How can one convert physical holding into electronic holding i.e how can one dematerialise securities?

In order to dematerialise physical securities held by an investor, he has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical share certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:

# Surrender certificates for dematerialisation to your depository participant.
# Depository participant intimates Depository (NSDL or CDSL) of the request through the system.
# Depository participant submits the certificates to the registrar of the Issuer Company.
# Registrar confirms the dematerialisation request from depository.
# After dematerialising the certificates, Registrar updates accounts and informs depository of the completion of dematerialisation.
# Depository updates its accounts and informs the depository participant.
# Depository participant updates the demat account of the investor.

What is an ISIN?
ISIN (International Securities Identification Number) is a unique identification number for a security. India follows the norms stipulates by Association of National Numbering Agency (ANNA) which is the international body for issue of ISINs. National Securities Depository Limited (NSDL) issues ISINs in India and a complete list of ISINs is available on their website: www.nsdl.co.in. Also note that ISIN of a security changes in case of certain corporate action such as split in share par value, consolidation of share capital etc. Hence you have to quote the correct ISIN at the time of giving dematerialisation request as well as at the time of transfer of shares.

The two P’s stand for personal responsibility and planning. Investors are always torn between fear of losing money or leaving money on the table (greed). This makes them leave this market too soon or stay in too long. Here are some stock tips to prepare yourself for the ups and downs of the market.

Investors can protect themselves by planning

Each trade needs to have a solid plan based on whatever criteria that trader is using. This plan includes an entry point, a point where the stock fulfills its move and profit is taken and a point where the investor limits the amount of money to be lost if this stock does not react the right way. This is the most important part of the strategy, limiting the amount of money that could be lost.
money at risk; the investment fund will be depleted and that person will be out of business.

One major stock investing tip is to never, ever let emotions get involved.  Before any investment decision, develop a well thought out and written plan, so that trader can take the profit at the predetermined “exit price” and let that certain stock rise and fall without exhilaration and anxiety getting involved in the equation. Sometimes there will be money left on the table, sometimes this will be the right decision and a winning trade would turn into a losing trade. It is only by mastering him or herself that an investor will be able to handle the normal movement of each stock.

This investment planning process includes the short-term and long-term goals of the investment account. A person who day trades will make their decisions on a short time frame and be in and out of the market several times in a day. A person who is holding the investment for weeks, months or years looks at a longer picture and is more comfortable with the normal ups and downs of the market as long as the long-term trend benefits them.

Market investors analyze the market based on two different criteria, called the two C’s

These two C’s are company information and chart action. Investors who rely on company information try to learn all they can about the company; Warren Buffett is one of these value investors. These people analyze sales information, inventories, industry trends and forecasts and the ranking of the company in that industry. They want to know if sales are increasing, if accounts receivables are climbing if earnings are being met or exceeded and if management is being changed.

These investors behave like the CEO of that company, because they truly believe in becoming partial owners when they buy equity securities. They are looking for long-term capital appreciation in the company and should be concerned with all aspects of normal business ownership.

Short-term traders make money using technical analysis

Do-it-yourself investors often focus their time on reading charts and looking for recognizable chart patterns. People who follow the day trading approach believe that the market repeats itself, and if the right patterns can be deciphered money can be made. By watching the price action on a chart, the day trader is looking for certain patterns; these patterns will tell that investor when to enter the market and at what price. Additionally these patterns tell investors when to get out of the market.

These stock investment tips from successful investors can help a novice keep more of his or her money while he or she is learning to navigate this intriguing industry, the stock market.

The Indian Stock Market is the undisputed leader in the Asia’s market. It has a reputation among the foreign institutions. During the past few years from the time of crash in 2004 there have been many swings in the Indian stock market. But, the gains from the market have been quite modest. The traders have made money by investing in shares and stocks and have made handsome profits. The rate of inflation in India is high so the brokers are more interested in selling than in buying stocks. The FDIs have also reduced considerably and the market has seen a rigorous financial critical condition.

Now the financial scenario of Indian stock market is on the road to recovery and is getting back its lost sight. In recent times market is gaining and has reached 17000 points and so is now looking towards a ray of hope. Take your investment seriously and don’t treat yourself to ups and downs as the bad part has gone. However, be ready for the good and bad points of the stock market investment.

You should have proper investment guidance as it will work like magic for you if you are trading shares in share market. You should have all the latest information ready with you. You need stock quotes, stock updates, daily stock alerts and every other information related to stock/stocks within your reach. The platform you use should be definitive in every part. Proficient stock advice from the brokers and the stock professionals is the information that is must for you.

Technical analysis is a study of statistical indicators. There are many technical analyses and not each one of them is perfect. If you want to invest on the basis of technical analysis, then you should to study all the technical analysis and them come to a rational conclusion.

You can trade from home through the internet. In this, you should know technical analysis. It is not easy to analyze the movement of any stock. You need to focus properly, patience to study all the swings of trading carefully, and plan very thoughtfully. It won’t do to depend totally on technical analysis as you won’t get results. It is a tool which will help you to do trading with profit and exit the market without losing money. The analysis has to be done over a period of time and it is not possible to do it in a short time. You research and collect all the data over a period of time and then sort it out top analyze it correctly. Only then you will get results.

Those who trade daily should do fundamental analysis. The daily movement of stock indicates the trend. When the market opens in the morning you should let it settle it down for at least ½ an hour. Then, only you will come to know the trend of the market. Plan your movement only after that and never hesitate or else you will always repent it later. Think properly and make wise decisions.

Women can follow the stock market with the help of internet connection as everything is there online. There are many websites informing all the information needed for trading. You can invest wisely and follow the market properly. As women by nature are cautious by nature, so they are perfectly alright for the stock market trading conditions. You should have up-to-date knowledge with the latest social, political, domestic and international news so that you do not make any mistakes take financial decision at the right time. Those women who start investing at the earliest they will observe that they can gather large fortune if the trends in the stock market are their favor. You should start with small investments and if all goes well make more investments.

Try to take small risks so that you gain profits. Always buy and hold stocks and shares of excellent companies for long period and try to make short-term profits depending upon the market response. You should try to have wide asset allocation. This means that you should spread money wisely and do not keep your eggs in one basket. With right decisions women can invest properly and make huge gains.

Many women have looked at their household products and have made profit. For instance, when scotch bright was first introduced in the market, they searched the company that had introduced it and invested in that company. The product was success and they gained from it. Look properly and be aware of the latest trend and you will surely gain from it.

The tips are sent through SMS during the trading hours. Some even send emails or talk on the phone and advise regarding investment. There are many sits also that show you the up and down trend of the stock market. Keeping track of wider index related to sensex India, like NSE Nifty and BSE Sensex can be had from these sites. You have to register to these sites and one you have registered you will be able to get the latest news about the fluctuation of the market, stock market shares and the up and down of any shares. These sites also offer advice by experts.

You have to open a demat account through stock broker and this broker will guide you through the rest. You will find that share trading in India is easy if you are furnished with share trading tips and have complete information of stock market share and sensex India. When your account is open, then you can buy and sell shares and your ownership. The stock shares will be approved with the issuance of a legal document – a stock certificate, which is a record of the shares you hold. Many times you will get good returns whether your investment is big or small. You will get fast cash if the stock market turns to your favor. Do your research properly and register with a reputed stock broker who will uphold your interest.

The Stock Market of India was set up in 1875. At that time there were 22 brokers who met and established the Bombay Stock Exchange. From that time onwards the Indian Stock market has grown in leaps and bounds, and has become a forceful and competent stock market in the continent. It is equal to any international market in the world. It has the same level of efficiency and organizational ability. The market caters to the huge population of India and gives them investment opportunities. It also provides the institutions and organizations with funds. The unpredictable nature of the Indian stock market has made it very difficult for the common man to understand it. So prior to investing in the stock market you have to research it properly.

When it was started the Bombay Stock Exchange had only a few hundred people taking membership in Stock Broker Association and Native Share. In 1965 BSE was recognized permanently by the Government of India, The BSE and National stock exchange are both the main stock exchange of Indian stock market. Government of India gave permanent identification to the BSE. BSE along with National Stock Exchange both are main part of Indian Share Market and are the two national stock exchanges of India. BSE has about 5000 listings at the starting.

The stock and shares are issued to the public for investing in various companies. The revenue generated from the stocks and shares is used for business expansion or any government projects. The profit of the company is then shared by the public, which has invested in the company. The share market allows for public trading of companies and has become an important source of raising fund for the companies. The government has also formed the Securities and Exchange Board of India (SEBI) which controls the functioning of stock exchanges, investment advisors, portfolio managers, brokers and sub-brokers. The sensex is made on the basis of the performance of the stocks of 30 sound financial companies.

The Indian stock market is basically divided in two parts; the first is the primary part and the secondary part. In the primary market the shares are issued directly by the company are dealt by share brokers appointed by the companies. In the secondary market the stocks of various companies are listed in the stock exchange and are represented by the share brokers, the investors invest in companies through these share brokers.

Who is a depository participant?
A depository participant is a person or entity, which is registered with depositories such as NSDL and/or CDSL as also with SEBI and who offers services of holding your shares and effecting transfer (accepting credits in your account as well transferring shares from your account to that of some one else based on your instructions). Thus a depository participant acts as a custodian of your securities held in dematerialized or fungible form and carries out your instruction to transfer the same.

The two models of the depository system are:
1. Dematerialization, wherein, by operation, there is no physical scrip in existence as neither the individual who owns the shares nor the depository keeps scrips. The depository maintains the electronic ledger of the securities under his control.
2. Immobilization, wherein the physical scrips are held in the depository vaults, supporting the book entry records kept on the computer.
Two types of ownership are contemplated under the depository system and can be briefly put forth as follows:
1. A registered owner is the depository who holds the securities in his name.
2. A beneficial owner is the person whose name is recorded as such with the depository. Though the securities are registered in the name of the depository actually holding them, the rights, benefits and liabilities in respect of the securities held by the depository vest in the beneficial owner.

The depository model is based on the deposit of securities by the owner of the securities with a certified depository. Subsequently, an entry is made in the name of the said owner, manifesting his ownership of the securities upon which the person depositing the securities becomes the beneficial owner in respect of the said securities. The service provided in relation to this by the depository is that of recording of allotment of securities or transfer of ownership of securities in the record of the depository .

How are transfers made by DP?
DPs issue Delivery Instruction Slips (or DIS) to all account holders. These are like cheque leaves. Whenever you want to transfer shares from your account to another account, you are required to fill the relevant details such as security identification number, number of shares you want to transfer, date of transfer, account to which shares need to be transferred etc. and submit this slip to your DP. The DP would then affect the transfer. You can give standing instructions to your DP for all credits to your account, whereby you need not give instructions to your DP each and every time for accepting credit to your account.

If the company is doing well then more peoples
will try to buy that company’s share and very less people
will try to sell the share, so the share value of the
company will increase. Who ever is holding the share gets
profit. If the company is not doing well then more people
will try to sell the shares and only very less people
will try to buy the shares, so the share value of the
company will decrease.

Intraday trading is buying the share
when its down and selling share after it goes up on the
same day. Short selling is selling share with high value
and buying it back after it goes down on the same day.
To buy a company’s share you need a trading
account. Trading account holds the shares and the money
used for trading. You have to transfer money from bank
account to your trading account and from where you can
buy shares. After selling the shares money goes back to
the trading account. You can’t withdraw money directly
from trading account. For that you have to transfer
money from trading account to your bank account and then
you can withdraw money from bank account.

Background of the Art
Mutual fund units and shares are purchased through a broker or directly from the mutual fund. The mutual fund and purchaser decide for themselves whether they wish to deal through brokers or deal directly without a broker. In this description, the term “portions” will be used to refer to all shares or units in a mutual fund, as those terms are defined by established practice with. For the purposes of the invention, whether a mutual fund is structured to distribute shares or units is irrelevant since the method is applied to each type of holding in the same way.

One means of providing brokers with compensation involves a mutual fund selling scheme known as “front end loaded” where the broker is given a commission based on a percentage of the total price of portions purchased. For example, if a purchaser wishes to purchase 100 portions of $10 value each, the up-front purchase price paid is $1050 of which $1000 is invested in the mutual fund and $50 commission or 5% service fee goes to the broker.