National Securities Depository Limited · BSE:NSDL
National Securities Depository — Investor Presentation (July 2023)
42 slides from National Securities Depository's investor presentation, July 2023
Slide 1: Let’s Understand Margin Requirements and Margin Trading
Let’s Understand Margin Requirements and Margin Trading Be A Prudent Investor
Slide 2: Indian Securities Market - Overview
Indian Securities Market - Overview Market Regulator SEBI Stocks and Commodities Other Depositories Derivative Intermediaries Exchanges Stock Brokers, RTAs, Mutual NSE, BSE, MSE, NSDL, CDSL Funds, MCX etc. Investment Advisors etc.
Slide 3: Starting Investment in Securities Market
Starting Investment in Securities Market Accounts Required Bank Account Trading or Broking Account Demat Account Many DPs offer a 3-in-1 account opening facility which gives you the convenience of opening a trading, demat and bank account – all together. Now many DPs are offering online demat accoun
Slide 4: About NSDL
About NSDL 1996 Demat accountholders First One of the leading present in 99.27% of Depository in Depositories in the world pincodes in India India Wide service network – all States and UTs No. of Service Centres – 59,682
Slide 5: Growing Custody Value
Growing Custody Value > 89% 294.45 337.39 Market Share 227.51 119.30 67.56 Dec. Dec. 2015 Dec. 2020 Dec. June 2023 2010 2021 Total Value of All Assets Held In All NSDL Demat Accounts in ₹ Lakh Crore
Slide 6: NSDL’s Progress
NSDL’s Progress 350 Bank deposits and 302 300 NSDL Custody Value 250 244 200 186 172 169 160 155 146 150 140 Aggregate Bank Deposits 129 of All Scheduled Banks (in 117 ₹ Lakh Crore) 110 100 NSDL Demat Custody Value (in ₹ Lakh Crore) 50 Bank Deposit Source : RBI 0 Bulletins Mar. 31, 2017 Mar. 31, 201
Slide 7: NSDL’s Progress
NSDL’s Progress GDP and NSDL GDPCustody Value and NSDL Custody Value 350 302 300 250 244 237 201 198 GDP at Market Price (in ₹ Lakh Crore) 200 190186 NSDL Demat Custody Value (in ₹ Lakh 171172 Crore) 154 160 146 150 100 50 GDP Source : https:// dbie.rbi.org.in/ 0 2016-17 2017-18 2018-19 2019-20 2020
Slide 8: Indian Securities Market - Depository System
Indian Securities Market - Depository System Issuer Company / RTA Clearing Corporation (NSE Clearing Other Depository Limited/ Indian Clearing Corporation Limited) DP 1 DP 2 Stock Broker / Stock Broker / Trading Member 1 Investor 1 Investor 2 Clearing Member 2
Slide 9: Services offered by Depository Participant
Services offered by Depository Participant Account Opening Change in account details Demat*, Remat of Account freeze securities, (Account level, ISIN Conversion & Redemption level of Mutual Fund Units and Quantity level) Transfer of securities** Pledge and Margin Pledge of securities *Even unlisted
Slide 10: Key points on Anti-Money Laundering
Key points on Anti-Money Laundering Legislative and Regulatory References • Prevention of Money Laundering Act, 2002 • Prevention of Money Laundering (Rules), 2005 • SEBI Master Circular – October 15, 2019 What is Money Laundering (ML)? • Money Laundering is “the process in which the proceeds of cri
Slide 11: Key points for all Investors
Key points for all Investors Individuals: • Provide officially valid documents for proof of identity and address • Furnish correct information on income, occupation, business, marital status, etc. • Provide accurate financial information – salary or business income as applicable • Inform about any c
Slide 12: Be a Prudent Investor
Be a Prudent Investor Keep record of documents signed, account statements, contract notes received and payments made. Save important emails and take periodic back up of data. Change password of your online accounts frequently. Never share your passwords, OTP, CVV and PIN with any one. Never click on
Slide 13: Be a Prudent Investor
Be a Prudent Investor Inform your DP about any change in your Personal Information such as address, bank account immediately. Always mention your Mobile Number and email ID in account opening form and keep them updated. NSDL publications and presentations are available in Hindi, English and other la
Slide 14: Be a Prudent Investor – Don’ts
Be a Prudent Investor – Don’ts Never deal with any unregistered or unauthorised market intermediary. Check on the SEBI’s website that your stock broker / authorised person, mutual fund distributor, investment advisor are registered with SEBI. Never invest with borrowed money. Avoid unnecessary loans
Slide 15: Be a Prudent Investor
Be a Prudent Investor Nominate Karo - Surakshit, Samajhdaar, | a NSDL aur Atmanirbhar Niveshak Bano! Tecate Hurry!! Last date is 30% September, 2023 ; r NOMINATE YOUR LOVED ONES TODAY!! Opting-in/Opting-out of nomination is mandatory in your Demat Account to avoid your account becoming inactive SCAN
Slide 16: Be a Prudent Investor
| Be a Prudent Investor @ NSDL Technology, Trust & Mawel (er Do Not Fall Prey To Stock Tips, Hot Picks etc. Circulated on Twitter, Instagram, WhatsApp, Telegram, Unsolicited SMS, YouTube Channels etc. Be a Prudent Invest nsult a SEB/ intsgiist red Investment Advisor and D i e Investing
Slide 17: Be a Prudent Investor
| Be a Prudent Investor @ NSDL Technology, Trust & Mawel (er Do Not Invest In Any Ponzi Scheme, Unregistered Collective Investment Scheme or Any Other Schemes Promising Unrealistic Returns
Slide 18: NSDL Newsletter for Investors
NSDL Newsletter for Investors The Financial Kaleidoscope – Free monthly newsletter Newsletter – The www.nsdl.co.in Education Financial Kaleidoscope
Slide 19: SEBI’s Mobile App for Investor Education
SEBI’s Mobile App for Investor Education
Slide 20: If You are holding Securities in Paper form
If You are holding Securities in Paper form 1. Provide PAN, KYC information and Nomination to RTA / Company for all joint holders. 2. Get PAN and Aadhaar linked for all joint holders. 3. Folio may be frozen if not complied. 4. Electronic interface provided by company / RTA for various service reques
Slide 21: Grievances Redressal
Grievances Redressal Read Investor Charter at www.nsdl.co.in Education 1. Lodge your complaint with SEBI at www.scores.gov.in/ or SEBI Mobile App - SCORES 2. SEBI Toll free helpline - 18002667575 / 1800227575 3. NSDL helpline - 022-48867000/022- 24997000 4. Online submission of Grievances at www.n
Slide 22: Margin and Margin Trading
© NSDL Margin and Margin Trading
Slide 23: What is Margin?
What is Margin? 1. Margin is the amount and / or security an investor must pay to his / her stock broker before executing a trade. 2. Margin requirements are prescribed by SEBI and enforced by the stock exchanges. 3. Margin requirements do vary for different kinds of securities and investor category
Slide 24: What is Margin Trading?
What is Margin Trading? 1. It is a facility provided by stock broker to clients whereby an client can buy or sell securities without paying 100% amount upfront towards purchase consideration or 100% shares that are sold. 2. The part paid by the investor is called ‘Margin’ and the portion that is not
Slide 25: What is the Purpose behind Margin Requirements?
What is the Purpose behind Margin Requirements? 1. Margin requirements help investors to buy securities of their choice without paying the full amount of money beforehand. 2. Margin Trading helps in increasing trade volumes. 3. By enforcing margin requirements, exchange controls the trading activity
Slide 26: Types of Margins for Cash Segment
Types of Margins for Cash Segment 1. Value at Risk (VaR) Margin or Initial Margin • It is intended to cover the largest loss that can be encountered on 99% of the days. For liquid stocks, the margin covers one-day losses while for illiquid stocks, it covers three-day losses to allow the exchange to
Slide 27: What is Peak Margin?
What is Peak Margin? 1. Peak Margin is the minimum margin that must be collected by brokers from their clients in advance of placing any intraday / delivery order in the Cash and Derivatives segments. 2. Clearing corporations take alteast four random snapshots of all margin status during the trading
Slide 28: Implementation of Peak Margin
Implementation of Peak Margin Phase 1 Phase 2 Phase 3 Phase 4 • 25% of the • 50 % of • 75 % of • 100 % of upfront the upfront the upfront the upfront margin to margin to margin to margin to be be be be available available available available before the before the before the before the trade is trade
Slide 29: How to Calculate Margin?
How to Calculate Margin? 1. Stock exchanges provide online margin calculation tools on their website. 2. Most brokers also enable clients to know the margin requirement before undertaking the trade through their website and mobile apps. 3. Certain margins are dynamic and changes depending upon the m
Slide 30: How to Calculate Margin? Example
How to Calculate Margin? Example
Slide 31: What is Daily Margin Statement?
What is Daily Margin Statement? 1. All stockbrokers are required to send a daily margin statement to their clients. 2. This statement provides details of various margin applicable to trades undertaken by client through that broker. 3. It includes - i. Client code and name, Trade day (T) ii. Total ma
Slide 32: How to Read Margin Statement?
How to Read Margin Statement?
Slide 33: How to fulfil Margin Requirement?
How to fulfil Margin Requirement? 1. Once you know your margin obligation, you should fulfil it at the earliest to avoid penal interest. 2. If a client does not pay the margin obligation and broker is penalised by clearing corporation due to this, then the broker may pass on the actual penalty to th
Slide 34: How to fulfil Margin Requirement?
How to fulfil Margin Requirement? 1. Free and unencumbered Balances (funds and securities) available with the Broker in different segments of the Exchange. 2. Bank guarantee issued by any approved bank and discharged in favor of the Broker. 3. Fixed deposit receipts issued by any approved bank and l
Slide 35: How to fulfil Margin Requirement?
How to fulfil Margin Requirement? 7. Free and Unencumbered funds / securities in the demat or bank account of the client for which the client has given POA in favor of the broker may be considered as fulfilment of margin requirements by client if broker or its associate company is a DP. 8. Securitie
Slide 36: Margin Requirement for Buy Today, Sell Tomorrow
Margin Requirement for Buy Today, Sell Tomorrow In case client buys a share on T day with upfront payment of applicable margin and if client sells the same shares on T+1 day, then 1. Client needs to pay separate margin for sale trades also, as Buy and Sell trades are executed in different settlement
Slide 37: What is Margin Pledge?
What is Margin Pledge? 1. W.e.f. August 1, 2020, collaterals in form of securities can be accepted by stock brokers in form of margin pledge created on the securities held in client’s demat account. 2. Instruction to create margin pledge on securities can be given by client or by the person holding
Slide 38: How to Submit Margin Pledge Instruction?
How to Submit Margin Pledge Instruction? There are three ways to submit Margin Pledge Instruction – 1. You may fill up, sign and submit Form 43 – Margin Pledge Form in paper form to your DP. 2. You may submit Margin Pledge Instruction electronically using NSDL SPEED-e platform, if you are a register
Slide 39: How to Submit Margin Pledge Instruction?
How to Submit Margin Pledge Instruction? 3. Your stock broker (Trading Broker) may initiate Margin Pledge instruction on your behalf if you have given a Power of Attorney (POA) in his favour. In this case, you will need to confirm the Margin Pledge instruction using OTP received on your registered
Slide 40: Margin Pledge Confirmation
Margin Pledge Confirmation Receive Confirmation Link On receipt of margin pledge Verify Confirm the Pledge information 5 1 instruction, NSDL shall send a link displayed and if satisfied, to ‘Confirm Margin Pledge confirm the instruction to Transaction’ through SMS and create pledge with the OTP emai
Slide 41: Follow us on
Demat Ki Paathshala - An initiative by NSDL for Investor Education Follow us on
Slide 42: THANK YOU
THANK YOU We welcome your feedback and suggestions about this program at www.nsdl.co.in / [email protected]
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