[SmartCat]

Originally Posted by condor

I hold a DP account, and the company has sent me a mail asking me to update my financials. I dont understand why should I give all this to them. It is a different matter if the IT dept asks for it.

SEBI rules. But this is required only if you trade in futures and options. For stock investors, this is not required.

Looks like F&O trading is enabled on your account by default. Just ignore the mail. The broker will call you up and then disable F&O trading.

[condor]

Originally Posted by SmartCat

SEBI rules. But this is required only if you trade in futures and options. .

Thanks, SmartCat. Will do that.

[Sherlocked]

I had opened a trading plus demat account with Zerodha a few months back and since then they are asking me to send them a signed Power Of Attorney document from my side to enable them to sell the shares on my behalf.

Is it safe to sign the POA and give them the power if I want to buy and sell shares only through online form?

I have not used this account till now to buy and sell shares but looking to apply to an IPO for the first time just now.

Asking this since recently it happened that Karvy brokers mis-utilised the POA of their clients and pledged the shares without their knowledge.

Thanks.

[aadya]

Originally Posted by Sherlocked

I had opened a trading plus demat account with Zerodha a few months back and since then they are asking me to send them a signed Power Of Attorney document from my side to enable them to sell the shares on my behalf.
Thanks.

To my knowledge its a mandatory requirement for any brokerage to have POA. You might have opened an account but without POA brokerage cannot sell shares as they are not legally authorised by you.

This is a risk with any brokerage and that is the reason reputed brokerages with more reliability charge more, as possibility of malpractice is less. Newer and discount brokerages we should take risk in this aspect.

[carboy]

Originally Posted by Sherlocked

I had opened a trading plus demat account with Zerodha a few months back and since then they are asking me to send them a signed Power Of Attorney document from my side to enable them to sell the shares on my behalf.

This is a must if you want to do online trading. Otherwise you have give written permission for them to fetch your stock from Demat & sell each & every time.

[Sherlocked]

Originally Posted by aadya

To my knowledge its a mandatory requirement for any brokerage to have POA.

Originally Posted by carboy

This is a must if you want to do online trading. Otherwise you have give written permission for them to fetch your stock from Demat & sell each & every time.

Thanks! I just spoke to the Zerodha Customer Care and the executive told me I need not send the POA document from my side, instead I can do it online through my Zerodha Account. Looking to evaluate this option.

https://support.zerodha.com/category...f-attorney-poa

[praveen_v]

Originally Posted by Sherlocked

Thanks! I just spoke to the Zerodha Customer Care and the executive told me I need not send the POA document from my side, instead I can do it online through my Zerodha Account. Looking to evaluate this option.

https://support.zerodha.com/category...f-attorney-poa

How is this different from a physical POA? Is there any way the broker can misuse this option? The terms in the screenshot in the linked page seem to indicate Zerodha gets the authorization for any obligation through your orders. Please update if you do go ahead with this.


I have to move my Demat to Zerodha now and still trying to find if there is any way to avoid this POA.

[Sherlocked]

Originally Posted by praveen_v

How is this different from a physical POA? Is there any way the broker can misuse this option? The terms in the screenshot in the linked page seem to indicate Zerodha gets the authorization for any obligation through your orders. Please update if you do go ahead with this.

I have exercised this option. I have no idea how this is different from the physical POA. Although my limited understanding says that both are the same. We are just giving authorization to the broker to transfer shares from our demat account to his demat account whenever we execute a sell order online.

I have to move my Demat to Zerodha now and still trying to find if there is any way to avoid this POA.

Only way to avoid it is as far as i have understood, is that you have to sign a Delivery instruction slip from your end whenever you execute a sell order for the shares you have taken the delivery.

Experts may elaborate further.

[S_U_N]

Originally Posted by SmartCat

All these articles are just beating around the bush. It is quite simple to check if your stock broker is pulling the wool over your eyes.

Thank you for the tips. I shall find some time to setup an account with NSDL.
Typically I have always received a contract note from BSE for every transaction in the past and dividends are coming to my bank account (though I have not checked each and every instance).

I have not been very active in stocks for the last 1-1.5 year but perhaps 2020 might change that.

Meanwhile, in other news, after 3 months, finally HDFC has opened an NRO PIS account for me. Overall experience with HDFC Pune was not very good. I had to chase them a lot to get this far (they did not fill out the form properly).

And now the sad part is that Mumbai PIS team says that they did not receive any form for NRE PIS - when I had clearly told HDFC Pune that I need both PIS accounts. So, now I have to start all over with the NRE PIS.

[RiGOD]

What are some good literature (be it books, website, blog or YouTube channels) that gives a fair idea on long term investing in stocks, stock picking, fundamental analysis of a company etc.?

[joslicx]

Originally Posted by RiGOD

What are some good literature (be it books, website, blog or YouTube channels) that gives a fair idea on long term investing in stocks, stock picking, fundamental analysis of a company etc.?

Start with Dr. Vijay Malik's site. There is no better teacher than that

http://www.drvijaymalik.com

Once you have devoured this, and still hungry for more, then you can read the books. There are so many of them. Some of the most fundamental ones are

The Intelligent Investor (Benjamin Graham). This is the Bible of investing, but not easy to read.

One up on wall Street (Peter Lynch). This one is far easier to read. And lot of practical advice. This one is my favourite.

Value Investing and Behavioral Finance (Parag Parikh). If you are into long term Investing, then it's important to realise the importance of behaviour. Nobody teaches it better then Mr Parikh

There's hundreds of others. Risk is one subject to learn. There's need to realise that chance is a big, big factor in investing. Then there's also need to learn about local market (BSE/NSE in India, for example. One great book that gives nice historical perspective is Santosh Nair's Bears, Bulls and Other Beasts)

Of course, if intention is to learn trading, then maybe there are other better books and other resources. I'm not much familiar as i haven't been successful at trading so far.

[RiGOD]

Originally Posted by joslicx

The Intelligent Investor (Benjamin Graham). This is the Bible of investing, but not easy to read.

One up on wall Street (Peter Lynch). This one is far easier to read. And lot of practical advice. This one is my favourite.

Value Investing and Behavioral Finance (Parag Parikh). If you are into long term Investing, then it's important to realise the importance of behaviour. Nobody teaches it better then Mr Parikh

Thanks a lot for the suggestions mate.

Another query to fellow BHPians. I am trying to learn the basics of Fundamental Analysis of stocks and for some methods, the vales of P/E and EPS are required. I compared the data from Morningstar and Valueresearch and found them to be poles apart in some cases. Some YouTube analysts suggest to consider values from Valueresarch, but after their site got revamped, only 5 years historical data is available.

Can anyone suggest a good source from which I can extract the EPS, P/E etc. of shares,? Atleast 7 years' historical data is necessary.

[SmartCat]

Originally Posted by RiGOD

I am trying to learn the basics of Fundamental Analysis of stocks and for some methods, the vales of P/E and EPS are required. I compared the data from Morningstar and Valueresearch and found them to be poles apart in some cases. Can anyone suggest a good source from which I can extract the EPS, P/E etc. of shares,? Atleast 7 years' historical data is necessary.

There is standalone PE ratio and consolidated PE ratio for companies that have subsidiaries. Eg: Tata Motors owns JLR too. Standalone PE will give you the valuation of Indian business only (CVs and cars). But when you look at consolidated PE ratio, it considers both JLR financials and Tata Motors India biz financials.

Some website display only standalone PE ratio (which is useless) instead of consolidated PE ratio. www.screener.in data is mostly accurate, and you get financials for the last 10 years.

[RiGOD]

Originally Posted by joslicx

Start with Dr. Vijay Malik's site. There is no better teacher than that
http://www.drvijaymalik.com

I'm currently going through the free content available on his website and found it to be quite informative. Have you gone through any of his premium service books? If so, how're they?

On a side note, I finished reading "How to Avoid Loss and Earn Consistently in the Stock Market" by Prasenjit Paul. The book was easy to understand and the stock selection and valuation technique given in the last chapter seemed pretty impressive. Has anyone managed to be successful by selecting stocks based on the criteria?

Originally Posted by SmartCat

Some website display only standalone PE ratio (which is useless) instead of consolidated PE ratio. www.screener.in data is mostly accurate, and you get financials for the last 10 years.

Thanks for the recommendation mate. Currently using the Screener tool of the website to pick the right stocks for learning analysis

[S_U_N]

I just got my "Resident Indian" demat account converted to "Non-Resident Indian" demat account on the FundsIndia platform. The process was initiated in the end of August 2019 and has now been completed. This is mainly due to the poor handling of the case by HDFC since the guys did not fill in the form properly for the PIS account.

Long story short, if someone needs to create a PIS account (which is an additional account that now appears in my NetBanking portal as well), then make sure you are talking to the NRI team in the bank. It makes more sense to go directly to the NRI branch of your bank since most other bank staff do not know what they are talking.

The PIS letter is what the broker needs from the bank without which they cannot allow you to do the conversion.


-----on another topic-----
Is there any implication if as a NRI Indian citizen, I buy stocks of US companies? Will RBI/ FEMA/ IT department etc. have any issue with such?
(Indian has lot of regulations and I don't want to get into trouble - so just making it double sure).