CLOSE X

Equities

Equity

Equity market or Capital Market isalso known as the stock market, Equity market is one of the main component of the Financial Markets, Equity Trading refers to the Purchasing and selling of securities, such as stocks and bonds of any listed company on a stock Exchange, In equity trading Investors and traders participate in the ownership and potential profit of listed companies.

Equity market manage by two Market segment that is Primary Market and Secondary Market both Market segment serves different functions

Capital Market

  • Primary Market
  • Secondary Market

The Primary Market, also known as the new issue market or Initial Market, in primary Market newly issued securities offer and sold to the public for the first time and this process is known as IPO (initial public offer)

Primary market facilitates the capital-raising process for companies and governments. It allows them to issue and sell securities to the public to generate funds for various purposes

Primary market involves issuers, such as companies or governments, and investors. Companies issue new securities to raise capital for expansion, debt repayment, or other financial needs, Investment banks and underwriters play a crucial role in the primary market. They help companies navigate the IPO process,

Regulations: Equity trading or Stock market trading is subject to regulations to ensure fair and transparent markets. Regulatory body of Indian securities market is Securities and Exchange board of India (SEBI), main role of SEBI is to be over see and enforce rules to protect investors and maintain market integrity.

Stock Exchange: stock exchange is a centralized marketplace where financial instruments, such as share, stocks, bonds, commodities, currency and derivatives, are bought and sold,

The major role of a stock exchange is to provide a platform for companies to raise capital by issuing securities and for investors to buy and sell those securities,

there are several stock exchanges in India, with the two major ones being the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

BSE (Bombay Stock Exchange)

The BSE is one of the oldest stock exchanges in Asia and its established in 1875. BSE located in Mumbai, Maharashtra and that place is known as DALAL STREET.

There are Thousands of companies are listed on the BSE these are covering various sectors sub sectors of the Indian economy.

Sensex is index of Bombay Stock Exchange, full name of SENSEX is Sensitive Index, is one of the key benchmark indices of the Bombay Stock Exchange (BSE) in India. Sensex widely followed and influential indicator of the Indian stock market's overall health and performance.

Sensex include best 30 Blue-chip companies, and the volatility of these 30 stocks decide the volatility of Sensex, The Sensex reflects the combined performance of a select group of stocks representing various sectors of the Indian economy.

NSE ( National Stock Exchange)

NSE was established in 1992 as the need for a modern and technologically advanced stock exchange in India and its located as headquartered in Mumbai.

Like the Bombay Stock Exchange (BSE), NSE (National Stock Exchange) Listed Stocks lists a significant number of companies from various sectors and subsectors.

The Nifty, known as the Nifty 50, Nifty is one of the main indices of the National Stock Exchange of India (NSE). Nifty index is a widely followed and influential indicator of the Indian stock market's overall economic health and performance.

Nifty 50,comprises 50 stocks representing various sectors of the Indian economy. All These stocks are selected based on certain criteria, including their Market Cap and Liquidity

In addition to the Nifty 50, the NSE also has sectorial indices based on their specific industries. Like Nifty Bank, Nifty IT, Nifty Pharma, Nifty Reality, Nifty FMCG, Nifty Infra and many more, which track the performance of stocks in their related sectors.

DP (Depository Participant)

In India, the central securities depository is the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL). These central depositories maintain electronic records of securities.

Depository Participant (DP) is a financial intermediary that manages the holding of securities such as stocks, share, bonds, ETFs in electronic form and enables electronic transactions in the stock market. In current scenario the context of stock market depository participants, this term is often associated with entities that provide depository services for securities traded on stock exchanges.

Depository Participants are entities that act like an intermediary between the central depository and the investors. They also provide depository services to retail, HNIs and institutional investors.

DPs can be any banks, other financial institutions, any brokerage firms, or any other entity authorized by the depository to offer these services to investors.

Key Responsibilities of Depository
  • Demat Account Opening: Investors who want to hold their securities in electronic form is compulsory to open a Demat (Dematerialized) account with a DP. This account is similar to a bank account but holds securities in electronic form.
  • Dematerialization: Once the Demat account is opened, investors can convert their physical share certificates into electronic form through a process called dematerialization. This process eliminates the need for physical certificates and facilitates electronic transfer and trading of securities.
  • Transaction Settlement: Depository Participants facilitate the electronic transfer of securities between the Demat accounts of buyers and sellers. This process is much faster, efficient, transparentand very easy than the traditional system of transferring physical share certificates.
  • Corporate Actions: Depository Participants assist investors in participating in corporate actions such as Dividends, Bonus issues, Rights issues, Stock split, Buyback etc. These actions are credited directly to the Demat accounts of the investors.
BROKERAGE FIRM

Individual investors usually execute equity trades through brokerage firms. These firms act as intermediaries between buyers and sellers, facilitating the trading process. Online brokerage platforms have become increasingly popular, allowing investors to place trades electronically.

Nirman Share Brokers Pvt Ltd is one of the leading stock Broking company is central India having head office in Bhopal Madhya Pradesh,

Nirman Share Brokers Pvt. Ltd. (NIRMAN) is a Stock Broking Company. “NIRMAN” is providing broking services since 1987 under name & style of “NIRMAN INVESTMENTS” & converted in private limited in the financial year 2001 with a view to providing quality services & reasonable price for primary and secondary market access to investors.

“NIRMAN” is a leading financial intermediary, having a diversified customer base, broad range product offerings and State-of- the-Art execution and servicing capabilities and believes that financial inclusion can be achieved in Capital markets through affordable institutionalized, professional set ups that bring transparency and reliability to the table

The Company currently has in its fold a wide segment of clients including Financial Institutions, Corporate, High Net worth Individuals, Non-Resident Indians and Retail domestic investors. Its broking product range covers Institutional and Retail EQUITY, DERIVATIVES, CURRENCY, DP SERVICES, MUTUAL FUNDS, ON-LINE TRADING, FIXED DEPOSITS, BONDS and a wide variety of Third Party Distribution products.

The secondary Market is the final place where previously issued or already listed securities are bought and sold to the investors, in the Secondary market where existing owners can sell their securities to other investors

The secondary market involves investors and traders who can buy and sell securities that are already listed previously, the secondary market all securities are traded between traders,

Secondary Market

Regulations: Equity trading or Stock market trading is subject to regulations to ensure fair and transparent markets. Regulatory body of Indian securities market isSecurities and Exchange board of India (SEBI), main role of SEBI is to be oversee and enforce rules to protect investors and maintain market integrity.

Stock Exchange : stock exchange is a centralized marketplace where financial instruments, such as share, stocks, bonds, commodities, currency and derivatives, are bought and sold,

The major role of a stock exchange is to provide a platform for companies to raise capital by issuing securities and for investors to buy and sell those securities,

there are several stock exchanges in India, with the two major ones being the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

BSE (Bombay Stock Exchange)

The BSE is one of the oldest stock exchanges in Asia and its established in 1875. BSE located in Mumbai, Maharashtra and that place is known as DALAL STREET.

There are Thousands of companies are listed on the BSE these are covering various sectors sub sectors of the Indian economy.

Sensex is index of Bombay Stock Exchange, full name of SENSEX is Sensitive Index, is one of the key benchmark indices of the Bombay Stock Exchange (BSE) in India. Sensex widely followed and influential indicator of the Indian stock market's overall health and performance.

Sensex include best 30 Blue-chip companies, and the volatility of these 30 stocks decide the volatility of Sensex, The Sensex reflects the combined performance of a select group of stocks representing various sectors of the Indian economy.

NSE ( National Stock Exchange)

NSE was established in 1992 as the need for a modern and technologically advanced stock exchange in India and its located as headquartered in Mumbai.

Like the Bombay Stock Exchange (BSE), NSE (National Stock Exchange) Listed Stocks lists a significant number of companies from various sectors and subsectors.

The Nifty, known as the Nifty 50, Nifty is one of the main indices of the National Stock Exchange of India (NSE). Nifty index is a widely followed and influential indicator of the Indian stock market's overall economichealth and performance.

Nifty 50,comprises 50 stocks representing various sectors of the Indian economy. All These stocks are selected based on certain criteria, including their Market Cap and Liquidity

In addition to the Nifty 50, the NSE also has sectorial indices based on their specific industries. Like Nifty Bank, Nifty IT, Nifty Pharma, Nifty Reality, Nifty FMCG, Nifty Infra and many more, which track the performance of stocks in their relatedsectors.

DP (Depository Participant)

In India, the central securities depository is the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL). These central depositories maintain electronic records of securities.

Depository Participant (DP) is a financial intermediary that manages the holding of securities such as stocks, share, bonds, ETFs in electronic form and enables electronic transactions in the stock market. In current scenario the context of stock market depository participants, this term is often associated with entities that provide depository services for securities traded on stock exchanges.

Depository Participants are entities that act like an intermediary between the central depository and the investors. They also provide depository services to retail, HNIs and institutional investors.

DPs can be any banks, other financial institutions, any brokerage firms, or any other entity authorized by the depository to offer these services to investors.

Key Responsibilities of Depository
  • Demat Account Opening: Investors who want to hold their securities in electronic form is compulsory to open a Demat (Dematerialized) account with a DP. This account is similar to a bank account but holds securities in electronic form.
  • Dematerialization: Once the Demat account is opened, investors can convert their physical share certificates into electronic form through a process called dematerialization. This process eliminates the need for physical certificates and facilitates electronic transfer and trading of securities.
  • Transaction Settlement: Depository Participants facilitate the electronic transfer of securities between the Demat accounts of buyers and sellers. This process is much faster, efficient, transparentand very easy than the traditional system of transferring physical share certificates.
  • Corporate Actions: Depository Participants assist investors in participating in corporate actions such as Dividends, Bonus issues, Rights issues, Stock split, Buyback etc. These actions are credited directly to the Demat accounts of the investors.
BROKERAGE FIRM

Individual investors usually execute equity trades through brokerage firms. These firms act as intermediaries between buyers and sellers, facilitating the trading process. Online brokerage platforms have become increasingly popular, allowing investors to place trades electronically.

Nirman Share Brokers Pvt Ltd is one of the leading stock Broking company is central India having head office in Bhopal Madhya Pradesh,

Nirman Share Brokers Pvt. Ltd. (NIRMAN) is a Stock Broking Company. “NIRMAN” is providing broking services since 1987 under name & style of “NIRMAN INVESTMENTS” & converted in private limited in the financial year 2001 with a view to providing quality services & reasonable price for primary and secondary market access to investors.

“NIRMAN” is a leading financial intermediary, having a diversified customer base, broad range product offerings and State-of- the-Art execution and servicing capabilities and believes that financial inclusion can be achieved in Capital markets through affordable institutionalized, professional set ups that bring transparency and reliability to the table

The Company currently has in its fold a wide segment of clients including Financial Institutions, Corporate, High Net worth Individuals, Non-Resident Indians and Retail domestic investors. Its broking product range covers Institutional and Retail EQUITY, DERIVATIVES, CURRENCY, DP SERVICES, MUTUAL FUNDS, ON-LINE TRADING, FIXED DEPOSITS, BONDS and a wide variety of Third Party Distribution products.

Orders and Transactions in Stock Market

In Stock Market investors can place various types of orders to buy or sell stocks. Each order type has its own characteristics and these are used in different trading scenarios.

Type of orders :

Market Order: This order type Facilitate to traders and Investors an order to buy or sell a security or stocks at the best available price in the current market. Market order execute immediately at the prevailing market price. Basically this order type Used when the investors are given priority to execution speed over price.

Limit order:This order type Facilitate to traders and Investors an order to buy or sell a security or stocks at a specific price. Limit order Filled only at the specified price and it may not be immediately executed if the market does not reach at the particular limit price.

Basically this order type Usedwhen investors or traders want to control the price at which the trade is executed.

Stop Loss Order: Stop-loss order is an order placed by trader or investor to buy or sell a specific stock once the stock reaches a certain price(trigger price). A stop-loss is designed to limit an investor's loss on a security positions.

GTT order (Goods Till Trade): This is order that remains active until it is either execute or cancel by investors. GTT order Convenient for investors who want to set and forget an order for an extended period normally GTT orders are valid for 1 year.

Day order: Day order is orderthat is valid only for the current trading day.If not executed by the end of the trading day the order is automatically cancelled.

IOC Order (Immediate or Cancel Order): IOC order must be executed immediately if any portion of order is not filled is cancelled. IOC order useful when the investor wants immediate trade execution but he is also ready to accept partial trade execution.

Type of Trade :

Intraday Trade : Intraday trading is also known as day trading, it refers to a trading strategy in which traders buy and sell financial instruments, such as stocks, within the same trading day.

In other words, intraday trading involves opening and closing of any positions within a single trading session, with no overnight exposure to market volatility. The advantage of intraday trading is to capitalize on short-term price movements and take benefits of intraday price fluctuations.

Holding Or Delivery Trade: Delivery trading, often simply referred to as "delivery," is a trading strategy in the stock market where investors buy and hold financial instruments, such as stocks or securities, with the intention of owning them for an extended period of time.

In delivery trading, investors take actual possession or delivery of the Securities or stocks they purchase, and the ownership is transferred as unit of share to their Demat accounts.

The categorization of Holding or Delivery Trades is further delineated based on two distinct scenarios, considering their holding duration. These two trade scenarios are Short term and Long term trade.

Short-Term Trade :

Short-term trading in the stock market refers to a strategy where traders buy and sell financial instruments, such as stocks or securities, with the intention of profiting from short-term price movements.

Short-term trading involves holding positions up to 12 months or 365 days duration, often ranging from a few days to several weeks or months. Traders often use short-term trading to focus on taking advantage of market volatility and exploiting price fluctuations within a shorter time frame.

Short-term trading typically involves a shorter time horizon compared to long-term investing. Traders aim to capitalize on price changes over a shorter time period, reacting to market trends.

Short-term trading refers to those trading strategies in stock market or futures market in which the time duration between entry and exit is within a range of few days to few weeks and months but not more than 12 months or 365 days.

Long-term Trade :

Long-term trading in the stock market refers to an investment strategy where investors buy and hold financial instruments, such as stocks or securities, for an extended period of time. long-term trading is characterized by a patient approach, with the intention of holding investments for years,

aiming to hold their investments for an extended period, often with the goal to take benefit from market volatility and exploiting price fluctuations over longer time.Long-term timing for stock market is fixed for more than 12 month or 1 year.

get in touchCall : 0755-4311111
REGISTERED OFFICE

Nirman Share Brokers Pvt. Ltd.
“NIRMAN HOUSE” 8, Zone - 1, M. P. Nagar, Bhopal - 462011.
CIN NO.- U67120MP2001PTC14523
GST NO. - 23AABCN3007C1ZB

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

KYC

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.

IPO

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

ATTENTION INVESTORS

1.Stock broker/Depository participant can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2.Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

3.Pay 20% upfront margin of the transaction value to trade in cash market segment.

4.Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.

5.Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

6.All the clients are requested not to blindly follow these unfounded rumours, tips etc. and invest after conducting appropriate analysis of respective companies. Prevent Unauthorised transactions in your account. Update your mobile numbers/email IDs with your stock broker/Depository participant. Receive information of your transactions directly from Exchange/Depository on your mobile/email at the end of the day

.......... Issued in the interest of Investors

Nirman Share Brokers Pvt. Ltd. : SEBI Registration No.INZ000197638-BSE Cash/F&O/CD (Member ID:956),
MCX (Member ID 45395)
NSE Cash/F&O/CD (Member ID:12309)
CDSL (DP ID 12059500): IN-DP-CDSL-494-2008

COMPLIANCE OFFICER: Mr.Tushar Suryavanshi
E-mail : tushar.s@nirmanbroking.com
Tel : 0755-4311111

© 2020 Nirman Share Brokers Pvt. Ltd. All Rights Reserved
Designed & Developed by Accord Fintech Pvt. Ltd.