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    about trading 1

    You should ask your trading member to give you the unique order number that the system has assigned to your order.

    *Further, as soon as your order is executed, a trade confirmation slip is generated which displays the trade number, trade time, quantity and price at which your trade took place and the corresponding order number. Trading members are obligated to give their clients a trade confirmation slip the moment a trade takes place. By looking at the trade slip, you can actually verify the rate at which your order was traded.

    *At the end of the day, the trading member should give you a contract note.



    How do I ensure that the trading member does not give me trade prices pertaining to some other client or trade prices for deals executed in his personal account?

    You can verify this by checking that the price given to you pertains to the unique order number provided to you by the trading member. The Exchange maintains details of the order/trade number and other details pertaining to the transaction for eight years, and the investor can countercheck these details with the Exchange.

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    The NSE trading system matches orders in such a way that the order gets executed at a price which is either equal to or better than the specified price but never worse than it. Therefore, if you have given an order for selling 100 shares at Rs 50, your order will be traded in the system in such a way that you will get a sale price of Rs 50 or more but never less.

    Similarly, if you have given an order for buying 100 shares at the rate of Rs 50, your order will be traded in the system that you will get a buy price of Rs 50, or less, but never more.



    How do I ascertain the correct rate at which my deal has been executed?

    The NSE trading system (NEAT) generates and maintains an audit trail of the orders entered on the system by assigning a unique order number to all the orders placed on the NEAT system.

    *


    What are the documents I should receive from the NSE trading member/registered sub-broker pertaining to my trade, and when should I get them?

    *Order confirmation slip, after the order has been placed.

    *Trade confirmation slip, after the trade has been executed.

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    How should I give my purchase/sale instructions to the trading member/sub-broker?

    A trading member/client relationship is one of trust. However, it is very important that all your order instructions are given in writing and are duly acknowledged by the trading member. The order instructions should clearly indicate the scrip name, whether order is for buy or sell, the quantity for each of the scrips, rate specifications, if any, and other relevant instructions. This reduces chances of miscommunication between you and your trading member/sub-broker at the time he places deals on your behalf.



    What is price-time priority?

    The system arranges all orders in the order of price and, within price, by time. You have, say, placed a buy order for 100 shares of company A at Rs 285 and another investor has placed a buy order at Rs 290; anyone who then places a sell order in company A will be first matched with the buy order of second investor, as he has given a better price. This is price priority.

    Let us say both of you have quoted Rs 285 as the price at which you want to buy shares of company A, then the sell order which comes into the system at this price will be matched against the order that was placed first.



    How do I know my trading member has given me the best price?



    *Contract note, where the deal is routed through NSE trading member, within 24 hours of the trade being executed

    *Purchase/sale note, where the deal is routed through a registered sub-broker of an NSE trading member, within 24 hours of the trade being executed

    *You should always insist on getting your contract notes or purchase/sale note from your trading member or sub-broker respectively.

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    What are the formalities for registering as a client of a NSE trading member/SEBI registered sub-broker?

    All investors should register themselves with registered trading members/sub-brokers by:

    *Filling a Client Registration Form, and

    *Signing a Member-Constituent Agreement (copy available with all NSE trading members)

    The Member-Constituent Agreement contains the terms and conditions, including order/trade confirmation, brokerage charged by a trading member, delivery of securities and funds and, therefore, helps reduce the chances of disputes in respect of the same. This agreement is mandatory for all persons registering as new clients.



    What precautions should I take before signing the Member-Constituent Agreement?

    *You should read the various terms and conditions carefully and understand their implications before entering into this agreement with your trading member.

    *Check whether it is on a Stamp Paper of requisite value and whether the Stamp Paper is valid (for instance, validity in Maharashtra is for six months from the date of issue of stamp paper). Ensure that the date of agreement is not prior to the date mentioned on the stamp paper.

    *Check whether your name and the name of the trading member are clearly mentioned in the agreement.

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    Everything you want to know about trading...




    TRADING in the stock market is much more easy than it was, say, five or ten years ago.

    But even today, in an environment when many safeguards have been built in, investors have to follow certain aspects closely to ensure there is no problem at the end of a buy/sell transactions. In this context, the edited extracts from FAQ on trading published by the National Stock Exchange of India may be of use.



    How do I verify whether the entity is a NSE trading member (TM)/SEBI registered sub-broker?

    You may ask the person to furnish documents such as SEBI registration certificate, registration with NSE, etc., to verify his antecedents. You can also approach the Exchange to countercheck whether the person holds a valid registration.





    *Ensure that yourself and the trading member have signed on all the pages of the agreement. Also, check that the witnesses have signed and put their names against their signature.

    *Check whether the trading member or their representatives have the authority (such as Board Resolution, Power of Attorney, etc.) to sign the Member-Constituent Agreement.

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    What if the details contained in the contract/purchase/sale notes are incorrect, or the notes include some transactions not pertaining to my orders/trades?

    You should countercheck the details contained in the contract/purchase/sale notes with those on the order and trade confirmation slip. Check whether the order number, trade number and other details on the trade confirmation slip match with those on the contract/purchase/sale notes.

    In case of any discrepancy, you should bring the same to the notice of the trading member/sub-broker immediately by way of written communication duly acknowledged by the trading member/sub-broker, clearly mentioning the deals (in dispute) which do not pertain to you.



    (Source: www.nse-india.com)

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    testing to get right to PM

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