DEMAT

  ACCOUNT OPENING

  ACCOUNT MAINTENACE

  PASSWORD

  FUND TRANSFER

  TRADING

  MUTUAL FUNDS

  IPO

DEMAT

1. What is the procedure for dematerialising the physical share certificates?
   Ans: You need to open a demat account in the name(s) in which the share certificates are and submit the share certificates along with the duly completed Demat Request Form (DRF) either by courier or by hand delivery at the nearest DP branch. You can also transpose-cum-Demat the shares.
   
   
2. What is transposition cum demat and what is the procedure?
   Ans: Transposition cum demat enables the customer to transpose (swap/interchange) names of the joint holders in desired order along with the process of dematerialization of certificates. For e.g. If A & B hold a Demat account and if the certificates are in the names of B & A the shares can be dematerialised in the demat account of A & B. The customer should submit duly completed transposition form along with the Demat Request Form (DRF) and the share certificates. No new name can be added through transposition process.
   
   
3. How long will the dematerialization process take?
   Ans:The dematerialization process takes about 30 days.
   
   
4. What is the process for dematerialising physical shares of a joint account in case of death of one account holder?
   Ans: In this case, such shares could be dematerialised in the demat account of the surviving member(s) provided that the surviving member(s) submits a Transmission cum Dematerialization form duly signed by all the surviving holders and a notarized/certified true copy (by nationalized bank) of the Death certificate along with DRF. Download the required form in two formats ( Word & PDF )
   
   
5. How can I demat shares with Pre Marital/Maiden names?
   Ans: To demat such shares you need to submit a certified true copy of the marriage certificate along with the DRF.
   
   
6. Can I as a sole holder of the share certificates add one more name as a joint holder at the time of dematerialising share certificates?
   Ans: No. However, this can be done by opening an account as the sole holder (account A) and dematerialize the share certificate. Then you need to open another depository account (account B) in which you are the first holder and the other person is the second holder. and make an off market transfer of the shares from the account A to account B. You will have to incur a charge on this transaction.
   
   
7. Which statements would I be receiving?
   Ans: Usually, the Transaction statement and the Holding statement are sent by courier on a quarterly basis. If there is a transaction in the demat account you will receive a statement on a monthly basis. And if there is no transaction or there are no holdings in the demat account you will not receive any statement. Other than this, the requested statements will be charged Rs. 20/- per demat account.
   
   
8. How can I check for my demat holdings online on IDBIpaisabuilder.in?
   Ans: After you log-in to your Trading account, select the ‘Demat Allocation’ option under the ‘Trading Site’ option and click on the Go button to view your demat holdings.
   
   
9. What is the procedure to transfer the shares from one demat account to other?
   Ans: To transfer the shares from one demat account to another, you have to use the Delivery Instruction Slip (DIS)/Transfer Instruction For Delivery (TIFD) Slip as provided by the DP with whom the source demat account is, mention the details of the demat account where you wish to move the shares and specify the shares you wish to transfer. This DIS/TIFD Slip is required to be submitted to the nearest branch of the DP with whom you are holding your demat account.
   
   

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ACCOUNT OPENING

1. What are the requirements for opening an individual online trading account with IDBIpaisabuilder?
   Ans: IDBIpaisabuilder online trading account is a 3-in-1 account, where Trading account, Demat account and Bank Savings account are linked together. Requirements are as follows:
   
   • You should open an internet enabled savings account with IDBI Bank/HDFC Bank/UTI Bank/Punjab National Bank/Bank of Rajasthan, if you currently do not have one. You will need to submit a cheque leaf of the account for our records.
   • Account opening form to be duly completed in all respects and submitted.
   • Two photographs of the trading account holder and one photograph of each of the demat account holder signed across. One photograph of the nominee will also be required.
   • The trading account holder should be the primary holder of the demat account and the savings account.
   • The correspondence address, which you mention in the account opening form, should match with the given address proof.
   • PAN Card is mandatory for all the holders of the demat account.
   • Proof of Identity: Voter Id/Passport/PAN card/Mapin UID card/Driving License/Photo Credit or Debit Card.
   • Proof of Correspondence Address: Voters Id/Driving License/Valid Passport/Ration Card/Bank Statement or Electricity bill or Telephone bill (not preceding 2 months)/Rent Agreement.
   • Tariff sheet duly signed by all the account holders.
2. What type of a bank account can I use with my trading account?
   Ans: You can have an ordinary savings/current account with IDBI Bank/HDFC Bank/UTI Bank/Punjab National Bank/Bank of Rajasthan for your trading account. You can specify the account in the form and the same shall be linked with your trading account. In case you don’t have a savings account with any of these banks we can help open a new IDBI Bank savings account with the trading account for you.
   
   
3. Do I require Net Banking facility?
   Ans: Yes, for transferring funds online from your savings account to our trading account, you require the Net Banking facility. The system shall verify your Net Banking user Id and password before transferring funds to our trading account. In case you do not have a Net Banking facility, you need to apply for the same at your local bank branch.
   
   
4. How do I get a confirmation for my application?
   Ans: Post acceptance, we shall dispatch a “Welcome Kit” on your communication address, which would include your Demat and Trading Account number.
   
   
5. When can I expect my Welcome Kit after the Trading account is opened?
   Ans: You will receive your Welcome Kit within 7 working days from the date your account has been activated.
   
   
6. What does MICR stand for and why is a cheque leaf compulsory for opening the online trading account?
   Ans: MICR stands for Magnetic Ink Character Recognition. It normally appears on the cheque leaf of the savings account. We take the cheque leaf as a proof for savings account number and to know the branch in which you have a savings account for crediting the dividend.
   
   
7. How frequently will I be able to know the status of my accounts?
   Ans: The status of your Bank, Demat and trading account shall be available to you online 24 hours a day through the Internet. You will be able to access all details regarding your orders and trades on the website and view the results of your trade reflected in your Bank account and Demat account on the very day of the settlement, without waiting for the statements from the DP and the Bank.
   
   

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ACCOUNT MAINTENANCE

1. What is the procedure for change of address in trading account and demat account?
   Ans:Click Service Requests link under Customer Care section. Click on the ‘Change of Address Form’ link, which allows you to download the required form in two formats ( Word & PDF ). Take a print out of the same and fill in the details. Submit this request along with a valid Address proof of the new address and the photo identity proof, at the nearest IDBIpaisabuilder branch (Click here to view our branches) or send it directly to our Mumbai office at IDBI Capital Market Services Limited, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021.The address will be updated within 7 working days. In case you do not have your DP account with IDBI Capital and wish to get an address change request registered for your demat account, you will need to inform and do the needful directly with your DP with whom you are maintaining your demat account.


2. How do I vertify if my new address has been updated?
   Ans:You will be able to view it in the ‘My Profile’ option under ‘Services’ on the top menu bar. Once the address has been updated a confirmation letter will be posted at your new communication address. In case of any discrepancy in the address please send an email to our CustCare desk at custcare@idbipaisaduilder.in.



3. What is the procedure for changing the bank account details for trading and demat accounts?
   Ans: Click Service Requests link under Customer Care section. Click on ‘Change of Bank Details Form’ link, which allows you to download the required form in two formats ( Word & PDF ). Take a print out of the same and fill in the details. Submit the request along with the Cheque leaf of new savings bank account at the nearest IDBIpaisabuilder branch or can send it directly to our Mumbai office at IDBI Capital Market Services Limited, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021.The Bank details will be updated within 7 working days. In case you do not have your DP account with IDBI Capital and wish to get your bank account details change request registered for your demat account, you will need to inform and do the needful directly with your depository with whom you are maintaining your demat account.



4. What is the procedure for change of nomination?
   Ans: Click Service Requests link under Customer Care section. Click Change of Nomination Form link, which allows downloading the required form in two formats ( Word & PDF ) . Take a print out of the same & fill in the details. Submit the request at the nearest IDBI Capital branch or can send it directly to our Mumbai office at IDBI Capital Market Services Limited, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021.In case you do not have your DP account with IDBI Capital and wish to get your nomination details change request registered for your demat account, you will need to inform and do the needful directly with your depository with whom you are maintaining your demat account. Please note that there is no nomination for the trading account.



5. 5. What is the procedure to place the Transmission request for demat account?
   Ans: Click Service Requests link under Customer Care section. Click on ‘Change of Transmission Form’ link, which allows you to download the required form in two formats ( Word & PDF ). Take a print out of the same and fill in the details. Submit the request along with copy of the Death Certificate of the deceased holder duly notarized at the nearest IDBIpaisabuilder branch or send it directly to our Mumbai office at IDBI Capital Market Services Limited, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021.In case you do not have your DP account with IDBI Capital and wish to get place a Transmission request for your demat account, you will need to inform and do the needful directly with your DP with whom you are maintaining your demat account.



6. What is the procedure to place the Transposition request for demat account?
   Ans: Click Service Requests link under Customer Care section. Click on ‘Change of Transposition Form’ link, which allows you to download the required form in two formats ( Word & PDF ). Take a print out of the same and fill in the details. Submit the request along with Demat Request Form and the share certificates at the nearest IDBIpaisabuilder branch or send it directly to our Mumbai office at IDBI Capital Market Services Limited, 5th Floor, Mafatlal Centre, Nariman Point, Mumbai - 400 021. In case you do not have your DP account with IDBI Capital and wish to get place a Transposition request for your demat account, you will need to inform and do the needful directly with your DP with whom you are maintaining your demat account.




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7. How can I view/update my profile online?
   Ans:You can verify your personal details and update your Tel No./Mobile No./Email id online instantaneously. To modify, go to ‘My Profile’ option under ‘Services’ on the top menu bar and change the details, and click the Submit button.



8. Do I need to intimate the companies individually regarding the changes in bank details/mandate for the shares held in my demat account?
   Ans: No, you don’t have to intimate the companies individually. When the dividend is announced for a particular security, the depository (NSDL/CDSL) will give all the details of the investors having electronic holdings of that security as of record/book closure date to the Issuer/Registrar.



9. Can I operate a joint account on “either or survivor” basis just like a bank account?
   Ans: No. The demat account or trading account cannot be operated on “either or survivor” basis like the bank account.



10. Can a second holder in the savings account be the trading account holder for IDBIpaisabuilder account, wherein the savings account is on either or survivor basis?
    Ans: No. As per the SEBI rule, the trading account holder should be the first holder in the savings account.



11. Can I add or delete names of account holders (second or third account holder) after opening an account?
    Ans: No. Addition/Deletion of the names of the account holders for a depository account is not permissible. If you want to change name or add/delete an account holder, you need to open a new account in the desired holding pattern. Also, please note that one individual can hold only one trading account.



12. What is the procedure if I wish to open a trading account or change the existing signature in the demat account but I am unable to sign due to old age/medical grounds?
    Ans: You need to submit a request letter mentioning the facts, affidavit with the thumb impression duly attested by a Gazetted officer/Notary, proof of identity and a doctor’s certificate.



13. If any loss occurs due to any technical problem from IDBIpaisabuilder site, who will bear the same and how will I be compensated for it?
    Ans: IDBIpaisabuilder is not liable to compensate for any loss that occurs due to any technical problem or any other problem. This clause has been specified in the online trading account-opening form.



14. What are the Annual Maintenance Charges (AMC)?
    Ans: This is the fee that is charged to maintain your DP account. You can check the same on the ‘Fee Schedule’ page on the site. In case you have opened your trading account with IDBIpaisabuilder through Punjab National Bank/IDBI Bank/Bank of Rajasthan, you will need to refer this query to your bank branch or to their call center.



15. How can I know about the brokerage charges?
    Ans: For brokerage charges, click on the ‘Fee Structure’ link on the home page. The contract note for the transactions done also clearly mentions the brokerage charges applicable on each trade.



16. What is the procedure to get F&O activated?
    Ans: For activating the F&O option you must submit the PAN card details to IDBIpaisabuilder. In case F&O is not enabled, you need to intimate our Customer Care desk by email and within 48 hrs the F&O option would be activated provided you have submitted the PAN details. Clients who have not submitted the PAN details will not to be allowed to trade in F&O. Also, if you account was opened before Aug. 2006, in all probability you will have to sign a supplementary agreement. This can be taken from your nearest IDBI Capital branch.



17. What is the procedure to register for Trade-over-Phone (ToP) facility?
    Ans: You have to register yourself for ToP by using the option of registration at the backside of the brokerage rate card at the time of signing on your new account with IDBIpaisabuilder. ToP would then be activated as part of your new trading account activation process. Or you can register for it online from ‘Services’ in the top navigation bar. Presently, you can only place equity orders through this facility.

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PASSWORD

1. What should I do if I have forgotten my password?
   Ans: Just click on the ‘Forgot Password’ link on the login page and given in the details. A new system generated login/trading password will be immediately emailed on your email id registered with us.



2. What needs to be done if an error message like ‘Invalid email id’ is displayed while using the ‘Forgot Password’ link to get the new system generated login and trading passwords?
   Ans: This kind of an error is reflected due to mismatch in the email id you type and the one in our records. You can confirm your registered email id with our CustCare desk. The registered email id and password (which is reset by CustCare) is disclosed to you after the verification. If there is a change in your registered email id you can modify the same by using the ‘My Profile’ link in the ‘Services’ section. Please change your password once you log in.



3. How can I change my password?
   Ans: You can change your login and trading password online at any time by using the ‘Change Password’ option in the ‘My Profile’ section. As per the “New Password Policy” laid down by SEBI, it is mandatory to change your password every 14 days. The password shall automatically expire after 14 days. After the 14th day whenever you logon to the site, you will be prompted to change the password.

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FUNDS TRANSFER

1. How much funds can I transfer online in a day’s time for trading purpose?
   Ans: If your bank is allowing you a hold facility (like IDBI Bank, PNB and Bank of Rajasthan) you can increase your buying power by putting on hold all your free balance in the savings/current account. There is no limit on the transfer of funds if you are using HDFC Bank or UTI Bank payment gateways.



2. I am not able to move funds
   Ans: Move funds/allocate funds, is a link to your Banking Site. This link directs you to the Banking Gateway of your linked Bank account. Please enter your I-net Banking Login id and the Login/Transaction passwords as per your banks system. On the successful completion of the transaction, the funds are moved to your trading account. In case of an unsuccessful transaction please contact your bank directly.



3. How and when will the funds from sales proceeds be credited to my bank account.>
   Ans: If you have a bank account with IDBI Bank/Punjab National Bank/Bank of Rajasthan, then you need not put a withdrawal request. IDBIpaisabuilder would automatically credit the amount in your bank account by the next working day of the payout. If you have a bank account with HDFC Bank/UTI Bank, the funds withdrawal requests placed before 5:00 pm from Monday to Thursday will be executed on the next working day by 12:30 pm. All withdrawal requests placed after 5:00 pm from Monday to Thursday will be executed on the 2nd working day for e.g. a request placed on Tuesday after 5:00 pm will be executed on Thursday by 12:30 pm (provided both Wednesday and Thursday are exchange and bank working days).
   Withdrawal requests placed before 5:00 pm on Friday will be executed on Monday by 12:30 pm. Requests placed any time between Friday (after 5:00 pm) and Sunday will be executed on Tuesday by 12:30 pm.



4. What is Buying Power?
   Ans: IDBI Capital keeps track of the funds inflows and outflows actual/expected in your trading account through the concept of Buying Power. Buying Power at any point of time indicates the total amount of stocks, Mutual Funds or IPOs you can buy. In order to trade for a particular amount in any of these instruments through IDBIpaisabuilder.in, you first need to create “Buying Power” by transferring funds to your trading account/marking a Hold in your bank account. Alternatively, you can create Buying Power by selling shares from your DP account.



5. What do I do if an error message “insufficient funds” is displayed while applying for an IPO?
   Ans: Investment in IPO, Mutual Funds and F&O requires Free Cash Balance in the Buying Power. The Buying Power is the summation of the Free Cash Balance and the Projected Inflows on account of the securities sold in previous two trading days. You are allowed to invest in F&O, IPO and MF only to the extent of Free Cash/Withdrawal Balance in your Buying Power. You need to increase your Buying Power by transferring funds from your savings account to your trading account online from the Banking Center.



6. What do I do if an error message “Exposure not available” is displayed while placing an order?
   Ans:This situation arises when the Buying Power is insufficient to place an order. In such cases you would be required to increase your Buying Power by moving the funds into your trading account or cancel the pending orders in the system.



7. Will my Buying Power increase as soon as I sell a stock?
   Ans: Sale proceeds from stocks can be used to buy stocks during the same settlement. Therefore, when you sell stocks, your Buying Power for that settlement goes up instantaneously. However, in case of PTST sell your buying power would increase by 80% of the sale proceeds. The 20% would be blocked till the successful settlement of the sell transaction. This is done to take care of any liabilities on account of short delivery of your buy transaction.

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TRADING

1. What are Cash Orders?
   Ans: Cash Orders are intended for settlement by delivery. Cash Buy orders are processed by IDBIpaisabuilder.in after ensuring that you have sufficient Buying Power to pay for all your obligations if the order is executed. IDBIpaisabuilder.in processes Cash Sell orders after checking that your delivery obligation can be met from stocks available in your Selling Power.



2. What are Margin Orders?
   Ans: Margin Orders need to be squared off before the end of the day. This is useful if you are planning to square off during the same day. In this case, only the margin amount is checked against your Buying Power Therefore, in Margin Orders you can place Buy orders of value greater than the amount of funds available with you, or place Sell orders without having the securities in your Selling Power. An initial margin amount is blocked from your Buying Power at the time of placing the order. However, Margin Trading involves risks and you should understand them carefully.



3. What’s the difference between Margin and Cash orders?
   Ans: Margin implies the intra-day transaction which gives you five times exposure for the Buying Power on select scripts specified from time to time by IDBIpaisabuilder.in and the same are compulsorily settled (squared-off) on the same day. Intra Day or Margin orders are allowed on select scripts, the list of which is available for you to see on the trading site. Cash transaction trades are settled on T+2 basis. To view the list of the scripts on which Margin Orders can be placed, click the Margin Stock List under the Help section of the Classic/Streaming platform.



4. Can I convert a Margin Order and Trades into delivery?
   Ans: To convert margin order to delivery order you need to cancel the margin order and place a delivery order. However, you can covert a Margin Trade into a Delivery Trade from Today’s Trades under Trading Site.



5. How is a Cash Order processed?
   Ans: Cash Orders are intended to be settled by delivery, although you also have the flexibility to square off within the same settlement.




Buy Order Processing:
When you place aCash Buy order, we check your Buying Power at that time. If your Buying Power is equal to or more than the Order value, the order is accepted and sent to the Exchange for execution. If your Buying Power is less than the Order Value, the order is rejected.

Sell Order Processing:
When you place a cash sell order, we check your selling power for that. If your selling power is equal to or more than the order quantity, the order is accepted and sent to the exchange for execution. If your selling power is less than the order quantity, the order is rejected.

Processing at the Exchange:
Once an order is validated for adequate Buying Power or Selling Power, it is sent to the Stock Exchange for execution until the order is executed, it would appear in your Pending Orders screen. At the Stock Exchange, orders are matched on price-time-priority and once a match is found, the order gets executed. One order may result in one or more trades.

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6. How is a margin order processed?
   Ans: In case of margin orders, only a specified percentage of the order value is blocked out of your Buying Power. These orders are intended to be squared off before the cut off time of 3.00 pm.
   Initial margin amount is blocked for both buy and sell orders. As soon as a margin order is placed, our system would check whether your Buying Power is more than or equal to the initial margin required. If yes, the order would be accepted and sent to the Stock Exchange. Until the order is executed, it would appear in your Pending Orders screen. At the Stock Exchange, orders are matched on price-time-priority and once a match is found, the order gets executed. This means that you have now created a buy position (if you had placed an order to buy shares) or a sell position (if you had placed an order to sell shares). Having created a position, you have two options:



• Square off the position during the day:
  Squaring off a position means closing out a margin position. Once a position is squared off, you would book the profit or loss arising from the same, which would be credited or debited by the Stock Exchange on day T+2 (T being the trade date).
• Convert the Position to delivery:
  If you do not wish to square off your Open Position completely, you would have to convert the position to delivery. A Margin Order once converted to delivery is treated exactly like a Cash Order.
7. What is Square Off?
   Ans: Squaring off an Open Position simply means placing an order for the reverse transaction type (for example, an Open Buy Position can be squared off by placing a Sell Order). You can place a Square Off request for a quantity less than or equal to the net quantity, that is, the Open Position quantity. Both Margin and Cash positions can be squared off.



8. What happens if I don’t square off my positions by 3.00 pm?
   Ans: The cut-off time for placing margin orders is 3:00 pm. If any margin positions are not squared off or converted to delivery by 3.00 pm, IDBIpaisabuilder.in will automatically generate square off requests for such positions.



9. What is Additional Margin Call?
   Ans: A margin position can be created subject to sufficient margins maintained with IDBIpaisabuilder.in. However, the value of your margin positions keeps changing continuously, depending on the fluctuations in the prices at the Stock Exchange. The margin positions are, therefore, continuously monitored to keep a track of the "Mark-to-Market (MTM) loss". If the MTM loss exceeds the threshold MTM loss, a Call for Additional Margin would be made, and the funds would be blocked to that extent. If enough funds are not available, securities are sold to release the margin.



10. What are Limit Orders?
    Ans: Limit Price is the best price at which you are willing to trade. In case of a Buy Order, Limit Price is the maximum price at which you are willing to buy. Your order will be executed at or below the price you indicated, provided a matching Sell Order is available. In case of a Sell Order, Limit Price is the minimum price at which you are willing to sell. Your order will be executed at or above the price you indicated, provided a matching buy order is available.



11. What are Market Orders?
    Ans: The order will be executed at the best market price. For a Market Order, you do not have to indicate any price. If you place a Buy Order, it will be executed at the best sell rate available at that time. If you place a Sell Order, it will be executed at the best buy rate available at that time. You can normally be sure that a market order will get executed immediately.




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12. Should I place a Limit Order or a Market Order?
    Ans: The advantage of a Limit Order is that you can be sure of the price at which the trade will take place. But the disadvantage is that the trade may not take place at all if your limit price is not reached. All orders placed with IDBIpaisabuilder are Day Orders. So, if not executed, they expire at the end of the day.
    You should enter a Limit Order, when you are ready to buy or sell only at your price. You can check regularly how the market price is moving and modify the Limit Price if required. You should enter a Market Order, when you want to be sure that your order will be executed at the best available price.



13. What is a Stop Loss Order?
    Ans: For a Stop Loss Order, you have to indicate the stop loss trigger price. A Stop Loss Order is released to the market only when the stop loss trigger price is reached. Until then, the order simply waits in the system. You can also specify a Limit Price for the Stop Loss Order. Once the order is released to the market on trigger, it acts like any other Limit Order.
    In a Buy Order, a Stop Loss Order is triggered, when the last traded price of the stock touches or goes above the Trigger Price. This is useful when you have a short position and you want to cut your losses, when the market price goes above a certain level. For a Stop Loss Buy Order, the Trigger Price has to be less than or equal to the Limit Price. In a Sell order, a Stop Loss Order is triggered when the last traded price of the stock touches or goes below the Trigger Price. This is useful, when you have a long position and you want to cut your losses when the market price goes below a certain level. For a Stop Loss Sell Order, the Trigger Price has to be greater than or equal to the Limit Price. Stop Loss Order is an advanced option. You may not normally need it.



14. When should I specify Disclosed Quantity?
    Ans: If you want to disclose only a partial quantity to the market, specify the Disclosed Quantity in your order. This is an advanced option and is normally not used by small investors. It can be left blank. Disclosed Quantity allows you to disclose only a portion of the total order quantity to the market. For example, if the order quantity is 10,000 and the disclosed quantity is 2,000, then only 2,000 is disclosed to the market. After this quantity is fully matched and traded, a subsequent quantity of 2,000 is disclosed. Thus, totally five disclosures with the same order number are shown one after the other in the market. This option is useful if you are placing a large order and you do not want the market to know the full quantity.



15. What is an Immediate Or Cancel order (IOC)?
    Ans:A Market or Limit Price Order which is to be executed in whole or in part as soon as such order is placed in exchange, and the portion not executed is to be treated as cancelled.



16. What is Order Status?
    Ans: As soon as you place an order online, it is sent to the Exchange for execution. However, the exchange matches orders on price-time priority and until a match is found for your order, it will remain 'Pending' at the exchange. It is also possible that only part of your ordered quantity gets executed at the exchange. The remaining quantity is called 'Pending Quantity' and such an order is called a 'Partially Traded Order'. Click on ‘Pending Orders’ to view such orders. If an order does not get fully executed till the end of a trading day, then the pending part of the order expires at the end of the day. 'Expired Orders’ are deleted at the end of the day. Once an order is fully traded, its status becomes 'Traded’. When an order has been rejected by our system (for example, orders rejected for insufficient funds or insufficient selling power or at the exchange) for any reason, its status is 'Rejected'.
    When you have cancelled an order, and such a cancellation request is accepted by the Exchange, the status of that order is 'Cancelled'.



17. What are Open Positions?
    Ans: Open Position is the net number of shares of any company that you have bought or sold on any day. You can close an open position by squaring it off, i.e. selling a buy position or buying back a sell position.
    Open Margin Positions are created on execution of Margin Orders. The open positions are reduced on execution of Cover Margin Orders or conversion of open positions to delivery. Open Cash Positions are created on execution of cash orders, or on conversion of Open Margin Positions to Delivery. The Open Quantity multiplied by the Average Buy or Sell price of a position gives the value of the position.




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18. What are Open Settlements?
    Ans: Open Settlements are settlements where trading has been done, but settlement has not yet been completed. At both NSE and BSE, the trading cycle is on a 'T+2' basis. Thus, trades executed on March 4, 2007 get settled on March 06, 2007. Hence, on March 06, 2007, there will be two Open Settlements with trade dates on March 05, and March 04, 2007.



19. How is Realized Profit / Loss calculated?
    Ans:For every position created, you can view the actual and notional profit or loss generated by that position. The Realized Profit is calculated on the transactions, which are closed. It is the actual or Realized Profit/Loss that has been crystallized by closing all or part of a position. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 per share and sell 20 shares of ACC at the average price of Rs.220 per share, then the realized profit or loss is (220-200)*20 = Rs.400.



20. How is Unrealized Profit/Loss calculated?
    Ans: The notional or unrealized profit is calculated by comparing the last traded price with the average buy price of the Open Position (that is, the Net Quantity). The Total P&L is the addition of the Realized and the Unrealized Profit. For example, on a day if you buy 100 shares of ACC at an average price of Rs.200 and sell 20 shares at an average price of Rs.220, then you have a net buy position of 80 shares in ACC. Suppose the market price of ACC is Rs.225. Then the Unrealized profit or loss is (225-200)*80= Rs.2000/-



21. Can I short sell?
    Ans: Yes, you can sell stocks that are listed in Margin Stock List without actually holding those stocks in your selling power, by placing a Margin Order. Please note that margin trades have to be squared off or converted to delivery before the margin Cut-off time.



22. Why do I need Buying Power for a Margin Sell Order?
    Ans: You need Buying Power for a Margin Sell because IDBIpaisabuilder uses the funds blocked for risk management. Initial margin amount is blocked for both buy and sell orders. As soon as a Margin Order is placed, our system would check whether your Buying Power is more than or equal to the Initial margin required. If yes, the order would be accepted and sent to the Stock Exchange.



23. How can I be sure that I shall be trading at a price I want to or at a price appearing on the website?
    Ans: On IDBIpaisabuilder you have an option to select the Market Depth of scrip wherein the top five bidders and sellers with the quantity and the price at that point of time on the respective exchanges are displayed. This facilitates you to select his bid/offer price. The traded orders are displayed in the “Today’s Trade” option on the site where as the pending order can be viewed from the “Today’s Order” option. Moreover, you also have the option of modifying or cancelling the order till the moment the order is executed at the exchange. Finally, an online trade confirmation reaches you as soon as we receive it from the exchange, while contract notes are dispatched at the end of the day through registered emails. On IDBIpaisabuilder, you decide what you want to buy and buy the share at the price you want to and therefore you are in total control of your trades.




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24. How can I modify my Order?
    Ans: You can modify an order any time before execution. You can do this by accessing ‘Today’s Order’ on the Trading Site and clicking on the 'Modify' hyperlink against the order, which you wish to modify. However, you cannot modify your order while it is “In Process”, i.e., confirmation is awaited from the Exchange for the acceptance of the placement of any order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified.



25. How can I cancel my Order?
    Ans: You can cancel an order any time before execution. You can do this by accessing ‘Today’s Order’ on the trading site and check the box against the order, which you wish to cancel and click the ‘Cancel’ button. However, you cannot cancel your order while it is “In Process”, i.e., confirmation is awaited from the exchange for the acceptance of the placement of any order or any cancellation/modification request. In case the order is already partly executed, only the unexecuted portion of the order can be cancelled.



26. How can I know if my order is executed?
    Ans: You can monitor the status of your orders as well as trades online on the ‘Today’s Orders’ screen. The status of an order is updated real-time in your ‘Today’s Orders’ screen. As soon as the order gets executed at the Exchange, it is displayed under ‘Today’s Trade’. As soon as the order gets executed at the exchange, its status becomes 'Traded'. One order could result in multiple trades at the Exchange. On the ‘Today’s Trades’ screen you can view the trade-level details of all trades executed for you.



27. What is the Average Execution Price?
    Ans:The order placed by you may have resulted in multiple trades. For each trade, certain quantity would have been bought (or sold) at a particular price. The Average Buy (or Sell) Price, is the weighted average Buy (or Sell) price across all executed trades.



28. Why am I not able to get the current market watch?
    Ans: Please follow the below mentioned steps:
    • Download Sun Java on your system, a link is provided on the login screen to install it .
    • Enable the Sun Java by making the IE settings shown in the PDF link on login screen .
    • Disable the Pop-up Blocker on Internet Explorer web browser for a temporary period of time while you are trading.
    • Delete cookies and delete files on Internet Options




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29. What are the timings for placing an After Market Order?
    Ans: IDBIpaisabuilder.in provides you with a facility to place your orders after the market hours and this is termed as After Market Order (AMO). AMO for equity are allowed only on the NSE exchange and can be placed between 8:00 pm to 8:55 am.



30. What’s the procedure to sell the shares?
    Ans: You need to allocate the shares from the Demat allocation. Put a Sell Order by specifying the sell quantity, price in the order form and click the Submit button. Confirm your transaction by clicking the Confirm button.



31. What is to be done when an error message “Exposure not allowed” is displayed while selling the shares?
    Ans: Every order requires some margin to be blocked at the time of placing an order. Even for Sell orders, the system checks for the margin to be blocked. If there is no sufficient margin left in Buying Power to be blocked for the sell order, the system gives the error message “Exposure not allowed”. At this time the user should cancel the pending orders in the system or transfer some funds (approx. 20% of the trade value).



32. Why am I not able to trade on my partly paid up shares?
    Ans: All partly paid-up shares are not available to trading on the Exchanges.



33. What is a contract note? Where can I see it?
    Ans: Contract note is a confirmation of trades done on a particular day for you. A contract note issued in the format and manner prescribed by NSE/BSE establishes a legally enforceable relationship between IDBI Capital (the trading member) and you (the client) in respect of settlement of trades executed on the Exchange as stated in the contract note. Contract notes are emailed to your registered mail id. You can either retain it in your inbox, we recommend you download them and save them for your future reference. \



34. I am not able to see the updated Last Traded Price in the Classic trading platform?
    Ans: Unlike the Streaming platform that reflects real time prices automatically, to refresh and view the updated Last Traded Price in the Classic platform you need to click the ‘Get Quote’ button.



35. Why a message “Cancelled by Exchange” is displayed while placing a an order?
    Ans: This kind of a message is displayed when an order is placed with an IOC option.



36. Why a message “Frozen by Exchange” is displayed while placing an order?
    Ans: This kind of message is displayed when an order is placed at a much higher price than its current market price.



37. Why a message “Rejected by Exchange” is displayed while placing an order?
    Ans: This kind of message is displayed when an order is placed outside the upper and lower circuit prices.

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MUTUAL FUNDS

1. What is a Mutual Fund?
   Ans: Mutual Fund is a mechanism of pooling together the savings of a large number of investors for collective investment, with an objective of generating regular or periodic returns and capital appreciation, with adequate safety and easy liquidity.



2. What is NAV?
   Ans: NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows:
   
   NAV = (Market value of the fund’s investments + Receivables + Accrued Income – Liabilities - Accrued Expenses)/Number of Outstanding units



3. How often is the NAV declared?
   Ans: The NAV of the schemes are declared on daily basis for Open ended schemes and on weekly basis for Close ended schemes. The NAV so declared are to be published at least in two daily newspapers and the same is uploaded on the AMFI website (http://www.amfiindia.com) daily before 8.00pm.



4. What is the Buying Power?
   Ans: The Buying Power is the purchase limit assigned to the client against the amount available in his account. For e.g. if a client is having the Buying Power of Rs.10,000/-, it means that the client is having Rs.10,000/- credit balance in his individual ledger account.



5. Does my Buying Power change with the MF transactions?
   Ans: Yes, if you execute a purchase request your Buying Power is reduced/debited by the amount of purchase made by you. If you execute a sale/repurchase/redemption request, then on receiving the proceeds of the same from the AMC, your Buying Power is increased/credited. If an AMC announces dividend then your bank account is credited directly.



6. How do I purchase Mutual Funds Online?
   Ans: Select “Mutual funds” under ‘Trade Now’ from the top menu bar and enter your log-in details. Check your “Buying Power” before placing any purchase order. In case of shortage of funds, you need to transfer funds from your Bank Account using “Funds Transfer” option. Click on the "Purchase Units" link. Select the fund house and the specific scheme in which you want to invest. You can also select the option for dividend by clicking the desired link. Click on “Submit “ button and on confirming the details click on the “Confirm” button.




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7. Can I modify/cancel my transactions?
   Ans: Yes, while placing any mutual fund order, the Modify or Cancel option would be available to you till the final confirmation of the order is placed by you. Once you Confirm you cannot modify or cancel the order placed by you. You can only modify/cancel any Systematic Investment Plan (SIP)/Systematic Withdrawal Plan (SWP) order placed by you.



8. What is a Systematic Investment Plan?
   Ans: Systematic Investment Plan is a method of investing into a scheme at regular intervals over a defined time frame. The investor can invest monthly or quarterly depending upon the SIP frequency opted. Since, a fix amount is invested regularly, the investor is able to get more number of units in the falling market and fewer units when the market is on the rise. This helps the investor to smoothen out the market fluctuations and the investment will be at a low cost over a period of time. This strategy in investing is called "Rupee Cost Averaging".



9. What’s the procedure for a SIP?
   Ans: To apply for a SIP online, click the SIP/SWP option and select the fund house scheme of your choice. Specify the amount of each installment, SIP frequency, period from the start date and click the confirm button.



10. From which account will my SIP subscription amount get deducted on a monthly basis?
    Ans: The amount for SIP subscription gets deducted on a monthly basis from your Buying Power. It is therefore, required that you maintain sufficient balance in the Buying Power otherwise the SIP will get rejected, stating the reason “Transaction rejected due to shortfall in Buying Power”.



11. What is Systematic Withdrawal Plan (SWP)?>
    Ans: The Systematic Withdrawal Plan is the facility extended to the investor to enable them to withdraw funds at regular intervals



12. Is there any NAV record date for sale and purchase of MF?
    Ans: There is no record date for NAV declaration. Applicable NAV for purchases and sale will be as per the SEBI stipulated cut off time. Currently, the cut off time for Mutual Funds is 3 pm in the offline mode, 1 pm for Liquid Schemes and 2.30 pm in our online platform (for all the Schemes). The AMCs will be declaring the record dates for dividends and bonus units, for their scheme.



13. What is the cut-off time for NAV for online MF subscriptions?
    Ans: In case of all online transactions, the cut off time is 2.30 pm. You will be allotted the units on the same day’s NAV for all the schemes, i.e. the applicable NAV will be on T+0 basis.



14. Which NAVs are uploaded on the MF Portal and when?
    Ans: NAVs of the AMCs which have signed Service Level Agreement with IDBI Capital are uploaded on the MF section latest by 11:00 am on the next working day (Monday to Friday).



15. In what form will I receive the statement of holding?
    Ans: One can view his/her holding online. However, he/she can request with custcare to get holding statement by email.



16. Will I get an online acknowledgement of my MF transactions?
    Ans: Yes, we will email an acknowledgement for all your transactions.



17. When will I be able to see my transaction details?
    Ans: Purchase, Sale or Switch transactions can be viewed at any time in the option – Check Status - Transaction History. It will also display the status of the transactions either (Pending, Rejected, Accepted). Further to this, to verify the holding of the Mutual Fund units, you can view the option - Check Status – Holding Statement. Generally within 2 working days the successfully executed purchase transactions are uploaded in the system and redemption transactions are completed within 3 working days.




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18. Can I transact anytime during the day?
    Ans: Yes, you can transact at any time of the day. However, in order to get the NAV of the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for NAV of the next day.



19. Can I purchase after the cut-off time?
    Ans: In order to get the NAV of the same day, you can purchase up to the cut-off time of the scheme, after which you will get the next day's NAV. (If the next day is a holiday, then the NAV of the next working day will be applicable).



20. Is there a minimum transaction amount for each scheme?
    Ans: As decided by the fund, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount in the ‘Purchase Units’ screen.



21. Can I transact on a holiday?
    Ans: Yes. You can place your request even on a holiday. However, the request will be processed only on the next business day and the respective NAV will be applied as per the Mutual Fund’s Offer Document. In case it’s a holiday for the Mutual Fund, where their Registered Office is located, those Mutual Funds should accept the investment on the next business day.



22. What is a Load?
    Ans: Load charges are imposed by the Fund Houses to investors to cover the expenses related to distribution/sales/marketing etc. of their schemes is called "Load”. The Load charged to the investor at the time of entry into a scheme is called Entry Load. The Load that the investor pays at the time of exit from a scheme is called Exit Load.




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23. How will we know about Entry and Exit loads?
    Ans: Entry and Exit loads are specified by the respective Fund Houses for their various schemes. This information is displayed on IDBIpaisabuilder, which needs to be verified by you before finalizing the scheme of your choice matching with your asset allocation profile as well as financial goals.



24. Can I Switch in or out of a scheme?
    Ans: Yes, you can switch out from your existing scheme/plan at a current prevailing NAV and switch in to the desired scheme/plan of the same fund house. To do so please click the Switch Schemes option under ‘Give Instructions’.



25. Are we charged any load for Switching?
    Ans: Switching loads shall be as per specification by respective Fund Houses. Some of them do not charge any Switching Loads amongst equity categories.



26. How do I know where the Mutual Fund Scheme has invested money mobilized from the investors?
    Ans: The mutual funds are required to disclose their schemes’ portfolio in the newspapers periodically. Some of the mutual funds send newsletters to the unit holders at the regular intervals, which contain portfolios of the schemes.
    
    The scheme portfolio shows investment made in various securities i.e. equity, debentures, money market instruments, government securities, etc. alongwith their quantity, market value and % to NAV. These portfolio statements also required to disclose illiquid securities in the portfolio, investment made in rated and unrated debt securities, non-performing assets (NPAs), etc. These portfolios are also available on the AMCs’ websites. These details are provided on IDBIPaisabuilder’s MF section. Investors are requested to go through it before investing.



27. How will I get dividend and redemption payment of MFs bought online?
    Ans: Dividend and redemption payment of MFs bought online are directly credited to your bank account through ECS by the concerned AMC/R&T agent.

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IPO

1. What is an IPO?
   Ans: IPO is an acronym for Initial Public Offering. This is the first sale of stock by a company to the public. A company can raise money by issuing either debt (bonds) or equity. If the company has never issued equity to the public, it's known as an IPO.



2. What is book building?
   Ans: Book building is basically a process used in Public Issue for efficient price discovery. It is a mechanism where, during the period for which the Public Issue is open, bids are collected from investors at various prices within a Price Band. The offer price is determined after the bid closing date.
   
   Securities and Exchange Board of India (SEBI) guidelines define book building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document".



3. Do all the IPOs have to be through Book Building process?
   Ans: No, depending upon the issuer company, certain IPOs are offered at Fixed Price also.



4. What is the number of days for which bid remains open in Book Building?
   Ans: Book remains open for a minimum five days in the Book Building process.



5. What are the types of the Book Building IPO?
   Ans: There are two types of Book Building IPOs. One having Floor Price only and the other having Floor and Ceiling price.



6. What are Floor and Ceiling prices in Book Building?
   Ans: When a company offers shares to the public through the Book Building process, it fixes a price band, which sets the minimum and maximum price limits at which the bids can be made by the investors for acquiring the shares of the company. While the Floor Price symbolizes the minimum price at which the investors can bid for the shares, Ceiling Price is the maximum price at which the investor can make bids.




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7. What is 'Cut-Off' price?
   Ans: The Cut-off option is an option given only to the Retail Individual Bidders indicating their agreement to bid and purchase at the final Issue Price as determined at the end of the Book Building process.



8. Is it possible to enter bids less or more than the Floor Price and Ceiling Price respectively?
   Ans: No, because the system tends to automatically reject the bids, which are lower than the floor price and higher than the ceiling price.



9. Who are Retail Individual Bidders (RIBs)?
   Ans: Retail Individual Bidders are those that can bid for shares where the application amount does not exceed Rs.1,00,000/-.



10. Who are Non Institutional Bidders?
    Ans: If in case your investment exceeds Rs.1,00,000/- you will need to make an application as Non Institutional Bidder.



11. Will I have to give my PAN/GIR Number and I.T., Circle Ward and District?
    Ans: If your application value is for Rs.50,000/- or more, ensure that you mention your PAN/GIR Number allotted under the I.T. Act and ensure that you have attached copies of PAN card or PAN allotment letter with the Trading Application Form. If the application is made jointly, both the holders have to give their PAN details.



12. How do I apply for an IPO online on IDBIpaisabuilder?
    Ans:
    
    • Select “IPO” from the ‘Trade Now’ option on the top menu bar and enter your log-in details.
    • Check your “Buying Power” before placing any purchase order. In case of shortage of funds, you need to transfer funds from your bank account using “Funds Transfer” option.
    • Choose the IPO in which you want to make an application.
    • Choose the Demat account number and status.
    • Enter bid details like quantity and price under Option I.
    • If you wish to make multiple bids then enter the above details in Option II and Option III as per your requirement.
    • Click on submit to complete your application.



13. Can I make multiple applications?
    Ans: No. You can make only one application under one given Demat account for a given IPO.



14. What is the amount of money that I have to transfer if I make 3 bids in a Book Building IPO?
    Ans: You will need to transfer an amount equal to the maximum value out of the three bids. i.e. your Buying Power should be sufficient to meet the maximum value out of the 3 bids that you enter.



15. What will be the allotment and refund process?
    Ans: The Issuer Company will decide the basis of allotment and if allotted the shares will be credited to your Demat account under which the application was made. Refund Order if any will be directly credited to your bank account through the Electronic Credit Service (ECS) which is available currently at select centers only where the clearing house is managed by Reserve Bank of India. In other cases the refund will be sent to your address registered against the Demat account with the bank particulars duly printed on it.

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