FAQ's

Sr No. Action FAQs

 

1    

 Q  What is the difference between E-Margin, Intraday and Cash?
A Cash Intraday e-Margin
 1.Require to hold funds equal to the full order value.  1.Margin required 30% - 60 % (depending on   the scrip) of the order value.  1.Margin required 30% - 60 %* depending on the scrip.
 2. Delivery based transaction, settled on T+2 day.   2.Same day Square off/convert to delivery transaction.  2.Transaction can be squared off /converted to delivery till  T+5.
 3. Short Sell is allowed.  3.Short Sell is not allowed.

 

 

2

 Q  What is the difference between NRE & NRO Bank Account?
A Particulars NRE a/c (Non-Resident External a/c) NRO (Non-Resident Ordinary Rupee a/c)
 Who can open an account  NRIs  Any person resident outside India
 Joint account of two or more NRIs  Permitted  Permitted
 Joint account with another person resident in India  Not Permitted  Permitted
 Currency in which account denominated  Indian Rupees  Indian Rupees
 Repatriability: Principal  Freely repatriable  Not repatriable
 Interest  Freely repatriable  Freely repatriable
 Foreign Currency Risk  Account holder is exposed the fluctuations in the value of INR  Account holder is   exposed the   fluctuations in the   value of INR to the   extent of interest   amount
 Types of account  Current, Saving, Fixed deposits  Current, Saving, Fixed deposits
 Period of fixed deposits  For the period as announced by the deposit taking bank  For the period as announced by the deposit taking bank
 Rate of interest  Banks are free to determine the interest rates  Banks are free to determine the interest rates

 

 

3

 Q  How interest and brokerage will be charged to my account?  
A  Interest will be charged @21.24 % on outstanding debit balance from the pay-in date for positions taken under e-Margin as below:-  
 Position taken  Position squared off Brokerage to be charged   No of days interest to be levied 
 T day  T day  Equity Sq off  Nil     
 T + 1 day  Equity Delivery  1 Day + no of Holidays**
 T + 2 day  Equity Delivery  2 Day + no of Holidays**
 T + 3 day  Equity Delivery  3 Day  + no of Holidays**
 T + 4 day  Equity Delivery  4 Day + no of Holidays **
 T + 5 day  Equity Delivery  5 Day  + no of Holidays**

**Number of Holidays means Saturday, Sunday and trading/ settlement holidays if any.

 Example 1:- Client has bought “A” stock in e-Margin Product on Wednesday and squared off the e-Margin position on Thursday. In this case interest will be levied for 3 days starting from Friday till Sunday.

 Example 2:- Client has bought “A” stock in e-Margin on Wednesday and squared off the e-Margin position on Thursday In case Monday is trading holiday, interest will be levied for 4 days staring from Friday till Monday

 On the sq off date if the position is taken in the same scrip, then on both the legs delivery brokerage will be charged.

 No money will be pulled from the bank account (except margin) for open position until same has been squared off or converted into delivery, though client had Bank balance in his bank a/c

 

 

4

 Q  What is the quantity that can be submitted for First leg order?
A  The max quantity that can be submitted for fresh orders is the total of best 5 Bid/offer quantities that is available in the best bids and offers. If the quantity that one input is greater than the quantity available in the best 5 bids and offers then the order will not go through.
 Assuming that one wants to place a buy order for 500 shares @ 50 in ABC Scrip, and the first 5 offer quantity available for the buy order is as under:
Offer Qty. Offer Price
150 49
100 49.5
50 48.75
50 48.25
25 48.25

 In the above scenario, the first 5 Offer quantity available is 375 and since the buy order quantity placed is 500 which exceeds the best 5 offer quantity, it would be rejected by the system.

 Similar would be the case in Sell order, wherein if the total sell qty is greater that the first 5 Bid price it would be rejected. The maximum order qty to place should be equal to the first 5 bid/offer quantity available at that point of time.

 

5

 Q  What will be the price at which the First Leg order will be placed?
A  The price of First leg order would be calculated as the weighted average price of the best 5 bids and offers available for sell and buy order respectively.
 Assuming that one wants to place a buy order for 500 shares @ 50 in ABC Scrip, and the first 5 offer quantity available for the buy order is as under:
Offer Qty.

Offer Price

150

49
100

49.5
50

48.75
50

48.25
25  48.25
 Calculation of Buy price

 

Offer Qty. Offer Price Value
150 49 7350
100 49.5 4950
50 48.75 2437.5
50 48.25 2412.5
25 48.25 1206.25
375   18356.25
 Weighted average price would be 48.95

 

5 Q  It takes between two to five working days for an account to be opened, depending on the type of account. The table below gives more details.  
A Working Day 3 in 1 2 in 1 2 in 1 1 in 1
 [Savings Demat Trading]  [Savings Trading]  [Demat Trading]  [Only Trading]  
 Day 1  Form received and processed at HSL  Form received and processed at HSL  Form received and processed at HSL  Form received and processed at HSL
 Day 2  SB Form sent to Bank CPU & DP to DP CPU for Account Opening.  SB Form sent to Bank CPU  DP form sent to DP CPU for Account opening  Form Submitted at Bank & DP CPU.
 SB A/c Opened*  SB A/c Opened  DP A/c Opened  Trading A/c opened and Welcome kit Despacted**  
 Day 3  Bank a/c linked to Trading A/c  Bank a/c linked to Trading A/c  Trading A/c opened and Welcome kit Despatched**  
 Day 4  Demat A/c Opened  Trading A/c opened and Welcome kit Despatched  
 Day 5  Trading A/c opened.   
 Welcome kit Despatched

 

Q  How long does it take to open an account?    
6 A It takes between two to five working days for an account to be opened, depending on the type of account. The table below gives more details.    
Working Day 3 in 1 2 in 1 2 in 1 1 in 1
[Savings Demat Trading] [Savings Trading] [Demat Trading] [Only Trading]  
Day 1  Form received and processed at HSL  Form received and  processed at HSL  Form received and processed at HSL  Form received and processed at HSL
Day 2  SB Form sent to Bank CPU & DP to DP CPU for Account Opening.  SB Form sent to Bank CPU  DP form sent to DP CPU for Account opening  Form Submitted at Bank & DP CPU.
SB A/c Opened*  SB A/c Opened  DP A/c Opened  Trading A/c opened and Welcome kit Despacted**  
Day 3  Bank a/c linked to Trading A/c  Bank a/c linked to Trading A/c  Trading A/c opened and Welcome kit Despatched**  
Day 4 Demat A/c Opened  Trading A/c opened and Welcome kit Despatched    
Day 5 Trading A/c opened.   
Welcome kit Despatched    
 * Subject to availability of Funds
 ** Subject to client being already registered for Net Banking for Saving and Demat Account else one more day is added to the TAT for net banking registration.

 

Q Intermediary Charge Head Service Charges Method of Deduction
7 A  POP charges (Maximum) Permissible Charge for each subscriber)

Initial subscriberTo be collectedInitial & subsequent transaction upfront

 Non – Financial transaction 

 Rs.125/-   To be collected
 Initial & subsequent transaction upfront   
0.25% of the contribution amount,
subject to minimum of Rs 20/- .
Rs. 20/-
 CRA (Central RecordKeeping Agency)      PRA Opening Charges Annual PRA Maintenance cost perAccount Charges per Transaction Rs.50  Through cancellation ofunits   
 Rs.190
 Rs.4
 Custodian (On asset  Asset Servicing charges 0.0075% p.a Through NAVDeduction
 value in custody)
 NPS Trust charges  NPS Trust charges 0.01% Through NAV Deduction
 PFM charges  Investment Management Fee 0.01% Through NAVDeduction
 Exclusive of Applicable taxes.
 * Service tax & other levies as applicable will be levied.
 * Other Service request will attract additional Rs.20/- each + service tax.

 

Q  How does SOR work?    
8 A  If for any scrip the prices available on both the exchange are the same then order will be executed on the exchange where more quantities are available. Illustration: Market Depth: Offer Price & Quantity
NSE - Offer/Ask BSE - Offer/Ask
Quantity Price Quantity
500 101 1500
100 102 100
100 104 100
100 106 100
 Buy Order Quantity: 1000
 Preferred Exchange: NSE
 Order Placement/Execution will be as follows;
 1000 Quantity will be placed in BSE at Rs.101 since entire order quantity will be executed at the mentioned price.

 

Q  What if both rates & quantity is same on the exchange?
9 A  If for any scrip the available prices and quantities are same then order would be sent to the preferred exchange (default preferred exchange is NSE. One can change the same by visiting My Details section of HDFC Securities trading portal).
     
Illustration: Market Depth: Offer Price & Quantity
NSE - Offer/Ask BSE - Offer/Ask
Quantity Price Quantity
1500 101 1500
100 102 100
100 104 100
100 106 100
 Buy Order Quantity: 1000
 Preferred Exchange: NSE
 Order Placement/Execution will be as follows;
 1000 Quantity will be executed at Rs. 101 in NSE. Order will be placed on NSE, since NSE is defined as the preferred exchange and sufficient quantity is available in both Exchanges.

 

Q  What documents are required to open an account?
10 A  THE FOLLOWING DOCUMENTATION IS REQUIRED FOR OPENING AN ACCOUNT WITH US: General Our Account Opening form. Non-Mandatory Rights & Obligations as applicable. Power of attorney  (required incase clients want to avail online trading facility). Bank and DP account opening forms. Photographs for all account holders for bank and DP accounts, and that of the sole account holder for securities trading account. Bank and DP agreements in case of three-in-one accounts. Application for Net Banking (third party transfers). Application for Net Banking (demat accounts). IN ADDITION TO THE ABOVE, THE FOLLOWING SUPPORTING DOCUMENTS ARE NEEDED Individuals Photo ID proof: Three copies of either a PAN Card / Voters ID / Passport / Driving License (learners also acceptable) / UID (Aadhaar) are required as the customer's photo identity proof (Mandatory- If a customer does not have PAN Card, then he/she cannot open a trading account). Address proof: Telephone bill / electricity bill / bank statement not more than 3 months old / bank passbook / ration card/ passport / voter Id card/ registered Lease or Sale Agreement for residence/ rriving License / flat maintenance bill / insurance copy. The name & address on the proof should match with the name and residential address mentioned on the application form. Corporate accounts Copy of the balance sheets for the last 2 financial years (to be submitted every year). Copy of the latest share-holding pattern, including the list of all those holding control, either directly or indirectly, in the company in terms of SEBI takeover Regulations, duly certified by the company secretary/Whole time director/MD (to be submitted every year). Photograph, POI, POA, PAN and DIN numbers of whole time directors/two directors in charge of day-to-day operations. Photograph, POI, POA, PAN of individual promoters holding control - either directly or indirectly. Copies of the Memorandum and Articles of Association and Certificate of Incorporation. Copy of the Board Resolution for investment in the securities market. Authorised signatories list with specimen signatures. Copy of pan card of company. Copy of cancelled cheque leaf /pass book / bank statement containing name of the company. In case the name of directors differs from the name in the Memorandum and Articles of Association of the company, then submit form 32. Net Banking Board Resolution. Authorised director's customer ID. POA duly signed by the authorised signatory (authorised for share trading). Indemnity (on Rs.200 stamp paper) all directors signature required. Partnership accounts Copy of the balance sheets for the last two financial years (to be submitted every year). Certificate of registration (for registered partnership firms only). Authorised signatories list with specimen signatures. Photograph, POI, POA, PAN of partners. Partnership deed. Undertaking/resolution from partners to authorise any of the partners to operate the account. PAN No. Bank Statement. Form A of the partners. Demat account letter signed by the partners i.e., the account is for partnership firm. Other mandatory requirements for opening partnership accounts. Investment clause to invest in funds, securities. Demat account in the name of the partner. Trust accounts Copy of Resolution to open trading, demat, saving account. Copy of Resolution authorising any one/more than one trustee to operate the account. Copy of PANCARD of the Trust. Photo identification proof of authorised trustee. Copy of the bank statement. Required photograph of Managing Trustee. Copy of the balance sheets for the last 2 financial years (to be submitted every year). Certificate of registration (for registered trust only). Copy of the trust deed. List of Trustees certified by managing trustees/CA. Photograph, POI, POA, PAN of Trustees. HUF PAN of HUF. Deed of declaration of HUF/List of coparceners. Bank passbook/bank statement in the name of HUF. Photograph, POI, POA, PAN of Karta. Unincorporated association or a body of individuals Proof of Existence/Constitution document. Resolution of the managing body & Power of Attorney granted to transact business on its behalf. Authorized signatories list with specimen signatures. Banks/Institutional Investors Copy of the constitution/registration or annual report/balance sheet for the last 2 financial years. Authorized signatories list with specimen signatures. Army/ Government Bodies Self-certification on letterhead. Authorized signatories list with specimen signatures. Registered Society Copy of Registration Certificate under Societies Registration Act.Authorized signatories list with specimen signatures. List of Managing Committee members. Committee resolution for persons authorised to act as authorised signatories with specimen signatures. True copy of Society Rules and By Laws certified by the Chairman/Secretary. Incase of any further queries, please feel to contact our Customer Care desk at OR call on 0 + local area code + 39019400.

 

Q  Essential information for Day Trading
11

A

 

 

Essential information for Day Trading

1. Margin trading allows you to trade in Equities on an intra-day basis i.e. margin orders placed during the day are squared off at the end of the day.

2. Margin trading is possible on select stocks on the NSE and the BSE, which are not in the No- Delivery Period'.

3. You may take long buy or short sell position in select stocks.

4. The margin percentage for a stock may be uniform for all stocks or may vary for each stock. To find out whether or not a stock can be traded on a margin basis as well as the required margin percent for the stock, please use the Stock Details screen.

5. If a client buys a stock on one stock exchange (for example BSE) and sells on another stock exchange (for example NSE), it does not qualify as an intraday trade. The purchase and sale of stocks has to be done on the same stock exchange on the same trading day. The pending order has to be closed in the same exchange it was opened in. Else it will be considered as a CNC order.

Getting started To successfully place Equity orders on a margin basis, you need to first...

1. Know the margin required for the order. The Know Your Margin screen (Equities & Derivatives - Know Your Margin) allows you to determine the margin required for the order. It also shows you the additional margin required to place your order in the event that you already have existing margin funds.

2. Check whether or not your available margin limits are sufficient for placing the order from the Limits screen (My Trading Account -> Limits -> Margin: Combined -> Available)

3. Allocate the necessary funds in your bank account for the margin order using the Funds Hold & Release screen (My Trading Account -> Hold & Release -> Funds Hold & Release) in the event that your available margin limits are insufficient.

Place the margin order from the Buy & Sell screen (Equities & Derivatives -> Buy & Sell) once you have done the above.

Note: 1. Creating the necessary hold for your margin order cannot be done while placing the order. The margin hold must be created before placing the margin order.

2. Margin orders will be permitted only against Funds regardless of whether the order is a buy or sell one. Margin trading will not be permitted against holds on shares, i.e. Margin Limits in the Limits screen (My Trading Account -> Limits) will not be assigned against hold on shares.

3. At the beginning of the day, the previous day's excess margin limits will be available as Cash-n-Carry limits in the Limits screen (My Trading Account -> Limits). However, you will not be able to transfer limits from Cash-n-Carry to Margin to place margin orders.

4. You can convert your margin position to delivery from the Trade Book (My Trading Account -> Books -> Trade Book) at any time during the day by creating a securities hold (for sell transactions) or a funds hold (for buy transactions). The conversion will be done at trade level. You will be prompted for the necessary funds during each conversion at trade level, subject to available Cash-n-carry limits.

5. You are requested to keep additional funds in your bank account over and above the minimum account balance. This will enable HDFC Securities Ltd to create holds on your bank account in the event of margin shortfall at the end of the day.

6. Off-market margin orders are not permitted. Squaring off margin orders at the end of the day Fresh margin orders can be placed upto 2.45 p.m. Between 2.45 p.m. and 3.00 p.m., you can only: Square off your margin position from the Margin Book (My Trading Account -> Books -> Margin Book) Convert your margin positions to delivery (explained above) from the Trade Book (My Trading Account -> Books -> Trade Book) After 3.00 p.m: Margin trading will be suspended for the day. HDFC Securities Ltd will cancel all your pending margin orders. HDFC Securities will attempt to square off all your existing open positions, irrespective of whether the positions are making a profit or loss. The timings mentioned above are subject to change and HDFC Securities Ltd, considering the Risk containment measures, may disallow the product at its own discretion / or square off your margin positions at any time of the day for mark to market losses or foreseeing / considering market conditions. Squaring off margin orders on account of margin shortfalls or Risk containment measures You are requested to monitor the Net Liquidation Value percentage, as shown in the Limits screen (My Trading Account -> Limits). In case your Net Liquidation Value percentage as shown in the screen mentioned above reaches 70%, we may square off all your open positions. You are requested to place a margin funds hold from the Funds Hold & Release screen (My Trading Account -> Hold & Release -> Funds Hold & Release) in your bank account to bring the Net Liquidation Value Percentage back to 100%.

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