investment
Post on 15-Jun-2015
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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!!!
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