LETS CONTINUE

WELL HI THERE.THERES BEEN A GAP OF ALMOST A FORNIGHT BETWEEN TWO POSTS AND HOPE U MIGHT HAVE APPLIED FOR PAN-CARD TILL NOW.
WELL LETS ASSUME U HAVE GOT A PAN CARD AND EVEN OPENED A DEMAT ACCOUNT AT YOUR BROKER (CONFIRMED WHETHER HE IS SEBI REGISTERED?).

NOW THERE ARE SOME OPTIONS WHEN IT COMES TO YOUR DEMAT ACCOUNT, A DIAL-IN ACCOUNT,ONLINE ACCOUNT ETC.YOUR BROKER WILL PROVIDE YOU THE OPTIONS AND SELECT THE ONE YOU ARE COMFORTABLE WITH.

LETS TRY AND UNDERSTAND WHAT TRANSACTIONS TAKE PLACE IN THE STOCK EXCHANGE.
BASICALLY ITS ALL ABOUT BUYING WHEN CHEAPER AND SELLING WHEN DEARER.

LETS BEGIN WITH THE PREREQUISITES

1. PAYMENTS ARE TO BE DONE ONLY THROUGH CHEQUES,AND THAT TOO FROM YOUR SAVING ACCOUNT ONLY.
2.T+2:
HERE T STANDS FOR TRANSACTION DAY ,THAT MEANS T+2 STANDS FOR TWO DAYS AFTER TRANSACTION.ALL YOUR PAYMENTS NEED TO BE DONE WITHIN T+2.
FOR EG IF YOU BUY SHARES ON MONDAY THEN YOU SHOULD PAY FOR THE SAME WITHIN TWO WORKING DAYS (SAY WEDNESDAY IN CASE OF NO HOLIDAYS IN BETWEEN).SIMILARLY THE SHARES WILL APPEAR IN YOUR DEMAT ACCOUNT WITHIN T+2.
CONVERSELY IF YOU SELL YOUR SHARES YOU ARE PAID WITHIN T+2 AND SHARES DEDUCTED IN THE SAME PERIOD.IT IS ESSENTIAL TO NOTE THAT WHEN I SAY "YOU ARE PAID" IT MEANS THAT MONEY IS DEPOSITED IN YOUR DEMAT ACCOUNT BALANCE.
#### ASK YOU BROKER ABOUT HIS INSTITUTION'S TIE-UP WITH VARIOUS BANKS FOR ECS(ELECTRONIC CLEARING) .HOLDING A SAVING ACCOUNT IN SUCH BANKS HELP YOU MAINTAIN YOUR ACCOUNT FROM HOME.####


3.CONTRACT NOTE:
I MIGHT HAVE TOLD YOU ABOUT THIS BEFORE BUT NO HARM REPEATING.
IT IS A LEGAL DOCUMENT WHICH KEEPS A RECORD OF ALL THE TRANSACTIONS BETWEEN YOU AND YOUR BROKER.ANY TRANSACTION IS INCOMPLETE (EVEN INVALID) WITHOUT THE CONTRACT NOTE.
IT IS IMPORTANT TO NOTE THAT SEBI RECOGNIZES THE CONTRACT NOTES AND IN CASE OF ANY FORGERY IT IS A VITAL DOCUMENT TO GET YOU INVESTMENT BACK SAFELY.