• Equity & Derivatives
  • Commodities
  • Mutualfund
  • Depository

What is an Investment ?

Money is a need in today's environment and everybody has a varied income level. Whatever is earned is partly spent and partly saved for meeting future expenses. Instead of keeping the savings idle an individual uses the savings in order to get return on it in the future and mitigate inflation to some extent. This is called Investment

What is Equity ?

Equities are pieces of a company, also known as "stocks or shares". When you buy shares of a company, you're basically purchasing an ownership interest in that company. A company's stockholders or shareholders all have equity in the company, or own a fractional portion of the whole company. They buy the shares because they expect to profit when the company profits. Companies issue two basic types of shares: equity and preference shares.

What is Equity Share ?

Shares define the portion of investment an investor has made in a particular company at a given price. The total equity capital of a company is divided into equal units of small denominations, each called a share. The holders of such shares are members of the company and have voting rights

Equity share ownership in a public company offers many benefits to investors. The following are some of its main advantages

  • Capital appreciation
  • Dividends
  • Voting privileges
  • Marketability - shares can easily be bought or sold
  • Dividend tax credit and capital gains tax
  • There are also a few drawbacks to owning equity shares. Although part owner of the business, common shareholders are in a relatively weak position, as senior creditors, bond holders and preferred shareholders all have prior claims on the earnings and assets of a company. While interest payments are guaranteed to bond holders, dividends are payable to shareholders at the discretion of the directors of a company.

What is a Derivative ?

An Index is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards The leading Indices in the Indian markets are based on BSE( e.g. BSE SENSEX) and NSE Exchanges(e.g. NSE NIFTY) . These indices are a reflection of the overall price movement in the market.

What is a Depository ?

A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds, government securities, units etc.) in electronic form. In India currently there are two depositories namely National Securities Depository Limited (NSDL) & Central Depository services Limited (CDSL) whose services are availed of by many members who are called Depository Participants.

What is Dematirialisation ?

Prior to the concept of electronic exchanges shares were issued to investors in physical form. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investors account with his Depository Participant (DP).

What is the function of Securities Market ?

Securities Markets, in India they are majorly Stock Exchanges namely NSE National Stock Exchange and BSE Bombay Stock Exchange, is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. These exchanges also perform an important role of enabling corporates, entrepreneurs to raise resources for their companies and business ventures through public issues. It efficiently facilitates transfer of resources from investors to others who have a need for those (corporates). It links savings to investments by a variety of intermediaries, through a range of financial products, called Securities.

Why do Securities Market need regulators ?

Due to the changing economy and ratio between supply and demand resulting in the absence of conditions of perfect competition in the securities market, the role of the Regulator is extremely important. The regulator ensures that the market participants behave in a desired manner so that securities market continues to be a major source of liquidity for corporate and government and the interest of investors are protected.

Who Regulates the Security Market?

It is a shared responsibility jointly taken by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).

What is the role of SEBI ?

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. It provides SEBI with statutory powers for protecting the interests of investors in securities, promoting the development of the securities market and regulating the securities market. Its regulatory jurisdiction extends over organisations in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market. It has been obligated to perform the aforesaid functions by such measures as it thinks fit. To be specific, it has powers as below : To regulate the business in stock exchanges and any other securities markets To Register and regulate the working of stock brokers, sub brokers etc Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices Taking information by undertaking inspection, conducting inquiries and audits of the stock exchanges, intermediaries, self regulatory organizations, mutual funds and other persons associated with the securities market.

Who are the participants in Stock Exchanges ?

The Stock Exchanges essentially has three categories of participants, which are, the issuers of securities, investors in securities and the intermediaries which bring in the issuers and the investors together, such as merchant bankers, brokers etc.

Is it necessary to transact through an Intermediary ?

It is advisable to conduct transactions through an intermediary as you need a trading member of a stock exchange if you intend to buy or sell any security on stock exchanges, maintain an account with a depository if you intend to hold securities in demat form, need to deposit money with a banker to an issue if you are subscribing to public issues. One also gets guidance while transacting through an intermediary. We should choose a SEBI registered intermediary, as he is accountable for its activities.

What are the major Segments of Stock Exchange ?

The Stock Exchanges has two interdependent segments: the primary (new issues) market and the secondary market. The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued.

What is meant by Face value of a Share ?

The nominal or stated amount in (Rs .) assigned to a security by the issuer. For shares, it is the original cost of the stock shown on the certificate. For an equity share, the face value is usually a very small amount (Rs . 5, Rs . 10) and is a small contributor on the price of the share, which may quote higher in the market, at (Rs .) 100 or (Rs .) 1000 or any other price.

What is an IPO?

An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuers securities. The sale of securities is generally through book building or through normal public issue.

What is meant by Secondary market ?

It refers to a market where securities are traded after they have initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market.

What is the role of stock exchange in buying and selling of shares ?

Under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), the stock exchanges in India provide a trading platform, where buyers and sellers can meet to transact in securities. The trading platform provided by BSE & NSE is an electronic one and there is no need for buyers and sellers to meet at a physical location to trade. The trade is done through the computerized trading screens or internet based trading facilities available and provided by the trading members.

What is Dividend ?

Periodic payments to shareholders made out of the company's profits are termed as dividends. The company decides the amount in a board meeting based on the company's performance and surplus.

What are advantages of Depository Services?

By trading in demat segment the risk of bad deliveries is completely eliminated. One can also save on 0.5% in stamp duty in case of transfer of electronic shares. It also avoids the cost of courier; follow up with broker and loss of share certificates in transit. One can also take a loan against shares held in demat form by pledging the same with various lending institutions if required.

What is the process of opening a Demataccount ?

Opening a demat account is as simple as opening a bank account. One can open a depository account with any DP by filling up the account opening form, which is available with the DP. Sign the DP-client agreement that defines the rights and duties of the DP and the person wishing to open the account. Receive your client account number (client ID). This client id along with your DP id gives you a unique identification in the depository system.

What is the procedure to dematerialize your share certificate ?

One needs to fill up a dematerialization request form, which is available with your DP. The holder has to submit the share certificates along with the form; (write "surrendered for demat" on the face of the certificate before submitting it for demat). The credit of such shares is received in general in about 21 days from the registrar.

What makes investment different from Saving ?

Saving is a stage on the way to investing. You cannot be an investor without being a saver but you can be a saver without being an investor. Savings are effectively cash or cash instruments, such as deposit account, term bonds etc. Investing is what you do with the savings you have created if you are looking to generate a return on your money that is greater than what is already available to you through your savings instruments

What is safest investment ?

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. It provides SEBI with statutory powers for protecting the interests of investors in securities, promoting the development of the securities market and regulating the securities market. Its regulatory jurisdiction extends over organisations in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market. It has been obligated to perform the aforesaid functions by such measures as it thinks fit. To be specific, it has powers as below : To regulate the business in stock exchanges and any other securities markets To Register and regulate the working of stock brokers, sub brokers etc Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices Taking information by undertaking inspection, conducting inquiries and audits of the stock exchanges, intermediaries, self regulatory organizations, mutual funds and other persons associated with the securities market.

Should everyone Consider Stock Market /Direct Equity Options ?

The answer to this question is a definite yes. It has been seen that over the years there has been no financial instrument which has given returns as high as the stock markets. The only important factor to be kept in mind is that investment should always be made with an objective in mind and we should not be too greedy while investing. On the other hand, as inflation has fallen over the last couple of decades so have the returns available from basic savings accounts. In fact, many instant access accounts no longer keep pace with inflation at all. Leaving your money in such an account now actually means it is falling in value!

What is a commodity?

A commodity is a product having commercial value that can be produced, bought, sold, and consumed. It is normally a basic raw unprocessed state but products derived from primary sector and structured products are also traded at commodity exchanges. In India, the list includes precious metals, ferrous and non-ferrous metals, spices, pulses, plantation crops, sugar, and other soft commodities.

What is a commodity market ?

Commodity market is a place where trading in commodities takes place. It is similar to an Equity market, but instead of buying or selling shares one buys or sells commodities

What are the different types of participants in commodity markets?

Broadly, the participants can be classified as hedgers, arbitragers, and speculators. In other words, manufacturers, traders, farmers, exporters, and investors are all participating in this market.

What are the different types of Commodities that are traded in these Markets ?

World-over one will find that a market exits for almost all the commodities known to us. These commodities can be broadly classified into the following: Precious Metals: Gold, Silver, Platinum etc. Other Metals: Nickel, Aluminum, Copper etc. Agro-Based Commodities: Wheat, Corn, Cotton, Oils, Oilseeds, etc. Soft Commodities: Coffee, Cocoa, Sugar etc. Energy: Crude Oil, Natural Gas, Gasoline etc.

How is trading done in the commodity exchanges?

Commodity exchanges are based on the online trading system. It is an order-driven, transparent trading platform, which is reachable to the various participants through the internet, VSAT, and leased line modes operated by members or subbrokers spread across the country.

What is a derivative contract?

A derivative is a product whose value is derived from the value of one or more underlying variable or asset in a contractual manner. The underlying asset can be equity, foreign exchange, commodity or any other asset. The price of derivative is driven by the spot price.

How are futures prices determined?

Futures prices evolve from the interaction of bids and offers emanating from all over the country which converge on the trading floor. The bid and offer prices are based on the expectations of prices on the maturity date.

Is delivery mandatory in commodity futures contract trading?

The provision for delivery is made in the Byelaws of the Associations so as to ensure that the futures prices in commodities are in conformity with the underlying. Delivery is generally at the option of the sellers. However, provisions vary from Exchange to Exchange. Byelaws of some Associations give both the buyer and seller the right to demand/give delivery.

How is it possible to sell, when one doesn’t own commodity?

One doesn’t need to have the physical commodity or own a contract for the commodity to enter into a sale contract in futures market. It is simply agreeing to sell the physical commodity at a later date or selling short. It is possible to repurchase the contract before the maturity, thereby dispensing with delivery of goods.

What is long/short position?

Long position is a net bought position, whereas a short position is net sold position.

What is a mutual fund?

A mutual fund is a financial instrument that collects money from several investors like you, and invests it in various investment options like shares, bonds, etc. This fund is managed by experts.

What are the types of mutual funds?

Depending on where your money is invested, mutual funds can be classified into three types: Equity, Debt and Hybrid. Equity mutual funds invest in shares of companies listed on the stock exchange. Debt mutual funds invest in bonds of reputed companies and government bonds. Hybrid mutual funds invest in both, shares and bonds.

How does a mutual fund operate?

A mutual fund company collects money from many investors, and invests it in various options like shares, bonds, etc. This fund is managed by professionals who understand the market well, and try to achieve growth by making strategic investments. Investors get units of the mutual fund according to the amount they have invested.

What are the benefits of investing in a mutual fund?

Some of the major benefits on investing in a mutual fund are:

  • Diversification
  • Professional management
  • Convenience
  • Liquidity
  • Variety of schemes and types
  • Tax benefits

What are the consequences of being NON Compliant?

Suspension of AMFI Certificate. In case Self Declaration not submitted to AMC before the end of the financial year, or within 3 months from the start of next financial year then his brokerage will be suspended thereafter till submission.

What is NFO?

NFO stands for a New Fund Offer. When a new fund is launched for investors, it is known as a NFO. A NFO could also be the launch of additional units of a close-ended fund.

What is a Fund of Funds?

A fund of fund is a kind of mutual fund that invests in a variety of mutual funds.

What are equity mutual funds?

Equity mutual funds collect money from several investors like you, and invest this amount in shares of various companies. The primary objective of equity mutual funds is to invest in shares of different companies and generate good returns.0

What are debt mutual funds?

Debt mutual funds collect money from several investors like you, and invest this amount in bonds of reputed companies and government bonds.

What are hybrid mutual funds?

Hybrid mutual funds invest both in shares and bonds. The portion invested in shares helps grow your wealth, while the portion invested in bonds offers stability to your portfolio.

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a convenient method of investing in mutual funds. Under this plan, an investor contributes a fixed amount towards the mutual fund scheme at regular intervals, and gets units at the prevailing NAV.

What are the benefits of investing in a SIP?

Investing in SIP offers two major benefits:

  • You can start investing with a small amount
  • You can average out your investment, as SIP involves buying units at different points of time and at different NAV levels

What is a Systematic Withdrawal Plan (SWP)?

Under a Systematic Withdrawal Plan (SWP), an investor redeems a fixed number of mutual fund units at regular intervals.

What are Exchange Traded Funds?

Exchange Traded Funds (ETFs) are funds that can be traded on a stock exchange, just like shares. These funds invest in shares, indexes or commodities.

What are index funds?

Index funds are mutual funds that invest in shares of companies comprising a particular index. These funds intend to replicate the performance of a particular index.

What is rupee cost averaging?

Rupee cost averaging is one method to save regularly and minimise the effect of market volatility on investments. By investing through methods like SIP, you invest a fixed amount in mutual funds at regular intervals. So, you get more units when the NAV is low and fewer units when it is high. Eventually, your average cost per unit is brought down.

What is NAV?

NAV stands for Net Asset Value of a mutual fund. This is basically the price of one unit of a mutual fund.

How is NAV calculated?

NAV can be calculated as follows: Assets of the fund – Liabilities of the fund / Number of outstanding units for that fund

How often is the NAV of a fund declared?

Mutual fund companies have to declare the NAV of their funds at least once a week. However, most companies declare it at the end of every working day.

What are gilt funds?

A gilt fund is a kind of mutual fund that invest your money only in government securities. These funds are considered to be safe as they bear no default risk.

What are sectoral mutual funds?

Sectoral mutual funds invest your money in shares of companies of one particular sector. The main objective of these funds is to provide high returns from one particular sector that has the potential to grow.

What are liquid funds?

Liquid funds are mutual funds that offer high liquidity. This means, the units of these funds can be sold immediately, and the invested amount can be redeemed quickly.

What are capital protection funds?

Capital protection funds are mutual funds designed to protect your capital. These funds put a major portion of the investment in bonds, and a small portion in shares. Over time, the portion invested in bonds grows to the size of your original investment. So even if the portion invested in shares does not do well, your capital is still protected.

What is an open-ended mutual fund?

Open-ended funds can be bought and sold at any time; they have no fixed tenure.

What is a close-ended mutual fund?

You can buy units of close-ended mutual funds only when a mutual fund company launches the fund. Once you buy them, you have to hold your investment for a fixed tenure.

What is redemption price?

Redemption price is the price that you receive on selling each unit of your mutual fund investment.

Where can I get more information on mutual funds?

Most mutual fund companies have their website, where information related to all the mutual fund schemes is available. You can also log on to the official website of the Association of Mutual Funds in India (AMFI): www.amfiindia.com. To view information related to regulations and guidelines for mutual funds, addresses of mutual funds, etc. one can log on to www.sebi.gov.in and click on the 'Mutual Funds' section.

How do I subscribe and redeem units of a mutual fund scheme on stock exchanges?

In order to extend the convenience that investors in the secondary market have, to investors in Mutual Funds, SEBI has allowed Stock Exchanges to offer their existing infrastructure for subscribing and redeeming units of a mutual fund scheme.

In accordance with the same, National Stock Exchange of India Ltd. offers Mutual Fund Service System (MFSS) and Bombay Stock Exchange Ltd. offers BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds (BSE StAR MF) [collectively called as Stock Exchange Platform(s) for Mutual Funds] for transacting in certain schemes of Birla Sun Life Mutual Fund.

For further details on trading through Stock Exchange Platform(s), you may refer to the following websites:



All transactions carried out through the Stock Exchange Platform for Mutual Funds shall be subject to such guidelines as may be issued by NSE, BSE and also SEBI (Mutual Funds) Regulations, 1996 and circulars / guidelines issued thereunder from time to time, in this regard.

Can NRIs invest in Mutual Funds? Do they require any special permission from the RBI?

Non Resident Indians and Persons of Indian Origin residing abroad (NRIs) / Foreign Institutional Investors (FIIs) have been granted a general permission by Reserve Bank of India Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations

What is Depository ?

A depository is an organization where the securities of an investor are held in electronic form. A depository can be compared to a bank. To avail of the services of a depository, an investor has to open an account with the Depository through a depository participant, just as he opens an account with the bank. Holding shares in the account is akin to holding money in the bank.

Why should I prefer to buy shares in the depository mode? Why should I have a demat account?

As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy: No bad deliveries. No risk of loss, mutilation or theft of share certificates No stamp duty for transfer of shares. Reduced paper work. Fast settlement cycles. Low interest rates on loans granted against pledge of dematerialized securities by banks. Low margin on securities pledged with banks. Increase in liquidity of your securities because of faster transfer and registration of securities in your account. Instant disbursement of non-cash benefits like bonus and rights into your account. Regular account status updates available from MODES at any point of time.

At present, India has only two depositories: National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL). NSDL is the first depository to have started in India, whereas CDSL followed them. However, most of the services offered by both these depositories are similar. Today almost all the companies listed in dematerialized form with NSDL are available with CDSL.

Who is a Depository Participant?

A Depository Participant(DP) is an agent appointed by the Depository and is authorized to offer depository services to all investors. An investor cannot directly open a demat account with the depository. An investor has to open his account through a DP only. The DP in turn opens the account with the Depository. The DP in turn takes up the responsibility of maintaining the account and updating them as per the instructions given by the investor from time to time. The DP generates and provides the holdings statement from time to time as required by the investor. Thus, the DP is basically the interface between the investor and the Depository. Example: BVC Modes is a DP of both Depositories (NSDL as well as CDSL). For the purpose of Internet Trading, you will have to open a demat account with BVC, who is authorized to offer you this service. We will be opening your demat account with CDSL. The balances in your account are maintained with the depository and are available to you through us. You can find the status of your holdings or transactions from time to time.

Who is a Beneficiary Owner(BO)?

The person who holds a demat account is a beneficiary owner. In case of a joint account, the account holders will be beneficiary holders of that joint account.

What is a BO Id?

The demat account number of the beneficiary holder(s) is known as the BO Id.

What is a DP Id?

A DP Id is the number of the depository participant allotted by the depository.



  • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 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.
  • Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 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.
  • Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
    Issued in the interest of investors.

JRK STOCK BROKING PRIVATE LIMITED  NSE : INB/INF/INE 231293235, BSE : INB/INF 011293231, SEBI Single Certificate No. INZ000194836
CDSL : IN-DP-158-2015
Sebi Regn No- IN-DP-158-2015
AMFI : ARN-160631

filr g
Copyright © 2015 jrkgroup. All Rights Reserved
Designed, Developed & Content Powered by Accord Fintech Pvt. Ltd.
Tobbaco House,1, Old Court House Corner 3rd Floor, Room No. 301, Kolkata , 700001
Phone: 033-40174777 Phone: 033-22622462 Phone: 033-22622463 Email: customersupport@jrkgroup.in Email: info@jrkgroup.in
close X

Download Client Registration Documents