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• General queries

What is India Infoline Ltd. all about ?

It is the corporate entity that owns all rights associated with the website, www.indiainfoline.com which has emerged as India’s leading site in business, finance and investments. We generate high quality and timely reports over a diverse field of topics mentioned above using our high qualified and expert research team. Our information base covers a vide range of topics including company and sector research, news analysis, stock market data and analysis, mutual funds, personal finance, taxation etc. A team of people with excellent academic qualifications and professional credentials manages the company. With over 10 million registered users, India Infoline.com is the most popular website on business and finance in India.

What is India Infoline Securities Pvt. Ltd. ?

It is a wholly owned subsidiary and stock broking arm of India Infoline Ltd.

What is E_broking (online stock trading) ?

E_broking is an internet enabled system that allows the user to buy and sell shares on the exchange directly. You can log into a site like 5paisa.com and execute trades on the exchange.

What is www.5paisa.com all about ?

It is a focussed website for online stock trading. 5paisa.com is a trade name owned by India Infoline group.

What are the exchanges where 5paisa.com offers internet trading facilities?

Initially, we’ll be offering net trading facilities on the NSE. We will include BSE as soon as possible.

Why should I trade on 5paisa.com?

We offer five compelling reasons to trade exclusively on 5paisa.com:

1. Paisa sense: 5paisa.com charge the least brokerage, only 5paise per Rs.100 (ie.0.05%) brokerage for day trading. For trades that do result in delivery there is a nominal charge of 0.20% for securities handling. At this time other players charge a commission of 0.50%-1.00% which is substantially higher than our rates. click here for more details

2. Personalised service: we offer the highest level of personalized customer service using call centers, dedicated staff and e-mail. We endeavor to ensure that your online experience is of international standards by investing in technology.

3. Probity: We do not trade on our own account and make our employees adhere to stringent standards so that there is no potential conflict of interest.

4. Protection: We have invested in technology to ensure protection against fraud and hacking. We use encryption, firewalls and two level password protection to ensure this.

5. Pedigree: This site is a part of the India Infoline group, which ensures high research quality, investment ideas and news scoops.

• Client Registration and Operations

Who can open a trading account with India Infoline Securities Pvt. Ltd. ?

The 5paisa facilities are available to Resident as well as Non-Resident Indians. Individuals as well as entities like sole proprietary/partnership/corporate firms can open a trading account.

How do I open a trading account ?

Call us at (022) 6850101/6850505 or register yourself on www.5paisa.com by giving your details. Once you register you have the option of receiving forms by mail or having our executive visit you.

How do I get my user ID and password for the first time ?

It is given once you get registered on the website. The trading password will be issued only on completion of all registration formalities.

How safe is my user ID and password ?

The password is generated by the system and send to you such that, not even employees of 5paisa.com would know about it. It will be stored in our database in encrypted format so no one can get to know the actual password. To ensure complete safety and privacy the user will be forced to change his password the very first time he logs into the trading site.

If I’ve forgotten the password is forgotten, what should I do ?

At the time of registration, you will be asked to create certain hint questions that will enable us to validate your user name and account. On successful validation, you will be sent a new password through e-mail. You will be required to change this password in your next login.

What products do you offer ?

5paisa.com offer the following products:

Margin Trading

Delivery Based Trading

How much money do I need to start trading ?

We offer facility to execute buy and sale transactions upto a calculated trading limit, defined as a multiple of cash amount deposited by you. After registration, you will be required to deposit a certain amount of initial margin deposit, which will be used to calculate your trading limits. The deposit can be of any amount, but for ease of your trading operations, it should not be less than Rs. 5000/-(Rupees five thousand only).

Can I deposit margin online?

Yes, if you have an internet enabled account with banks like HDFC Bank, ICICI Bank, UTI Bank, Citibank, Global Trust Bank or Centurion Bank who allow internet banking. We are constantly adding payment gateways with Internet enabled banks

What is the registration/account opening charge ?

There is a nominal charge of Rs.500/-(Rupees Five Hundred only) towards stamp duty, legal and processing fees for opening the account.

What are the documents required to open an account ?

• Banking and Depository interface

Do you offer banking and DP facilities?

We are not a bank, and in that sense cannot offer any banking services. But what we have done is tied up with Internet enabled banks like HDFC Bank, Global Trust Bank, Citibank, UTI Bank, ICICI Bank and Centurion Bank .to offer you net transfer facility. We do provide DP facilities under the name India Infoline Securities Pvt. Ltd. It is recommended to open the designated accounts with us, as it will ease transactions on 5paisa.com.

What if I already have a DP/Bank account with some other bank or depository participant?

You can use your existing bank and DP accounts, but you have to ensure that we receive clear funds/shares in our accounts two days before the pay-in to the exchange.

If I go for your designated bank does I need to maintain any balance in my bank account?

You need to maintain a minimum balance with the respective banks. For any general banking queries, please visit the respective bank website.

How do I start trading?

After you have paid in an initial deposit, we will update our database and activate your ID and you can log onto the site and commence trading. The margin money may be deposited in our account through the internet or you may deposit it by cheque at any of our branches (list of the branches is available on the home page of www.5paisa.com.

Can I buy share of any value?

You will be given an exposure limit, which will depend on the margin deposited by you. It will be a dynamic online process visible to you on your terminal once the order has been placed. If there is a shortfall in the margin amount, the exact amount of shortfall will be displayed. You may utilize the net banking facility and immediately transfer the shortfall and execute the trade.

Can shares of any company are traded?

We will be offering facilities in scrips that are in compulsory demat for all investors.

Can I modify/cancel my orders?

Orders, which have not been executed, can be modified/cancelled. Also orders which have been partly executed can also be modified/cancelled.

Do I get online confirmation on orders and trades?

As soon as an order is executed on the exchange, you will get an online confirmation that the order has been executed. Simultaneously, e-mail is also sent to you giving details of your order. The contract note will also be dispatched to your mailing address within 24 hrs. of the trade being executed.

How do I know the status of my orders?

You can view the status of all orders whether executed or not from the order book. Executed orders can also be viewed in the Trade Book.

What is the brokerage that will be charged?

Margin Trading : 0.05% of the value of transaction

Delivery : 0.25% of the value of transaction

Statutory charges will be levied on an actual basis and are not included in the brokerage.

Minimum Rs. 25/- (Rupees twenty five) will be charged on a given day of trade.

The management reserves the right to change these rates without notice and the latest rate card has been put up on www.5paisa.com for ready reference.

Can I enter orders after trading hours?

Currently you cannot place orders outside trading hours. However we are working on this and very shortly it will be possible to enter orders outside trading hours.

When do I need to give shares/funds for pay-in ?

Shares sold by you have to be credited into our pool account two days prior to the pay-in to the exchange. In case you open DP account with us and give us power of attorney to operate the same, we shall do the needful to fulfil your delivery obligations. For shares purchased by you for delivery, please ensure that we receive clear funds in our accounts two days before the exchange funds pay-in.

When will I receive shares/funds after the payout?

You will receive shares within 48 hours of our receiving the payout from the exchange. In case your account shows a debit, the system will automatically hold back the shares. In such an event, shares will be transferred to your DP account only after you clear your account with us.

Typically funds are credited in your 5paisa account itself and limits are set accordingly. In case, you want to withdraw funds, you have to make a request, either by phone, email or through spefic pages on our website and funds will be released to your bank account. For customers who have not opened accounts with our designated banks, please note that you will receive cheques payable at Mumbai. Therefore it is advisable to open accounts with our designated banks who offer net banking facilities, to ensure timely payments and receipt of funds to and from us.

• Stock exchange related queries

What is a settlement cycle?

A settlement cycle on the Exchange is an account period for the securities traded on the exchange. At the end of this period, the obligations of each client are calculated and the clients settle the respective obligations as per the rules, bye laws and regulations prescribed by the Clearing House.

What is Rolling Settlement?

Normally a rolling settlement is on T+5 basis, i.e. the trade is settled on the fifth working day from the date on which it was initiated. The Pay-in and the Payout take place on the fifth day itself.

What are circuit filters?

Circuit filters or limits are a pre-defined price bands in which a particular stock can go up or down on a given day.
Currently in NSE all the scrip’s which participate in the NIFTY(Sensitive Index) can move +/- 10% in a day whereas all the other scrips can move +/- 20% in a day.

What are the different order types?

The different types of orders that can be routed depend on various parameters.

Time Conditions

• Day order is an order, which is valid for the day on which it is entered. If the order is not executed during the day, the system cancels the order automatically at the end of the day.

• Good Till Cancel (GTC) order, will remain active with the exchange till either cancelled by the client or in case of NSE, it cancels all GTC orders in the evening of the last day of the settlement.

• Good Till Date (GTD) order, allows the Client to specify the date upto, which the Order should stay in the system. If the Order is not executed till such date that is specified then it expires at the end of this period and gets cancelled from the system. However in case of NSE the maximum day allowed by the system is same as in GTC Order

• Fill or kill order, requires the execution of order as soon as it is released in the market failing which the order shall be cancelled and removed from the market.

Price Conditions

• Limit Order: the Client while inputting the Order in the system specifies limit price. The Order shall be executed only if the market reaches the Limit price specified by the Client.

• Market Price Order: A Market price order is an order given by the client to buy or sell stocks at the available market price at that particular time. Normally market price orders are converted into Trade if there is sufficient quantity available in the market. If the order is not converted into trade then it will be converted into a limit order and will get cancelled end of the day.

• Stop Loss Orders: In a Stop loss order the Client is required to fill in two prices, 1. Trigger Price and 2. Limit Price. Traders to limit the loss on open position normally use stop loss orders. In a stop loss order, the Client can specify a trigger price which is higher than the market price in case of buy stop loss order and lower than the market price in case of sell stop loss order. As the market reaches the trigger price specified by the Client, the Order is sent to the Exchange till the specified Limit Price. For example if you have a position of 100 Reliance @ Rs.340 and the market price of Reliance is bid Rs.340 and offer Rs.342. You decide that if the price of Reliance reaches Rs.332 you would want to curtail your loss and sell your position up till Rs.330. In this case you can input a stop loss order where the trigger price would be Rs.332 and the Limit price would be Rs.330. If the price of Reliance touches Rs.332 in the market your stop loss order will get converted into a limit order to sell 100 Reliance @ Rs.330. If there is any buyer standing to buy between Rs.330 and Rs.332, then your order will get traded.

• 4) A Fill or Kill order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is cancelled from the system. Partial match is possible for the order, and the unmatched portion of the order is cancelled immediately .

Quantity Conditions

• Disclosed Quantity: The disclosed quantity attribute allows the client to hide the actual quantity that he wishes to buy or sell. Client can place an order to buy or sell shares and also specify the disclosed quantity. When the order is sent to the Exchange only the disclosed quantity will be shown. For example if a Client wishes to buy 1000 shares of Reliance, he/she can put in disclosed quantity as 100, thus the order that is sent to the Exchange will only reflect a order to buy 100 Reliance whereas the actual order quantity is 1000. The Exchange may set the disclosed quantity criteria from time to time.

• Order Types: An "Active" order is an order entering the system. Once this order does not find a matching in the system as an outstanding order and is called a "Passive" order. Best sell order is the order with the lowest price and a best buy order is the order with the highest price. The unmatched orders are queued in the system by the priority based on price.

• A buy order with a higher price gets a higher priority and similarly, a sell order with a lower price gets a higher priority.

What is Book Closure / Record date?

Book closure is a period announced by a company for taking stock of its shareholders prior to AGM, dividend payout, Bonus, split and various other benefits. A Record date is a date specified by the company in order to allow its new shareholder to register with the company to receive corporate benefits as and when declared by the company.

What is a No-delivery period?

No-delivery period (ND) refers to a book closure or record date as announced by the Company. The Exchange sets a no-delivery period for that security. During this period, trading is permitted in that security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that the investor’s entitlement for corporate benefits is clearly determined.

What is an Auction?

The Exchange can initiate an auction in case the selling Trading Member is unable to deliver the shares, for various reasons such as short delivery, bad delivery and objections. The Exchange purchases the requisite quantity in the Auction Market and gives the delivery to the buying Trading Member. This process takes 5 days to complete and thus in case if you have a purchase position and the shares are not delivered by the opposite selling member, then there could be a delay in receiving the shares, until such time the Exchange completes the Auction process..

What happens if no one offers shares in Auction Market ?

In case there is no offer for shares in the auction market, then as per the rules of NSE the sell trade is squared off at the highest price for the scrip in the relevant settlement or at 20% above the last available trading price on NSE, which ever is higher.