Zerodha Part 2

[cooljai]

We are starting an informal blog like format to cover every aspect of business with us.. Just in starting stage and we can create blogs on any query that you may have.. The focus right now is to get as much data as possible soon and we will focus on editing and making it nice eventually, similar to wiki.. We should have everything to do with Ztrader covered in the next 5 days..

Check the step 5 on this link: http://www.zerodha.com/Test/connect/blog/2012/10/zt-setting-up-marketwatch on how to add columns to your marketwatch

Great initiate, something that was really missing on Zerodha.
You can also copy/paste some of the very generic questions that you answer almost every week (eg. Margins, type of trades etc) on traderji and make it a comprehensive resorce, while leaving TJ for topics which are not covered there.

 

[umesh12]

Dear Sachin

I have referred your brokerage house, to one of my friend, to open a trading account. He has a problem and related queries.

1. He has some physical shares to demat. And he want to know the process for the same.

2. Further What to do when shares are in the name of abcd mnop wxyz (3 words) like Amit Kumar Sharma but the PAN card is in the name of abcd mnop (2 words) as Amit Kumar and so the trading and demat accounts will be opened in the name of Amit Kumar (and not Amit Kumar Sharma). Will there be any problem in dematerialisation of shares in such cases. If yes then please suggest the way out.

3. Further what is the process to gift physical shares to a blood relative (like son/daughter, brother/sister) and get it demat to his/her (relative's) account with you.

4. Whether share transfer (fee) stamps are available with you and you can debit his account by that amount.

5. About signatures. If one doesn't remember the original signatures done while applying the shares or when there is a possibility in change of signature.

Thanks and hope to get the answers soon.

 

[umesh12]

---deleted being duplicate-------

 

[tarunjain]

Hi,

I have been trading in futures (various Stocks) for few months now. These trades are not intraday - i.e they are open for few days atleast. Normally my open positions margins will run upto 10 Lakhs on average.

For this margin money, I have shares as collateral with my broker and some cash. Now when the cash is utilized for the positions and margin money from shares as collateral are utilized, my broker is charging delayed payin charges for the same @ 18%. Is that the way it normally is ?

let me know what is the best option available ?

Regards,
-Tarun.

 

[Zerodha]

Zerodha,
In ztrader even after login to nestplus(shift+P), after rightclicking >intraday chart, message showing
"Data Unavailable".

Once you are logged into nest plus, you don't have to right click and say intraday charts..

Right click and go to plugin commands and under plugin commands you will see plus charting..

Cheers..

 

[Zerodha]

Answers in bold

I have referred your brokerage house, to one of my friend, to open a trading account. He has a problem and related queries.

1. He has some physical shares to demat. And he want to know the process for the same.
First open a demat with us and the welcome kit for demat will have dematerialization request forms.. Fill this form, attach the share certificates and send it to ILFS or visit their office with the forms, should take around 15 days...

2. Further What to do when shares are in the name of abcd mnop wxyz (3 words) like Amit Kumar Sharma but the PAN card is in the name of abcd mnop (2 words) as Amit Kumar and so the trading and demat accounts will be opened in the name of Amit Kumar (and not Amit Kumar Sharma). Will there be any problem in dematerialisation of shares in such cases. If yes then please suggest the way out.

Yes there could be problem if the demat account is in a particular name and share certificate in another.. you would need to provide a certificate saying both the persons are the same and have it notorized and attach while giving the forms..

3. Further what is the process to gift physical shares to a blood relative (like son/daughter, brother/sister) and get it demat to his/her (relative's) account with you.
It is very simple, you get delivery instruction booklet(similar to cheque book of your bank account). Fill in the information of the demat account to which it has to be transferred and send it out to ILFS, it will be done in 24 hours..


4. Whether share transfer (fee) stamps are available with you and you can debit his account by that amount.
Once in demat, share transfer fee is nothing but DP transaction charges( which is Rs 8 + NSDL charges).. this will get debited automatically..

5. About signatures. If one doesn't remember the original signatures done while applying the shares or when there is a possibility in change of signature.
Signatures if they are mismatching, again a declaration has to be given which is notorized saying that it is the same person...

 

[Zerodha]

Hi,

I have been trading in futures (various Stocks) for few months now. These trades are not intraday - i.e they are open for few days atleast. Normally my open positions margins will run upto 10 Lakhs on average.

For this margin money, I have shares as collateral with my broker and some cash. Now when the cash is utilized for the positions and margin money from shares as collateral are utilized, my broker is charging delayed payin charges for the same @ 18%. Is that the way it normally is ?

let me know what is the best option available ?

Regards,
-Tarun.

Is it normal, yes it is because a lot of brokers do it..

But is it right? No it is not...

Ideally, once you pledge the stocks(NSCCL), NSE releases margin after haircut which is in turn provided to you.. So if you pledge 1lk of stocks, you might get 70k to take positions in f&O...

You are saying that you keep a cash balance. This should be good for any mtm loss also..

Ideally there should be no interest charge on this..

Interest can be charged, only when you don't have enough funds either as cash or as collateral and the broker funds it from his own funds..

 

[Macro Trader]

There are 2 ways, you can add the OI column to your marketwatch or else double click on the contract and the market depth window also shows OI.

OI data is not released live by the exchanges, so expect to see delays and my advise would be to not base your intraday trades on OI data..

We are starting an informal blog like format to cover every aspect of business with us.. Just in starting stage and we can create blogs on any query that you may have.. The focus right now is to get as much data as possible soon and we will focus on editing and making it nice eventually, similar to wiki.. We should have everything to do with Ztrader covered in the next 5 days..

Check the step 5 on this link: http://www.zerodha.com/Test/connect/blog/2012/10/zt-setting-up-marketwatch on how to add columns to your marketwatch

can this OI data seen in the chart itself.

 

[pumajay]

Is it normal, yes it is because a lot of brokers do it..

But is it right? No it is not...

Ideally, once you pledge the stocks(NSCCL), NSE releases margin after haircut which is in turn provided to you.. So if you pledge 1lk of stocks, you might get 70k to take positions in f&O...

You are saying that you keep a cash balance. This should be good for any mtm loss also..

Ideally there should be no interest charge on this..

Interest can be charged, only when you don't have enough funds either as cash or as collateral and the broker funds it from his own funds..

Hi Zerodha,

I got to know from your team that at EOD I need to have 30% of the trade in cash always (70% of trade in collateral) and then extra cash for M2M. Can you please confirm how is the risk management handled?

What if I have collateral equal to 100% of trade and also maximum 30% trade in cash as balance. Obviously I will be allowed to take the trade. But what happens near the EOD if I am facing M2M loss which is within the limits of 30% cash. Will it be cut from the cash or should I bring in more cash for M2M?

 

[umesh12]

Thanks for the reply. The response is in blue.

Answers in bold

I have referred your brokerage house, to one of my friend, to open a trading account. He has a problem and related queries.

1. He has some physical shares to demat. And he want to know the process for the same.
First open a demat with us and the welcome kit for demat will have dematerialization request forms.. Fill this form, attach the share certificates and send it to ILFS or visit their office with the forms, should take around 15 days...

OK. ILFS has an office in New Delhi

2. Further What to do when shares are in the name of abcd mnop wxyz (3 words) like Amit Kumar Sharma but the PAN card is in the name of abcd mnop (2 words) as Amit Kumar and so the trading and demat accounts will be opened in the name of Amit Kumar (and not Amit Kumar Sharma). Will there be any problem in dematerialisation of shares in such cases. If yes then please suggest the way out.

Yes there could be problem if the demat account is in a particular name and share certificate in another.. you would need to provide a certificate saying both the persons are the same and have it notorized and attach while giving the forms..

Is there any particular proforma for the certificate. If so then please provide the draft/link

3. Further what is the process to gift physical shares to a blood relative (like son/daughter, brother/sister) and get it demat to his/her (relative's) account with you.
It is very simple, you get delivery instruction booklet(similar to cheque book of your bank account). Fill in the information of the demat account to which it has to be transferred and send it out to ILFS, it will be done in 24 hours..

No No, I was asking to transfer by gift physical shares and not via demat account

4. Whether share transfer (fee) stamps are available with you and you can debit his account by that amount.
Once in demat, share transfer fee is nothing but DP transaction charges( which is Rs 8 + NSDL charges).. this will get debited automatically..

This I am asking to transfer physical shares through GIFT and by transfer deed (as in old times with share transfer stamps affixed on it) in the name of the relative, who will have new demat account

5. About signatures. If one doesn't remember the original signatures done while applying the shares or when there is a possibility in change of signature.
Signatures if they are mismatching, again a declaration has to be given which is notorized saying that it is the same person...

Is there any particular proforma for the certificate. If so then please provide the draft/link

Further the two declarations can be done in one certificate or it needs one for each.

Thanks