What to expect from a stock broker? What are your rights?
A stock broker is obligated to give you prompt and efficient service, make timely payment and give delivery of shares. He is required to execute your orders on the stock exchange with utmost sincerity and exercise due diligence. He is also obligated to issue you contract notes indicating your transactions for the day. Insist on this. Always be aware of your rights.

STOCK BROKERS

What are the services offered by stock brokers?
Stock brokers offer services such as buying and selling on behalf of investors. They also provide advisory services. If stock brokers are also registered as a portfolio manager, they can offer PMS services. Some of the bigger brokers also publish their own research reports which are available at a cost for investors.

What to expect from a stock broker? What are your rights?
A stock broker is obligated to give you prompt and efficient service, make timely payment and give delivery of shares. He is required to execute your orders on the stock exchange with utmost sincerity and exercise due diligence. He is also obligated to issue you contract notes indicating your transactions for the day. Insist on this. Always be aware of your rights.

What are your obligations?
As an investor, it is your obligation to carry out necessary due diligence before purchasing or selling shares. Due exercise care and caution and not be misled by rumors and hearsay. Make timely payment to your stock broker in case of purchase of shares and give deliveries to him well before pay-in in case of sale of shares by you. This is important otherwise your positions may be auctioned or closed out and you may have to suffer heavy losses.

Allotment:
A letter sent to the successful application about allotment of shares/debentures against his application.
American Depository Receipts (ADRs):
A certificate issued in the United States in lieu of foreign security. ADRs are traded in US markets for all intents and purposes.

American option:
A put or call option that cane be exercised any time before the expiration date.

Asset Management Company:
The company that handles day to day management and operations of a Mutual Fund.

Arbitrage
The process of benefiting out of price differential in the same scrip between two markets or because of price difference in the scrip in the underlying market and futures or derivative markets.
Arbitration:
Settlement of claims differences or disputes between member of a stock exchange and another member and between a member and his clients, sub-brokers, etc., through appointed arbitrators. It is a quasi-judicial process that is faster and an inexpensive way of resolving a dispute. The stock exchange facilitates the process of arbitration between the members and their clients in accordance with the bye-laws of the exchange.

Ask
The price which the seller of the security wants to sell the shares owned by him.

Auction:
An auction is a mechanism utilized by the stock exchange to fulfill its obligation to a counter party member when a member fails to deliver agreed securities or make the payment. Through auction, the stock exchange arranges to buy good securities and deliver them to the buying broker or arranges to realise the cash and pay it to the selling broker.

Be a long-term investor:
You should have a long term horizon. Short-term trading will make brokers rich and not investors and the income tax department will also be happy. Mutual funds are diversified and therefore, their gains and losses are likely to be lower than what it would be in case you are investing in an individual security. However, major fluctuations are highly uncommon in mutual funds. So what make sense is to leave your capital in a mutual fund for a long time and let it compound. So the key point is Buy and Hold. It also requires to you do a reality check on yourselves so that you can define your goals and priorities before entering the market.
Start Early:
When you invest in the market is more important than the market timing. Always enter the market with long term thinking. Do proper researches before investing set your priorities and goals, ascertain your risk profile. Also very importantly you should keep yourself abreast with the daily market news. One should not do impulsive purchase allowing emotions overpowering the sense of reason.

Know yourself and then What You Are Buying:
The first step towards achieving your goals would be to know yourself, your risk appetite and accordingly make the investments. Once you have discovered yourself, explore the market and find out the kind of funds available in the market. Firstly, get a hang on the style and strategy followed by a fund by reading the available material. This will help in diversifying the portfolio and also in assessing potential risks. In general, large-cap value funds are less risky than small-cap growth funds.

How many Depositories are registered with SEBI?
At present two Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) are registered with SEBI.

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.

Is it compulsory for every investor to open a depository account to trade in the capital market?
Around 99.9% of the securities settlement takes place in dematerialized mode. Therefore, in view of the convenience in settlement through dematerialized mode, it is advisable to have a beneficiary owner (BO) account to trade at the exchanges and to hold the securities.

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.

Be a long-term investor:
You should have a long term horizon. Short-term trading will make brokers rich and not investors and the income tax department will also be happy. Mutual funds are diversified and therefore, their gains and losses are likely to be lower than what it would be in case you are investing in an individual security. However, major fluctuations are highly uncommon in mutual funds. So what make sense is to leave your capital in a mutual fund for a long time and let it compound. So the key point is Buy and Hold. It also requires to you do a reality check on yourselves so that you can define your goals and priorities before entering the market.
Start Early:
When you invest in the market is more important than the market timing. Always enter the market with long term thinking. Do proper researches before investing set your priorities and goals, ascertain your risk profile. Also very importantly you should keep yourself abreast with the daily market news. One should not do impulsive purchase allowing emotions overpowering the sense of reason.

Know yourself and then What You Are Buying:
The first step towards achieving your goals would be to know yourself, your risk appetite and accordingly make the investments. Once you have discovered yourself, explore the market and find out the kind of funds available in the market. Firstly, get a hang on the style and strategy followed by a fund by reading the available material. This will help in diversifying the portfolio and also in assessing potential risks. In general, large-cap value funds are less risky than small-cap growth funds.

Be a long-term investor:
You should have a long term horizon. Short-term trading will make brokers rich and not investors and the income tax department will also be happy. Mutual funds are diversified and therefore, their gains and losses are likely to be lower than what it would be in case you are investing in an individual security. However, major fluctuations are highly uncommon in mutual funds. So what make sense is to leave your capital in a mutual fund for a long time and let it compound. So the key point is Buy and Hold. It also requires to you do a reality check on yourselves so that you can define your goals and priorities before entering the market.
Start Early:
When you invest in the market is more important than the market timing. Always enter the market with long term thinking. Do proper researches before investing set your priorities and goals, ascertain your risk profile. Also very importantly you should keep yourself abreast with the daily market news. One should not do impulsive purchase allowing emotions overpowering the sense of reason.

Know yourself and then What You Are Buying:
The first step towards achieving your goals would be to know yourself, your risk appetite and accordingly make the investments. Once you have discovered yourself, explore the market and find out the kind of funds available in the market. Firstly, get a hang on the style and strategy followed by a fund by reading the available material. This will help in diversifying the portfolio and also in assessing potential risks. In general, large-cap value funds are less risky than small-cap growth funds.
Be A Disciplined Investor:
Once you’ve chosen some funds, you may stick with them. It is not necessary that one should always go with the tide. Even the unpopular groups tend to outperform in subsequent years. Investing a regular amount of money at regular intervals may add a good value to your portfolio. Make a systematic investment plan which in all probability likely to offer reasonable returns.

Know How Much You Pay:
There is one famous saying that Money saved is money earned. So it’s always better to pay less than it is to pay more. Expenses are very important with your larger-cap, lower-risk funds, and less critical with small-cap funds and other higher-risk categories. You can afford to be lenient with the expense of a small-cap or a sector equity fund. Actually, the strength of the mutual fund lies in its simplicity. Don’t follow the bandwagon

Allotment:
A letter sent to the successful application about allotment of shares/debentures against his application.
American Depository Receipts (ADRs):
A certificate issued in the United States in lieu of foreign security. ADRs are traded in US markets for all intents and purposes.

American option:
A put or call option that cane be exercised any time before the expiration date.

Asset Management Company:
The company that handles day to day management and operations of a Mutual Fund.

Arbitrage
The process of benefiting out of price differential in the same scrip between two markets or because of price difference in the scrip in the underlying market and futures or derivative markets.
Arbitration:
Settlement of claims differences or disputes between member of a stock exchange and another member and between a member and his clients, sub-brokers, etc., through appointed arbitrators. It is a quasi-judicial process that is faster and an inexpensive way of resolving a dispute. The stock exchange facilitates the process of arbitration between the members and their clients in accordance with the bye-laws of the exchange.

Ask
The price which the seller of the security wants to sell the shares owned by him.

Auction:
An auction is a mechanism utilized by the stock exchange to fulfill its obligation to a counter party member when a member fails to deliver agreed securities or make the payment. Through auction, the stock exchange arranges to buy good securities and deliver them to the buying broker or arranges to realise the cash and pay it to the selling broker

What to expect from a stock broker? What are your rights?
A stock broker is obligated to give you prompt and efficient service, make timely payment and give delivery of shares. He is required to execute your orders on the stock exchange with utmost sincerity and exercise due diligence. He is also obligated to issue you contract notes indicating your transactions for the day. Insist on this. Always be aware of your rights.
What are your obligations?
As an investor, it is your obligation to carry out necessary due diligence before purchasing or selling shares. Due exercise care and caution and not be misled by rumors and hearsay. Make timely payment to your stock broker in case of purchase of shares and give deliveries to him well before pay-in in case of sale of shares by you. This is important otherwise your positions may be auctioned or closed out and you may have to suffer heavy losses.

A prolonged phase of weak investments could increase loan defaults by companies or call for restructuring of debt, denting banks’ profitability.

New investment proposals in 2011 fell 45% to 10.46 lakh crore, from 18.88 lakh crore a year earlier, data from the Centre for Monitoring Indian Economy (CMIE) shows.

“If investment-led growth does not happen, we will manage to have a GDP of around 6.5% over the next 3-5 years,” said A Subba Rao, chief financial officer, GMR Group, which runs airports and utilities. “Investment is weak and if the government does not act fast, it may come to a grinding halt. The government needs to work overnight and carry forward reforms and approve policies over the next 2-3 months for things to improve.”

Companies have frozen investments as government flip-flop on policies are blurring returns, especially in the power sector that guzzles capital and needs scores of departmental approvals for smooth execution. State investments are also slowing as welfare programmes take precedence over asset creation.

With many projects stalled, banks are also reluctant to lend for fear of bad loans. The 13 rate increases by the RBI have made funds expensive.

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At 0218 GMT, the MSCI’s broadest index of Asia Pacific shares outside Japan was up 1.6 percent, while the Nifty India stock futures in Singapore were up 0.41
percent, pointing to a gap up opening for the domestic market. The main 30-share index closed down 0.22 percent at 15,814.72. The benchmark, which fell almost a quarter in 2011, rose 2.5 percent last week. The Nifty closed down 0.1 percent at 4,742.80 on Monday.

STOCKS TO WATCH
* Adani Enterprises and GAIL India after sources told Reuters the two companies along with Gujarat State Petroleum Corp were likely to bid for BG Group’s stake in Gujarat Gas for about $900 million. * Hindustan Petroleum Corp after sources told Reuters the state-run oil marketing company would double the volume of Saudi crude it imports in an annual deal beginning April.
* Kiri Industries Ltd after the company said its board had approved raising up to 3 billion rupees.

* Take Solutions Ltd after the company said it had divested its holdings of 507,909 equity shares in its Muscat-based unit Towell Take Investment LLC.
* GeeCee Ventures Ltd after the company said its board had approved buyback of up to 1.6 million shares at a price not exceeding 65 rupees per share.