note. No panic seen in the both foreign and domestic investors. SEBI’s new revised guideline though having some positive effects on the foreign inflows as some of SEBI’s new rules enabled the easy entry to new individual foreign investors.
Sectors like IT & Pharmaceuticals are the largest sector which have seen strong bearish trend during this bullish market sentiment as the maximum amount of income of these industries come through exports and there foreign business which is been largely effected by the appreciating rupee which had the direct effect of the industries income and profits. Other sectors which have been under performing in this market are Sugar, Infrastructure etc.
Sectors which have performed strongly are Power, Oil, Fertilizer & Chemicals, Energy, Capital Goods, Cement, Natural Resources and Steel etc. These sectors contributing largely towards the growing market and country’s Economy.
What we can say is that though there can be some correction in the near future in the market but it will not lead the market towards bearish trend it will only be short term correction all and all the market is seems to be very strong heavy investment coming up in the market and is having strong fundamental and technical sentiments.
Sensex- A Succinct Look
Sensex is a measure of how the entire economy is performing as a whole. Sensex is the BSE Sensitive Index. It was established in 1875 and oldest stock exchange in Asia. In 1956 it obtained the permanent recognition from Government of India under the Securities Contract (Regulation) Act, 1956.Sensex is made of 30 stocks of different companies belonging to 13 sectors. These stocks are the representatives of the overall stock market performance vibe. These shares are not selected arbitrarily but by the Index Committee applying varied conditions e.g. the stock must have been traded on each & every trading day on stock exchange for past one year. The numbers of stocks are 30 only but they portray about 40 or 50% of market capitalization. Sensex captures price movements on the basis of stock specific information e.g. new product launch, take over made by the company etc. or information regarding the economy as a whole e.g. stability of the govt., budget announcement, taxation policy etc.
There are different methods of calculating Sensex e.g. Market Capitalization method, free- float market capitalization etc. The later one is internationally followed by MSCI, FTSE, Dow Jones, S& P etc.April, 2006 sensex reached its ever highest 12,040. A positive indicative of the fact that the economy as a whole is performing well, especially in the sectors that are under the umbrella of sensex i.e. 30 stocks form 13 sectors. Again for more specification you can refer to the sectoral indices e.g. Bankex, IT Index, Oil & gas Index, FMCG Index etc. Sensex has 1978- 79 as its base year with base value being 100 which is depicted in notational form as 1978- 79= 100. But you must not opine about the economic performance of the country as a whole on the basis of sensex value, with closed eyes. This is because, if a sun rise stock is doing well in the market but is not in the list of 30 stocks, its vibrant performance will not be reflected in the sensex value. On the other hand if there is a south ward movement in Bankex but a spurt in FMCG Index, outweighing the effect of negative impact of ebbing Bankex, sensex will reflect an exquisite buoyancy of the stock market. We must consider the sectoral indices for more specific idea about the economy in totality.
There are different methods of calculating Sensex e.g. Market Capitalization method, free- float market capitalization etc. The later one is internationally followed by MSCI, FTSE, Dow Jones, S& P etc.April, 2006 sensex reached its ever highest 12,040. A positive indicative of the fact that the economy as a whole is performing well, especially in the sectors that are under the umbrella of sensex i.e. 30 stocks form 13 sectors. Again for more specification you can refer to the sectoral indices e.g. Bankex, IT Index, Oil & gas Index, FMCG Index etc. Sensex has 1978- 79 as its base year with base value being 100 which is depicted in notational form as 1978- 79= 100. But you must not opine about the economic performance of the country as a whole on the basis of sensex value, with closed eyes. This is because, if a sun rise stock is doing well in the market but is not in the list of 30 stocks, its vibrant performance will not be reflected in the sensex value. On the other hand if there is a south ward movement in Bankex but a spurt in FMCG Index, outweighing the effect of negative impact of ebbing Bankex, sensex will reflect an exquisite buoyancy of the stock market. We must consider the sectoral indices for more specific idea about the economy in totality.
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