[airbus]

Originally Posted by SmartCat

Better to keep it in a couple of brokerages

There may be a negative side of having multiple trading/demat accounts. I remember getting an SMS few years back when I had three trading/demat accounts. The message stated that as I have more than one account, I will not be eligible for benefits under retail investor category. Then saw for the same stock we were holding, my wife got an offer for retail investors but I did not. I have closed other two accounts since then and currently having only Zerodha.

[vinu_h]

Did Infibeam drop 50% today because of it's 1:1 bonus issue ? If so, I don't see the bonus shares in my portfolio.

[sunilch]

Originally Posted by vinu_h

Did Infibeam drop 50% today because of it's 1:1 bonus issue ? If so, I don't see the bonus shares in my portfolio.

Please read a bit on how and when the bonus shares are credited and also on the record date.

Same logic applies to Splits as well as Dividends.

You will get the answers for the same


-Sunil

[AMG Power]

ICICI Securities requires a Power of Attorney that states in brief (among other things):

“ICICI Securities may transfer all the money and / or securities in my account to ICICI Securities without any further instructions from me.”

Attaching a copy of the relevant clause:



Questions:1. How safe is such a PoA ? 2. Is this standard with other Demat / Trading account - HDFC doesn’t have one. 3. Are there any risks / legal complications that could arise out of such a POA?

Thanks in advance.

[SmartCat]

Originally Posted by AMG Power

Questions:1. How safe is such a PoA ? 2. Is this standard with other Demat / Trading account - HDFC doesn’t have one. 3. Are there any risks / legal complications that could arise out of such a POA?

Standard if day trading, margin trading, futures & options trading is allowed in a particular account. If you want to do any of the above, you have to pledge shares or mutual funds as collateral. What this agreement states is that they have to the right to takeover the collateral if you do not honor your commitments.

They have NO right to transfer your shares to themselves (and hence cannot do it either) if you are just a straightforward long term stock investor. The shares and mutual funds will be in your name (as mentioned in my previous post).

[AMG Power]

Thanks for the clarification on the POA.

Originally Posted by SmartCat

But man, this TDS on dividends is making my head spin.

The TDS will be captured in your Form 26AS automatically. So you don’t need to break your head over it. The dividend paid / interim dividend / final dividend will all be captured in the Form 26AS along with the total payments and TDS. So even if you don’t give your CA any statement he can get the full details of all dividends paid to you.

[WanderinNomad]

Originally Posted by SmartCat

Standard if day trading, margin trading, futures & options trading is allowed in a particular account. If you want to do any of the above, you have to pledge shares or mutual funds as collateral. What this agreement states is that they have to the right to takeover the collateral if you do not honor your commitments.

They have NO right to transfer your shares to themselves (and hence cannot do it either) if you are just a straightforward long term stock investor. The shares and mutual funds will be in your name (as mentioned in my previous post).

I use zerodha for swing and option selling however I would like to have a separate DMAT account for long term portfolio.
The problem is that zerodha does not allow us to divide our portfolio for long term or swing. If you have invested in a large number of stocks and do swing as well as option selling you will automatically sell a stock if it is in good profit.

To solve this problem, I am thinking of keeping my long term portfolio separate.

Thus, I need a separate DMAT account.
Can anyone guide me towards an account with the following features-
1 Zero charges for CNC delivery trades ( or at least minimal charges )
2 GTT good till triggered , GTC good till cancelled or VTC valid till cancelled order type
I find it highly useful for passive investors

Quoting @smartcat since you are experienced in this field.

[SmartCat]

Originally Posted by WanderinNomad

The problem is that zerodha does not allow us to divide our portfolio for long term or swing. If you have invested in a large number of stocks and do swing as well as option selling you will automatically sell a stock if it is in good profit.

Couple of workarounds:

- You need margins for selling options. You can pledge your long term portfolio with zerodha to get margins. The pledged shares will not show up in your 'Holdings'. Now when you buy the same stock for your short term trading bet, it will show up separately under Holdings. When you sell that stock, these shares will exit the 'Holdings'.

- Create a separate watchlist for short term trading bets. Or rather, keep a 'negative list' instead. Do not trade for the short term in those stocks that are there in your long term portfolio.

Thus, I need a separate DMAT account. 2 GTT good till triggered , GTC good till cancelled or VTC valid till cancelled order type

No idea about this.

Can anyone guide me towards an account with the following features- 1 Zero charges for CNC delivery trades ( or at least minimal charges )

Most full service brokerages now have discount broker business too.

ICICIDirect is advertising their zero brokerage account:
https://secure.icicidirect.com/accountopening

Bajaj Finserv has recently started their brokerage business:
https://www.bajajfinserv.in/low-brok...-demat-account

PayTM too:
https://www.paytmmoney.com/stocks/pricing

Sharekhan's discount brokerage brand is called My Expresso:
https://www.myespresso.com/

IIFL's discount brokerage brand is called 5Paisa.com
www.5paisa.com

[shivshanker]

Originally Posted by WanderinNomad

I use zerodha for swing and option selling however I would like to have a separate DMAT account for long term portfolio.
The problem is that zerodha does not allow us to divide our portfolio for long term or swing. If you have invested in a large number of stocks and do swing as well as option selling you will automatically sell a stock if it is in good profit.

To solve this problem, I am thinking of keeping my long term portfolio separate.

Thus, I need a separate DMAT account.
Can anyone guide me towards an account with the following features-
1 Zero charges for CNC delivery trades ( or at least minimal charges )
2 GTT good till triggered , GTC good till cancelled or VTC valid till cancelled order type
I find it highly useful for passive investors

Quoting @smartcat since you are experienced in this field.

I am or rather was in the same boat as you, have some a few changes post the Mar 20 correction or crash.

1. made no sense in holding any Mutual Funds and trade in Equities at the same time, so only a few S&P500 and Motilal Ostwal FoF etc. that too directly, without any broker.

I get my Consolidated Statements through MyCAMS.

2. Opened a Zerodha account in my name for all 3-5 years kind of Investments which are nothing but penny stocks. This I have been funding based on the amount of travel expenses and weekend parties I have missed spending due to COVID.

3. Dividend Stocks, Div re-investment, Bonds GOLD ETF's etc. again in my name, for all >5 year horizon. This is using ICICI Direct

4. Intra Day, F&O and Weekly Trade, in my Wife's name, as there is a tax implication on account of F&O and speculation income, all subscriptions etc. Go under this assessee for tax calculation purposes. Again this is using ICICI Direct.

On both ICICI Direct accounts, I have the max prime plan, the Prime plan contribution was easily justifiable in my case for reducing the Brokerage from 0.55% to 0.15%, money recovered in a month.

for your immediate needs of CNC orders, such as GTC and VTC, these are all standard features within ICICI D, across my two accounts, I did not experience any issues related to such features being restricted.

Main point, had to edit my post, to manage the above mess and for bookkeeping purposes, went in for mProfit app, (local Copy) which helps you in P&L calculation manage your portfolio across all the accounts, updates prices dynamically, import trade reports and myCAMS reports too, for ITAX calculations mProfit helps you with the Grandfathering report too. 5K is the subscription cost per year, but can be claimed as trading and book keeping expense.

Also, there is this additional feature on price improvement orders, their Trade Racer is also good and Fast,

Happy to help with any additional information WRT I - Direct

Cheers!

[WanderinNomad]

Originally Posted by SmartCat

Couple of workarounds:

- You need margins for selling options. You can pledge your long term portfolio with zerodha to get margins. The pledged shares will not show up in your 'Holdings'. Now when you buy the same stock for your short term trading bet, it will show up separately under Holdings. When you sell that stock, these shares will exit the 'Holdings'.

Wow, that's a great idea. This never occurred to me.
Let me try this out.

[Varunmohan]

- Originally posted by SmartCat

You need margins for selling options. You can pledge your long term portfolio with zerodha to get margins. The pledged shares will not show up in your 'Holdings'. Now when you buy the same stock for your short term trading bet, it will show up separately under Holdings. When you sell that stock, these shares will exit the 'Holdings'.

But just in case if the investment goes south and you loose a percentage of your margin (or whole), it may create a danger for your pledged shares if you are not able to fulfil the gap. Isn't it?

[SmartCat]

Originally Posted by Varunmohan

But just in case if the investment goes south and you loose a percentage of your margin (or whole), it may create a danger for your pledged shares if you are not able to fulfil the gap. Isn't it?

Zerodha asks you to keep 50% of the margin needed in debt mutual funds. The other 50% can be kept in stocks or equity mutual funds. This ensures that F&O positions are not threatened by a big fall.

It's best to use abundant caution while trading in F&O segment, and utilize only a small percentage of available margins - up to 50% if positions are hedged (Eg: options spreads, pair trades etc) , and up to 30% if one is trading in naked futures or options positions.

[VKumar]

Originally Posted by SmartCat

can be kept in stocks or equity mutual funds

Dear Smartcat, I am a 100% stocks guy with no MF and all. Mainly I believe that if I have to lose my money, I will lose from my own hands

That said, I need your take on this piece of news. I am on sitting on the funds and have itch too. Just need someone who can say "ja beta, jee le apni jindagi (Go dear child, live your life)":

[SmartCat]

Originally Posted by VKumar

That said, I need your take on this piece of news. I am on sitting on the funds and have itch too. Just need someone who can say "ja beta, jee le apni jindagi (Go dear child, live your life)":

Investing based on news is not my cup of tea. Actually, I don't invest in a stock if I believe its future will be rosy. I just look at a stock's past financial history and current valuations. But after I invest in a stock, I track news related to that company.

Dear Smartcat, I am a 100% stocks guy with no MF and all. Mainly I believe that if I have to lose my money, I will lose from my own hands

Noble thought!

[Turbohead]

Originally Posted by SmartCat

Actually, I don't invest in a stock if I believe its future will be rosy. I just look at a stock's past financial history and current valuations. But after I invest in a stock, I track news related to that company.

Hi Smartcat!
Why do you say that you won't invest in a stock which has a rosy future? ? Can you elaborate? If you have already answered it elsewhere, a link to that will suffice!
Thanks!