Trading using Sharekhan. Last updated : 15 Jan Jasvinder Nagpal and Wealthci.com All rights reserved

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2 Trading in India using the broker : Sharekhan To open a new account, What documents you will need At least 1 Passport size photo Driving License, Address Proof (passport as a proof of your permanent address) PAN Card copy If your current address is different than your permanent address, then the proof of your current address this could be a cell phone bill or an electric bill with your name and address on it A bank account from where you can transfer money in and out of A cancelled cheque book leaf To transfer money online in and out of sharekhan, you will need online banking enabled for your bank How to open a new account Go to the website : On the top right corner of the page, there should be a link : OPEN An account now. Click that. If there is no link, please use the following Fill up your details name, contact no., address, your nearest city, etc and someone from the nearest office will contact you regarding opening a new account sometimes it takes up to a week for a new account to be ready. Once your account is opened, you will get a user name, a trading password and a browsing password by mail / courier. Keep this safely and memorize it. The trading password needs to be changed every two weeks or so.

3 What you will need A computer with 512 MB ram and some 40 GB HDD for TradeTiger this is a GUI based trading software needs some memory A high speed internet connection A speed of 512 Kbps or better Airtel, BSNL, 3G cards would work fine An ability to use the browser Internet Explorer, Opera, Apple Safari, Google Chrome, etc What can you trade in - the various instruments There are various segments where you can trade it Cash segment this is where you buy delivery based contracts say, the current price of Reliance is Rs. 860 and you want to purchase 10 shares, you will need Rs 8600 to be present in your cash account Trade Timings : 9:15 am to 3:30 pm mon to fri non public holidays Exchanges : BSE ( Bombay Stock Exchange ), NSE ( National Stock Exchange ) Futures and options ( F & O ) segment, also known as the derivatives segment : Futures are where you can buy a lot of shares of a stock that is listed in the F & O segment for a lot less than it costs in cash. Eg RELIANCE is listed in F&O segment the minimum qty in 1 lot is 250 and it costs Rs. approx. 31,410 to trade in it. These margins keep changing depending on the price increases or decreases and the volatility are decided by the exchange. If you had to buy 250 shares of RELIANCE in the cash segment, you would have to shell out : Rs 250 x 860 = 2.15 lakhs for it!! Each F & O segment comes with three expiry : Near, Next and Far The expiry date in India is usually the last Thursday of the month at which point you have to close the positions (also known as squaring off). Trade Timings : 9:15 am to 3:30 pm Mon to Fri non public holidays Exchanges : BSE ( Bombay Stock Exchange ), NSE ( National Stock Exchange ) Commodities Segment This is where you trade agricultural commodities ( like Wheat, Rice, Cummin seeds, Bajra, etc ) the NCDEX exchange.

4 The MCX (Metals and commodities exchange) Gold, Silver, Copper, Lead, Zinc, Nickel etc and the energy section Natural Gas, Crude Oil Trade timings : 10 am to 11:30 pm ( 12:00 pm during Nov April ) Currencies Segment This is where you can trade the various currency pairs USD v/s INR - US Dollar to Indian Rupee GBP v/s INR - UK Pound to Indian Rupee SGD v/s INR - Singapore dollar to Indian Rupee EUR v/s INR - EURO to Indian Rupee To see the current / SPOT rates, please use the following link. You can see the margin requirements ( money needed to trade ) at : click the RMS link at the bottom of the page and the various excel files, which will tell you how much you need to have in your account. USD v/s INR at the time of writing this, 1 July 2013, need Rs 2,100 or so to play 1 lot of 1000 currency shares. Each 1 rupee movement on your side will fetch you Rs 1000 per lot, so if the USD v/s INR went from 58.5 to 59 and you were long the dollar, you would have made a PROFIT Rs ( ) * 1000 = Rs. 500 that day. If you were SHORT the USD that day, you would have made a LOSS of Rs. 500 Trade timings : 9 am to 5 pm How does Sharekhan make money? Well, it is a broker and they bring the share market to your computer, so for every transaction that you make, you have to pay them. This is the brokerage you can negotiate for a lower brokerage with your broker by telling them that your trading volume will be very high and you will be trading everyday. Here is my brokerage in the various segments. Please increase the zoom percentage to see it better.

5 Transferring money in and out of sharekhan You can link your bank accounts online and transfer money in and out of sharekhan using online banking Logon to and click the Accounts Link: This is the old sharekhan website the new one is down below. You can use Cash Transfer To bring money IN to sharekhan CASH segment Withdraw Cash To take money OUT from sharekhan CASH segment Allocate Funds To see how much money is there in each segment Commodity Cash Transfer To bring money INTO commodities account Commodity Withdraw Cash To take money OUT from commodities account NSE Currency Cash transfer To bring money INTO currencies account NSE Currency Withdraw Cash To take money OUT from currencies account You can add or remove bank accounts that you want to transfer money in and out of. Just fill up the form and give a cancelled cheque leaf and drop it off at your nearest sharekhan broker office.

6 From time to time, sharekhan might ask for proof of your income just hand them a few recent pay-stubs or your most recent Form 16 from the employer. If own a business, not sure what documents they ask from you.

7 The new sharekhan trading website Cash Transfer Section Bank to Equity when you want to transfer money from the Bank to Cash Trading account for buying shares in cash or Futures and Options segment. Bank to IPO when you would like to transfer money from Bank to the IPO account this is used for purchasing shares in the Initial Public Offering that is when a company sells it s shares to open public also known as GOING PUBLIC. Bank to MF when you would like to transfer money from the bank to the mutual fund. This is from where you can invest in various Mutual Fund schemes from various companies - eg Blackstone, ICICI Bank, Reliance Mutual Fund, etc. Bank to commodity when you want to trade Silver, Gold, Crude Oil, Natural Gas, Lead, Zinc, etc Bank to currency when you want to trade in currencies eg USD INR ( Us dollar to Indian Rupee ), GBP INR ( UK Pound to Indian Rupee ) JPY INR ( The Japanese Yen to Indian Rupee ) Withdraw Cash section Equity to Bank when you want to move money OUT from the cash account of sharekhan and INTO the bank Commodity to Bank when you want to move money OUT from the commodities account and INTO the bank Currency to Bank when you want to move money OUT from the currencies account and INTO the bank.

8 Allocate Funds section this section can be used to move money between the Cash, IPO and Currency account. Transfer between equity and commodity accounts is not allowed. Equity to IPO - Move money between equity and the IPO account Equity to MF Move money between the equity and Mutual Funds account Equity to Currency Move money between the Equity to currency account. Balances Section Here you can see the balance in all the various segments which you have activated with sharekhan. Bank accounts linked to your trading account Under this section, you will see all the bank accounts that are linked to your sharekhan trading account. Reports Fund Transfer report shows all the funds transferred in from the bank into various sections Withdraw Cash report shows all the funds taken OUT from various sections and INTO the bank account.

9 Profile section This screen below is what you see when you click the PROFILE section in the top row. This is the Edit Profile section It shows your Existing , cell phone, contact information, etc Profile section View Profile Shows all the information like : 1) Your name, full address, id, cell phone, land line information etc. 2) Your Demat account id, Customer ID, PAN number etc. Edit Profile - allows you to edit information such as Mobile No, , etc. Change Password section To login to sharekhan : There are two passwords that are needed. One is the membership password and the other is the trading password. Membership password : This is the first password that is needed to login You can change it here. Trading Password : This is the second password that is needed to login You can change it here. Forgot password / Account locked : For those days when you have trouble to remember the password you can unlock it here or generate a new one via an SMS to your cell phone. Change Hint Q & A Membership Hint Q & A : This is a secret question that you have the answer to, in case you forget your password. You can get it via the secret question, e.g. What is your first pet s name or what is your favourite pastime or something similar.

10 This is the screen that is used to place a BUY or SELL order. It is used for any exchange NSE Cash BSE Cash NSE Futures and Options MCX Futures and Options NCDEX Futures and Options NSE Currencies MCX Currencies NSE stands for National Stock Exchange. BSE stands for Bombay Stock Exchange. MCX stands for Metals and Commodities Exchange. NCDEX is for the agricultural commodities. Scrip Buy/Sell : The stock or commodity that you would like to buy or sell. : A drop down with Buy and Sell as the two values. Order Quantity : The amount / quantity that you would like to buy or sell. Disclosed quantity : The amount that you want to DISCLOSE let the others know that you are planning to buy or sell. This could be a value less than or equal to the order quantity. Stop Loss Trigger Price : The price at which you want to get out if the price moves against you. Let s say you would like to buy at 1000, but take a max loss of 50, your buy price would be ( LIMIT ) : 1000, stop loss trigger price would be : ( ) = 950.

11 Validity : A dropdown with four values : GFD Good for the day Valid for the current day only. GTC Good till closed - Valid until fulfilled this could extend to more than 1 day. GTD Good till date If you want to define the number of days that this order should be fulfilled in, you select this order and define the date by which this order should be closed. IOC Immediate or close Either the order is placed immediately or the order is not placed Order type : Two choices here : Market Order : The market decides here your buy or sell price. Not recommended. You have no control over the price here at all. You almost always end up buying for a Higher Price or selling for a lower price than you had planned. Use the Limit order. Limit Order : This is where you specify the price that you want to buy or sell. You have more control here on the price. Let s see you decide to buy WIPRO in the cash segment on the NSE stock exchange. You select NSE from the exchange dropdown and type in WIPRO in the scrip area and select Buy from the dropdown. You would see the current price and the pending buy and sell orders from the exchange queue. Scrip margin lets you see the amount you need to trade in the cash segment or the margin segment where you need less money but pay a slightly higher brokerage.

12 Let s see you click the Get Quote button. You might see something similar to the following screen.

13 Stock SIP ( Systematic Investment Plan ) You can decide to allocate a fixed amount every month on stocks that you would like to purchase. This below is a sample SIP plan. Let s say I decide to invest 5,000 per month for 12 months on the list of stocks shown below. You can decide what percentage you would like to buy or sell every month. This is just a sample list - a mix of IT, FMCG and Industrial stocks.

14 After entering the details, you can click the CREATE STOCK SIP button to create the SIP. To confirm that the SIP has been created, you can use the menu option : STOCK SIP REPORT to verify it. If you decide to cancel this stock SIP, just click the CANCEL button after a confirmation box, the SIP will be cancelled. If you would like to see the detail of that item, just click the SIP and click the DETAIL button. This is what will be shown.

15 Options Chain - This describes the various the values of CALLS and PUTS for various Future and Option stocks. For example, the following describes the NIFTY Calls and Put options. Increase the zoom percentage to read this better. The various columns are : STRIKE : This is the price where the values will be at the end of EXPIRY - which is 30 Jan You can choose this from the list of dropdowns. OI Open Interest this indicates the number of new contracts being written. Volume : The no of contracts being added. IV Implied Volatility : This is the volatility for the strike price of the stock or value. The IV increases when the market is BEARISH (go down) and decreases when the market is BULLISH (go up). LTP - Last Traded Price : The price at which the scrip was last bought or sold. % Chg - the change percentage could be positive or negative. Bid Qty : What is the qty that the buyers are willing to buy? Bid Price : What is the price that the buyers are willing to pay? Ask Price : What is the price that the sellers are asking for the scrip? Ask Qty : What is the qty that the sellers are willing to sell?

16 Reports Screen Limit : Shows you the amounts that is currently in each account. Equity : Shows the amount in the equity segment. Derivative : Shows the amount in the Futures and Options / derivatives segment. Commodity : Shows the amount in the commodity segment This is what a sample report could look like when you click the Limit option. It shows the amounts positive or negative, any pending withdrawals (from sharekhan to the bank account) in various segments equity / futures and options, commodity and currency segments.

17 Demat Equity This shows the shares that you hold in the demat section. For eg. If you had purchased 50 shares of WIPRO, these would be reflected here. Right now, you don t see anything because I don t hold any shares in the cash segment ( I am a derivatives person ( Futures and Options ) less money, faster results call me lazy!! )

18 Order check your order status This is where the orders that are pending or have executed are entered. From the screen below, you can see that I have purchased an overnight order for SILVERMIC at a buy price of and am planning to sell it as soon as it reaches This could be in one day or more than one days. The money used / margin is Rs approximately for this transaction. Explaining the various columns / fields on the screen Order Id : The order ID in sharekhan trading system. Exch : MCXFO The Metals and Commodities Exchange Futures and Options system. Contract : The SILVERMIC Commodity expiring on 28 Feb 2014 ( means that the orders buy or sell have to be closed on or before this date). B/S Stands for Buy (B) or Sell ( S ). Order Date / Time : The date and time this order was placed. Order Status : Executed this order was placed and executed / closed Pending - this order is still pending. Request Status : TRIGGERRED means that the order has been registered in the sharekhan trading system. Order Qty : The amount / qty of the orders placed. Order Price : The price at which the order was or will be executed ( in case of PENDING orders ) Exec Qty : The quantity that was executed ( bought or sold) Exec Price : The price at which it was executed. LTP : Last Traded Price Validity : GTC Good Till Closed Validity Date : If you have placed an order that says it should close by a date that can be entered here. RMS Code : This is some internal sharekhan code.

19 Ledger Equity, Derivative, Commodity This is the place where you see the transactions transfer- ins, transfer outs, current balances, etc. Position Equity, Derivative, Commodity This is the place where you see your currently open positions. For e.g., in the above screen, I am currently losing or at a loss of Rs. 98 because the current price ( LTP ) is and my net rate is The various columns / fields are shown below. Exch : The exchange on which the contract is traded. Contract : The Commodity, Currency or the Stock being traded along the system. View : Bullish or Bearish This is the sharekhan analyst view : Sometimes correct, sometimes wrong and is known to change when the prices move up or down very fast. My suggestion : Don t rely on this too much do your own technical analysis. INVST Whether INVST or MARGIN - indicates if it is an overnight position or an intra-day position. Open Qty : This indicates If you had a position prior to this one ( overnight from yesterday or prior to that ) Open Rate : What was the previous rate that you had purchased or sold at. Buy Qty : The qty added today. Buy Rate : The rate at which this was purchased. Sell Qty : The quantity that was sold today. Sell Rate : The rate at which the qty was sold. Net Qty : The total of open qty + buy qty sell qty. Net Rate : The net / average rate. Close : The previous close price for this contract. LTP : Last Traded Price Today s MTM : Today s Mark to Market meaning unbooked Profit or Loss Settled MTM : If this was an overnight position any overnight profit or loss. Total MTM : Total Mark to Market Unbooked Profit or Loss. Today s BPL : Today s Booked Profit or Loss if you had closed any position and took a profit or loss, this would be shown here. Total BPL : Total Booked Profit or Loss.

20 If I were to click the contract SILVERMIC I would see something similar to the following screen. This is a live update of the price as the BUY and SELL orders are placed.

21 Well, about two days later, this is what my SILVERMIC position looks like.

22 I have added 1 more overnight SILVERMIC position and this is what my net position is now. A profit of Rs 630 so far. LTP in a green background means that it is currently in an uptrend. LTP in a red background means that it is currently in a downtrend. I have placed a pending order to sell as soon as the price reaches as seen below. The one in the highlighted box is what I am talking about.

23 Option Chain in the reports section shows you the various Futures and Option stocks and their calls and puts values. Eg This was taken on Jan 10, 2014 the day INFY declared it s results for the Quarter Sep Dec The stock (INFY) is up 102 points, (almost 3 %), currently trading at The various columns are : STRIKE : This is the price where the values will be at the end of EXPIRY - which is 30 Jan You can choose this from the list of dropdowns. OI Open Interest this indicates the number of new contracts being written. Volume : The no of contracts being added. IV Implied Volatility : This is the volatility for the strike price of the stock or value. The IV increases when the market is BEARISH (go down) and decreases when the market is BULLISH (go up). LTP - Last Traded Price : The price at which the scrip was last bought or sold. % Chg - the change percentage could be positive or negative. Bid Qty : What is the qty that the buyers are willing to buy? Bid Price : What is the price that the buyers are willing to pay? Ask Price : What is the price that the sellers are asking for the scrip? Ask Qty : What is the qty that the sellers are willing to sell? (the various columns has been covered on Page 14 earlier there it was for NIFTY, this is for INFY ).

24 MARKETWATCH This is a goldmine it can give you a pretty good idea of what s in trend UP or DOWN. For eg. This below is from the dropdown NSE FO Top gainers the stocks which have gained the most today in the Futures and Options section of NSE Stocks. Look at the top three : 600 % gain ( 6 times ), 420 % gain ( 4.2 times ), 370% gain ( 3.7 times ) in JUST one day ( Jan 10, 2014 ). The following are some of the other options available under the menu. As you can see, a lot of filters with all sorts of options available. You can slice and dice the information any way you want it. Please take your time learning this page. It can give you the tending stocks (and their derivatives futures, calls and puts) very fast.

25 IPO/Bonds This section is used to apply for IPO s ( Initial Public Offerings ), Bonds, NCD (Non Convertible Debentures)

26 If any offers are available, then, they are shown here. For instance, right now, there is ONE BOND offer and three NCD s ( Non Convertible Debentures ) available along with the start and end dates shown If you have applied for any IPO s, they results would be shown in the order summary. In case you want to apply for an IPO, you need to transfer money into an IPO account first. In the above case, I had applied for about 130 shares of GPPL IPO ( Gujarat Pipavav Ports Ltd ) - I did NOT get any shares allocated to me it was oversubscribed.

27 Mutual Funds Section In this section, you can shortlist your mutual funds based on various criteria such as OWNER (Birla, Reliance, SBI, UTI, DSP Blackrock, etc Blackrock, by the way, is the world s biggest asset management company roughly 4 trillion dollars of assets under management ( AUM ), according to their prospectus as of 30 Sep It is headed by Larry Fink. More details at the following link : So, coming back to the main issue, you choose the mutual fund family and then the type of fund equity, liquid, etc from these two sets of dropdowns And then click the FILTER button. The mutual funds that satisfy these conditions will be shown below the conditions. For eg. I choose ICICI as the mutual fund family and all types of funds. This is what I saw.

28 The columns explained : Scheme Name - Which mutual fund and what is the name of the fund. Type : Open Ended means that they will accept new contributions. Closed Ended means that new members / contributions are NOT accepted. Nature : Equity, Fixed Income what do they invest in. Min Invest what is the minimum investment needed. Addln Invest What is the additional investment after the min. investment. Min SIP Invest If you are going for the Systematic Investment Plan what is the amount needed. NAV Rs What is the NET ASSET Value of this mutual fund It is similar to the price of a stock. NAV Date : What is the last date on which this Net Asset Value (NAV) was calculated. MF IN DEMAT Flexi SIP Available Whether this Mutual Fund is available in Demat and SIP Formats.

29 Tax Planning Mutual Funds ( ELSS - Equity Linked Savings Schemes ) From under the Order menu, choose ELSS. This will list all the tax savings / planning funds that are available along with the other details. ELSS Mutual funds have a lockin period of 3 years, meaning, you cannot withdraw your funds for 3 years. You might see something like this : If you are looking for a particular fund house, you can choose from the drop down of Fund House and then click the Filter button.

30 Sector Schemes Let s say that you are looking at certain sectors to invest in, say Infrastructure or Banking and Financial Services or Technology funds, you can find these funds here. Choose Sector schemes from the order menu. You might see something like the screen shown below.

31 If you are looking for new and fresh funds that are going to OPEN up in the near future, you can look at NFO ( New Fund Offers ) From the order menu, choose NFO New Fund Offers. You might see something like this :

32 FMP Fixed Maturity Plans Fixed Maturity Plans are funds that invest in company or government debt but they are better in tax efficiency that is you pay less in income tax compared to Fixed Deposits of Banks. So, if you are in a higher tax bracket, this is the instrument for you. From the order menu choose FMP and you might see something similar to this.

33 Mutual Funds Research This is where you can get the top equity funds and top SIP (Systematic Investment Plan ) Mutual Fund Picks. Choose the TOP EQUITY FUND from the Research drop down. You might see something like this. There are names of various funds under various categories with their 1, 3 and 5 years average returns and their returns since inception. This is will help you shortlist which funds to go for. Mind you there is always a disclaimer There is no guarantee of FUTURE results based on past performance. I won t be stingy here - here are all the screens that I see as of Jan 15, 2014

34 Mutual Fund Top SIP Funds Here is the complete list of screens And here is the disclaimer from sharekhan.

35 The other menus in the Mutual Fund section should be easy to understand.

36 Pending : Sharekhan Web Trading Portfolio Option Chain News Research Chart Using TradeTiger to draw and analyse charts Technical Analysis the Tools Please watch this space in the near future for these pending articles.