Investment

Why Should you Invest?
Earn Return on Your Idle Resources

Provision for Uncertain Future

Reduce The Impact of Inflation

Investment Opportunity
Mutual Funds
IPO’s Futures & Options

Shares

Commodity

Currency

Savings of Household in Securities Market

Overview on Securities Market

Type of Securities Market

Securities Market

Primary Market Secondary Market

IPO’s,FPO 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
Shares Cash Segments ETF Secondary Markets Index/Stocks Futures Index/Stocks Options

Derivative Segments

Mechanism of Securities Market

Business Growth in Capital Segment

Business Growth in F&O Segment

Product wise Trading Volumes

Return From Equity Market
Average Return (Approx 25%)

Return%

NIFTY SENSEX

2005 14.89 16.14

2006 67.15 73.73

2007 12.31 15.8

2008 23.89 19.68

2009 -36.19 -37.94

2010 73.8 84.9

Types of Trades in Stock Exchanges
Futures /Options

Shares

Currency

Exchange Traded Funds (ETF’s)

How to Participate in Securities Market ?
1 2 3

• Demat & Trading Account with Stock - Broker • Bank Account

• Pan Card

Players in Securities Markets
DII’s (Domestic Institutional Investors)
FII’s (Foreign Institutional Investors)

HNI (High Net worth Investors)

Retail Investors

Players

Methods of Trade Execution

Desktop Software'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 Intraday 0.03% on Each Side 0.30% on Each Side

Futures

Options

Delivery

0.03% on Contract Value (Each Side)

2.5% on Premium Value or Rs 100 Whichever is More

Taxes on Trading
Charges
Service Tax Turnover Tax Stamp Duty STT Education Cess Higher Education Cess

Applicable
On Brokerage On Turnover On Turnover On Turnover On Tax Amount On Education Cess

Intraday Delivery
10.30% 0.0035% 0.002% 0.025% (Selling side) 2% 1% 10.30% 0.0035% 0.01% 0.125% (Both side) 2% 1%

Futures
10.30% 0.002% 0.002% 0.017% 2% 1%

Total Tax

0.034%

0.17%

0.024%

Taxes on Income
Investment
Shares(Cash Segment) Futures & Options Mutual Fund

Income Head
Capital Gain Income from Business & Profession Capital Gain

Taxable
Long Term-20% Short Term-15% According to Slab

Long Term-20% Short Term-15%

Source of Trading Information
Business Newspaper Informational Websites Business News Channel 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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