Issued PAN card status 2016

In order to start share trading in India three kinds of accounts are important, a trading account having a broker, a Beneficial Owner account that has a Depository Participant and also a bank account. It is advisable to choose an online trading account as opposed to an off line account which has a broker. Online share trading allows trading of a single share too. Online share dealing is quite possible through banks that provide online banking or core banking facilities. Most online stock trading companies have tie-ups with banks for online transfers; therefore after you select your internet stock broker, even they'll also show you through the process.

The account opening way of the broker has four components. The Duplicate pan card Form, separate agreements for share trading on BSE and NSE, Risk Disclosure Document and certain power of attorneys that are delivered. Ensure you browse the power of attorney carefully and you're authorizing just for delivering shares to interchange on your behalf against your sale trades but not for any thing else. The KYC form captures your data and your financial worth. This Form is usually accompanied with Proof within your identity, proof your residence and Permanent Account Number (PAN) card. Proof of identity might be given by submitting a replica of your Passport, Voters card etc. You need to get your photograph attested from your banker. Proof of address is ration card, latest power bill etc. All documents must be produced in original for verification.

The next document is usually a set of agreements between share broker plus the client. This agreement really needs to be separately signed for BSE and NSE. Both the agreements are similar and have been prescribed by SEBI. There is additionally a separate agreement for Depository operation involving the Depository Participant and also the Beneficial owner. If you are working by using a sub share broker then there is usually a tripartite agreement between your share broker, sub share broker and client. This agreement means that you can do only cash market trades; in case you want to handle on derivatives market a bipartite agreement is needed. All these agreements should be stamped.

You employ a choice of opening UIDAI Status your depository account having an entity who specializes only in rendering depository services or with all the share broker with who you are going to register. But if you choose online share trading facility versus the aforementioned choice will never be available and invariably you can be asked to open depository account with all the share broker you opt.

It is not hard to maintain, simpler and straight forward if the depository account is while using broker because doing so allows them to deliver shares to your exchange for you.

Make sure you look at the risk disclosure document before you sign and submitting to your share broker. This document will show you the different risk a part of your transaction for which you'll be responsible. There is an inherent likelihood of price variation (volatility) on the securities you've dealt in, risk because of low liquidity inside a particular company, risk as a result of more than normal difference between anyone wanting to buy and another needing to sell. The document also explains certain risk mitigation measures that may be used by you.