Equity is a must for every well-balanced portfolio. So, irrespective of whether you are a high net worth investor or a small retail investor or you have a large or timid appetite for risk, you must hold some portion of your assets in equity. This is because it is the only instrument that has the ability to truly deliver a high return, when held over a long period of time.

However, the amount of equity that you hold in your portfolio is a very subjective decision and will depend upon various factors. These include your investment objectives, time horizon and risk appetite. But as a general guideline, there’s a thumb rule that states that to decide upon the proportion of your assets that should go into equities, reduce your age from 100 and that’s the proportion of your money which should be put in equities. The remaining can be invested in fixed income securities.

Every investor must have his same analysis before investing money in equities…

There are various factors that determine the value of a stock. Understanding these will help you to pay a price that reflects the true value of a stock.

Demand and Supply: In the short term, the basic economic theory of demand and supply determines a stock’s worth. So, when the demand for a stock exceeds its supply (that is, there are more buyers than sellers), its price tends to rise. And, when supply overtakes demand (that is, sellers exceed buyers), the stock loses value. However, these are short-term market trends, which tend to get evened out over a period of time. In the medium to long-term, a stock is driven by the company’s fundamental strength i.e. business potential, past performance, competence and credibility of its promoters, management, etc.

Growth potential: Investors are willing to pay a premium for stocks of companies that have the potential to increase their revenues and net profits. ‘The greater this growth potential, the higher the premium given to the stock’. If a company proves that it is capable of sustaining growth, the market will continue to give it high valuations. And, that’s likely to be the major driver for stock valuations.

Fundamentals: A company’s growth outlook is linked to its business prospects and how well its management is capitalizing on the existing opportunities. The quality of a company’s management is crucial. So, pay attention to the management practices of a company and its level of corporate governance.

Buy low and sell high is the ultimate guide to successful stock investing. It is also the reverse of what many investors do, although they don’t intend to. They tend to buy high and sell low because they use price, and in particular, the price movement, as their only signal to buy or sell.

Investors are tempted to buy stocks that have shot up and are basking in the media spotlight just to get a part of the action. They jump at a stock that is already trading at a premium… that’s how they buy high. Ironically, if a stock has had a good run up it may be time to sell, not buy (sell high).

On the flip side, when a stock price is falling, most investors may want to sell in a panic, although the company has not lost any intrinsic value and still remains a sound investment…that’s how they sell low. In fact, when a stock’s price has fallen, it’s a great time to buy (buy low), if your research on the company suggests that it is a good long term buy.

Experienced traders can make money jumping in and out of a stock that’s caught the public’s attention, but it’s not a game for the inexperienced and it can definitely not be called ‘investing’, in the true sense of the word. There are risks involved and tax consequences that apply to such trading, along with other issues, which means that most investors should leave this tricky activity to short-term traders.

There are various risks that companies are exposed to and when you invest in equity.

Business Risks: Your returns are affected by these risks. i.e. the risks associated with the prosperity of a business and the demand for its products

Financial Risks: The skill with which a company’s finances are managed to ensure that it has an optimum level of debt, equity, reserves, etc.

Industry Risk: Changes in technology, regulations, fashions, etc., affect the performance of an industry

Management Risks: The level of corporate governance, management skills and vision

Political, Economic and Exchange Rate Risks: These factors affect a company but are outside its control.

Before you start investing in equity, you need to open the following accounts:

          - A broking account with an AUTHORISED stock broker

          - A DEMAT account with a depository participant

          - A bank account for cash payments and receipts (you can use one of your existing bank accounts for this purpose)

The dividends that you receive on shares are not taxable in your hands. You are however, required to pay short term capital gains tax on any short-term capital gains that you make from transacting in shares. These are gains that arise from selling equity shares that have been purchased and sold within a period of less than 1 year. The rate of tax payable on such gains is 11.22% (i.e. 10% tax + 2% education cess + 10% surcharge, if applicable). There is no tax on long-term capital gains (i.e. shares if sold after 1 year from date of purchase).

Further, while transacting, you are required to pay Service Tax at the rate of 12.24% on the brokerage charges that you pay. In addition, you have to pay Securities Transaction Tax (STT) on certain types of sale and purchase transactions of shares. The STT rate for delivery-based transactions is 0.125% of the transaction value for both buyers and sellers. For non-delivery based transactions, STT of 0.025 per cent of the transaction value is payable.

If you have grievances against a listed company/intermediary registered with SEBI, you should first approach the concerned company/intermediary against whom you have a grievance. Then, if you are not satisfied with their response you can approach SEBI, who is the regulatory authority for such entities. SEBI takes up grievances related to issue and transfer of securities, non-payment of dividend, etc. with listed companies. In addition, this market regulator also takes up grievances against various intermediaries that are registered with it. Visit http://www.sebi.gov.in/ for more information.

• Through a NCFM certified authorized dealing desk
• Through Internet Online Trading platform
• Through a NCFM certified authorized Call and Trade Desk
• Through After market Hours facility available on Website (this is after markets are closed)

All Orders entered by customers are received in form of Contract Note that are through an Exchange certified and audited software, these notes are exact and are without any modification in the orders as placed by the client. These orders are passed through Risk Management System at Brokers end for checking the availability of margin in customer’s ledger and then they are pushed to Exchange platform for execution with same logic as defined by the exchange i.e. It has rate and time stamp along with client code as uploaded to the exchange.

There are NO counter party positions created by Broker.

There is NO such Proprietary Desk Running at Reliance Securities broking.

During trading hours all clients’ Mark to Market calculations are maintained as per exchange regulated calculation rules in the certified software. In case of FNO positions of a client, mark to market margin is maintained at exchange level for all broking clients.

Yes, all orders that are entered by client are going to exchange. There is one single order book maintained by Exchange for all brokers and all clients

All trades are time stamped at the time of entry to the exchange system and are given a unique code. Same timestamp and unique code is given on the contract note by the broker. Based on unique code, if client wants to verify the trade on exchange, he can enter the unique number on Internet facility given by exchange and can verify the respective trade details.

As per regulations, all customers are given a choice to opt for physical contract notes OR electronic contract notes (ECN). If a customer chooses to receive electronic contract note, digitally signed contract notes are delivered to clients registered email ID. Similarly, If a customer opts for physical contract notes, he is delivered with a physical contract note. However, if a customer has signed for Internet trading, he is compulsorily delivered electronic contract notes.

Regular Stock Purchase Plan (RSP Plan) is a facility which provides you an opportunity to invest systematically and in a disciplined manner in specified stock(s) or Exchange Traded Funds (ETFs).

You can place BUY orders for a pre specified amount /quantity in stock(s) of your choice based on the plan selected by you (daily/ weekly/ monthly). This means that a onetime selection of RSP Plan will allow RSL to place orders on your behalf on regular intervals.

All trading clients of Reliance Securities Ltd. (RSL) can avail it.

There is no need to track the market regularly i.e., once an RSP Plan is placed, the selected stock is purchased on your behalf as per your plan. It also:

• Helps bring down the average cost of investment
• Eliminates the risk of timing the market
• Accumulates wealth by investing small amount regularly
• Reduces  the risk of market volatility

An RSP Plan Request is an instruction given by you to RSL authorizing RSL to place BUY orders in your account as per the details specified by you.

No. You can place requests for "BUY" orders only.

No. An RSP Plan Request is merely an authorization given to RSL to place BUY orders in your account as per your instructions; hence funds are not required or used when you place a request. However, it is advisable to maintain funds in the ledger.

Your funds will be used at the time of placing actual RSP Plan orders in the market on a trading day.

No, your ledger balance will not be blocked. Your funds in ledger will be used at the time of placing actual RSP Plan orders in the market on the specified dates.

For example: if you have an RSP Plan to invest Rs 1000 monthly with the order placement date as 15^th of every month. Then on the 15^th of every month your ledger balance will be checked and depending on the availability of Rs 1000 free balance your RSP Plan order will be placed into the market.

No, RSP Plan Request can be placed only in the selected stocks and ETF (Exchange Traded Funds) mentioned in the RSP Plan list (available on the RSL website).

Link for the ‘RSP Plan Stock List’ is available under RSP Plan on our website in ‘Our Offerings’ tab.

The list can also be viewed post login on the RSP Plan Request page through ‘Search RSP Plan Stock’ button once your RSP Plan Subscription is activated. 

To view RSP Plan Stock List click here

Note: RSL may include or exclude any stock from the RSP Plan Stock list at any time without any prior intimation.  However, RSP Plan request already placed in any discontinued stock will remain active for the specified tenure.

No, RSP Plan request can be placed only in Cash segment.

No. Once you have placed your RSP Plan requests, RSL will place the RSP Plan buy orders on your behalf as per your RSP Plan schedule for the stock. You need not login to your account every time to purchase the shares.

Frequency means the time interval with which you wish to place your RSP Plan orders (after the start date) in your account. The first order will be placed on the start date specified by you and thereafter at the defined frequency for the total tenure as per your request.

For example: If you have placed an RSP Plan request for buying 100 shares of Reliance at a 'Monthly' frequency for a total period of  6 months with a start date of 15-05-2011. RSL will place 6 orders for this RSP Plan, i.e the first order will be placed on the start date (15-05-2011) and the balance 5 orders will be placed on 15^th of every month for the next 5 months.

You can select daily, weekly or monthly frequency.

You may select either Amount based RSP Plan or Quantity based RSP Plan. You can indicate your choice by selecting the desired option under the field "RSP Plan Type" at the time of placing the RSP Plan request.

Amount based RSP Plan is a type wherein a fixed amount (or approximately the same) is invested in your desired stock at each frequency. You need to specify the amount to be invested in the stock at your desired frequency. Do note that the amount specified should be equal to or above the minimum amount defined by RSL.

At the time of placement of your RSP Plan order, since quantity of shares have to be specified, the same will be calculated by dividing the RSP Plan amount specified by you with the previous day’s closing price of the stock plus 5% of the closing price.

Minimum investment you can make in RSP Plan is Rs 250 Daily or above in multiples of Rs 10.

In case of Weekly frequency minimum investment amount would be Rs 500 or above in multiples of Rs 50.

In case of Monthly frequency minimum investment amount would be Rs 1000 or above in multiples of Rs 50.

Quantity based RSP Plan is an RSP Plan type wherein a fixed quantity of shares of your desired stock is purchased at each frequency. In this plan, the quantity would be as specified by you and would be fixed while placement of orders as per your desired frequency. The order value would be based on the market price of the stock prevailing in the market at the time of order placement.

You can place an RSP Plan request for minimum quantity of 1.

In case of both Amount based and Quantity based RSP Plan Maximum tenure is 24 months, and minimum tenure is 1 month for daily, 3 months for weekly and 6 months for monthly frequency.

You just need to activate your RSP Plan Subscription under the RSP Plan link post logging into your account. It will be activated instantly and then you can place your request for the desired stock.

OR you can visit nearest RSL branch and fill up an RSP Plan Form for activation. Your RSP Plan facility will be activated within three working days of receipt of your completed form and you will be intimated through SMS and Email for your RSP Plan activation.

You can place RSP Plan request through Call N Trade/Branch once it is activated.

Once your RSP Plan facility is activated, you can login to your trading account and click on the RSP Plan link and proceed to place your RSP Plan request, OR you can call up Call N Trade or your Dealer to place the request over the phone.

Whilst placing RSP Plan Request you need to mention RSP Plan start date. Your RSP Plan will start based on the start date selected by you. Once you place a request your entire RSP Plan schedule from first to last order will be generated which you can check under ‘RSP Plan Request Summary’ tab. Your RSP Plan orders will be triggered on the scheduled dates.

You will specify your RSP Plan Start date whilst placing your RSP Plan request, which could be any date for Daily RSP Plan and incase of Weekly/Monthly RSP Plan you can choose any date out of 7^th, 15^th, 22^nd and 28^th. Your first RSP Plan order will be placed on the Start Date selected by you.

In case of Weekly RSP Plan your order will be placed on 7^th, 15^th, 22^nd and 28^th of every month. In case of Monthly RSP Plan your RSP Plan order date will be based on your selected Start Date. For e.g if you select your monthly start date as 15^th, then your orders will be placed on 15^th of every month.

In case the defined RSP Plan order placement date falls on a trading holiday, then the order will be placed on subsequent trading day.

RSP Plan orders are not scheduled for Saturday and Sunday, however orders are scheduled for all trading holidays falling on weekdays. Thus in case of a trading holiday falling on a weekday, the order will be scheduled and placed on the next trading day.

Hence incase of Daily RSP Plan, multiple orders will be placed on a day if the previous day(s) order could not be placed due to trading holiday.

Example: If Independence Day (15^th Aug) falls on Monday, then weekly/monthly RSP Plan order scheduled on 15^th will be placed on 16^th, and in case of Daily RSP Plan, two orders will be placed on 16^th, one previous order for 15^th and another order for 16^th.

Your RSP Plan order will be placed into market between 9:30 AM to 10:00 AM.

Note: Client’s orders under the scheme will be placed during 09:30 AM to 10:00 AM in the market hours on the order date specified by the client on best effort basis; however the order placement time may change due to system failure or any other reason. In such circumstances RSL should not be held responsible or liable for any actions, claims, demands, losses, damages, costs, charges, and expenses which client may suffer, sustain, or incur due to change in order placement time or non placement of the order.

All RSP Plan orders will be placed as market orders. Once your RSP Plan order is executed successfully the same will reflect in Traded Orders with the status as ‘Trade Confirmed’ with the Trade Price.

If you do not have sufficient free ledger balance as required to place your RSP Plan order, your RSP Plan order for that date will fail which will be displayed in Order Book with the status as ‘Rejected’ with the Reject reason as ‘RMS: Margin Exceeds’.

Yes. Reliance Securities Ltd. is merely your agent for placing orders as per the instructions given by you under the facility. RSL does not have any role to play in the execution of trades after the orders have been placed. Trade execution takes place at the exchange platform as per the order matching rules of the exchange. Thus there is a possibility that orders may be executed only partially or may not be executed at all; as is the case with normal cash transactions as well.

Your RSP Plan order can also fail in case if the market price of the stock goes above your defined amount of investment or you do not have sufficient ledger balance at the time of order placement.

If any RSP Plan order fails due to any reason, the same order will not be attempted again or will not be clubbed with any future orders irrespective of the sufficient ledger balance.

However your remaining future RSP Plan orders will be active and will be placed for execution on the scheduled dates.

You can place as many RSP Plan request as you want once the facility is activated for your trading account.

The "RSP Plan Request Summary" is a page which displays the details of the RSP Plan requests placed by you. You can view the summary by visiting the RSP Plan Request Summary tab under the RSP Plan link. It provides  the details of your entire RSP Plan with RSP Plan Request Date, Stock Name, Frequency, Quantity or Amount, Total Tenure, Total No. of Orders, No. of Pending orders, Next Trigger Date, Status, Request Placed By and RSP Plan Schedule from first to last order.

Your RSP Plan orders under the RSP Plan Schedule may have four types of Order Status as below:

Pending- When the order is pending to be executed in future.

Unsuccessful – When the defined RSP Plan amount  is less than the price of one share (calculated as per point no. 15)

Triggered – When the order is triggered to the exchange for execution.

Cancelled – When the RSP Plan is cancelled by you.

Yes, you can specify only one stock in an RSP Plan request. Hence if you want to place RSP Plan requests for more than one stock you would be required to place separate RSP Plan request.

Yes, once your RSP Plan facility is activated you can place the request through Call N Trade or through your Dealer as well. You can also place cancellation request through Call N Trade or through your Dealer.

Settlement of RSP Plan transactions would be done in the same manner as cash transactions.

Yes. Stocks bought in your demat account through RSP Plan are at par with the ones bought by you in the cash segment. You can therefore sell/ otherwise deal in such shares at anytime as per your requirement.

Yes, you can place a cancellation request for RSP Plan. Once the cancellation request is placed all pending orders for the RSP Plan will be cancelled.

You can cancel RSP Plan any time online or through Call N Trade or through your Dealer, however if any RSP Plan order placement date is pending for today then you need to place the cancellation request before 08:30 AM.

For example if your next RSP Plan trigger date is 20^th April 2011, then you can place the cancellation request before 08:30 AM on 20^th April 2011.

No, once RSP Plan request is placed you will not be allowed to modify the amount, quantity, tenure or frequency. However, if you wish you can cancel the RSP Plan request and can place a fresh request with your desired combination.

No, there are no charges to avail RSP Plan facility.

However delivery brokerage will be applicable on the transaction value as per your existing brokerage tariff.

No, there is no change in the brokerage rates for RSP Plan transactions. Brokerage rates and applicable charges for RSP Plan transactions would be the same as your cash transactions.

No, there is no charge on RSP cancellation.

To bring in the right spirit of such product, we have specified maximum permissible consecutive RSP order failures due to insufficient funds, beyond such order failures, your account will be charged for every subsequent RSP order rejection due to insufficient funds. Maximum number of permissible consecutive RSP order rejection will depend upon your RSP plan frequency that is explained below:

You can visit your nearest RSL branch / RSL Business Partner or can get in touch with your RM for filling up RSP Plan form.  Your RSP Plan facility will be activated within 3 working days on receipt of the physical completed form duly signed by you.

OR

You can download the RSP Plan from at Reliance Securities website available under Customer Service tab and then submit the completed form duly signed by you at the nearest Branch/ Business Partner or give it to your RM/ Dealer.

You will get an SMS and Email once your RSP Plan facility is activated. You can also check the status with your Dealer or Call & Trade desk.

After the plan is activated, you can place your RSP Plan request online yourself

OR over phone at Call & Trade desk 

OR you can contact your RM/ Dealer for placing the request in any particular stock.

The term ‘Derivative’ indicates that it has no independent value, i.e. its value is entirely ‘derived’ from the value of the underlying asset. The underlying asset can be securities, commodities, bullion, currency, livestock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities.

With Securities Laws (Second Amendment) Act, 1999, Derivatives has been included in the definition of Securities. The term Derivative has been defined in Securities Contracts (Regulations) Act.

Derivative includes -

• A security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security. 
• A contract which derives its value from the prices, or index of prices, of underlying securities

Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. Future contracts are the organized/standardized contracts in terms of quantity, quality (in case of commodities), delivery time and place for settlement on any date in future. The contract expires on a pre-specified date which is called the expiry date of the contract. On expiry, futures can be settled by delivery of the underlying asset or cash. Cash settlement enables the settlement of obligations arising out of the future/option contract in cash.

Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period. The buyer / holder of the option purchases the right from the seller/writer for a consideration which is called ‘Premium’. The seller/writer of an option is obligated to settle the option as per the terms of the contract when the buyer/holder exercises his right. The underlying asset could include securities, an index of prices of securities etc.

Under Securities Contracts (Regulations) Act, 1956 options on securities has been defined as "option in securities" means a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell, securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities.

An Option to buy is called Call option and option to sell is called Put option. Further, if an option that is exercisable on or before the expiry date is called American option and one that is exercisable only on expiry date, is called European option. The price at which the option is to be exercised is called Strike price or Exercise price.

Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date. This request for exercise is submitted to the Exchange, which randomly assigns the exercise request to the sellers of the options, who are obligated to settle the terms of the contract within a specified time frame.

As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash. However, unlike futures cash settlement in option contract entails paying/receiving the difference between the strike price/exercise price and the price of the underlying asset either at the time of expiry of the contract or at the time of exercise / assignment of the option contract.

Futures contract based on an index i.e. the underlying asset is the index, are known as Index Futures Contracts. For example, futures contract on NIFTY Index and SENSEX Index. These contracts derive their value from the value of the underlying index.

Similarly, the options contracts, which are based on some index, are known as Index options contract. However, unlike Index Futures, the buyer of Index Option Contracts has only the right but not the obligation to buy / sell the underlying index on expiry. Index Option Contracts are generally European Style options i.e. they can be exercised / assigned only on the expiry date.

An index in turn derives its value from the prices of securities that constitute the index and is created to represent the sentiments of the market as a whole or of a particular sector of the economy. Indices that represent the whole market are broad based indices and those that represent a particular sector are sectoral indices.

In the beginning futures and options were permitted only on S&P Nifty and BSE Sensex. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria. Derivative contracts may be permitted on an index only if 80% of the index constituents are individually eligible for derivatives trading. However, no single ineligible stock in the index shall have a weightage of more than 5% in the index. The index is required to fulfill the eligibility criteria even after derivatives trading on the index have begun. If the index does not fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued.

By its very nature, index cannot be delivered on maturity of the Index futures or Index option contracts therefore, these contracts are essentially cash settled on Expiry.

Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a separate segment of an existing Stock Exchange. Derivative Exchange/Segment function as a Self-Regulatory Organisation (SRO) and SEBI acts as the oversight regulator. The clearing & settlement of all trades on the Derivative Exchange/Segment would have to be through a Clearing Corporation/House, which is independent in governance and membership from the Derivative Exchange/Segment

With the amendment in the definition of ‘securities’ under SC(R)A (to include derivative contracts in the definition of securities), derivatives trading takes place under the provisions of the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992.

Dr. L.C Gupta Committee constituted by SEBI had laid down the regulatory framework for derivative trading in India. SEBI has also framed suggestive bye-law for Derivative Exchanges/Segments and their Clearing Corporation/House which lays down the provisions for trading and settlement of derivative contracts. The Rules, Bye-laws & Regulations of the Derivative Segment of the Exchanges and their Clearing Corporation/House have to be framed in line with the suggestive Bye-laws. SEBI has also laid the eligibility conditions for Derivative Exchange/Segment and its Clearing Corporation/House. The eligibility conditions have been framed to ensure that Derivative Exchange/Segment & Clearing Corporation/House provide a transparent trading environment, safety & integrity and provide facilities for redressal of investor grievances. Some of the important eligibility conditions are-

-Derivative trading t-take place through an on-line screen based Trading System.

-The Derivatives Exchange/Segment shall have on-line surveillance capability t-monitor positions, prices, and volumes on a real time basis so as to deter market manipulation.

-The Derivatives Exchange/ Segment should have arrangements for dissemination of information about trades, quantities and quotes on a real time basis through atleast two information vending networks, which are easily accessible t-investors across the country.

-The Derivatives Exchange/Segment should have arbitration and investor grievances redressal mechanism operative from all the four areas / regions of the country.

-The Derivatives Exchange/Segment should have satisfactory system of monitoring investor complaints and preventing irregularities in trading.

-The Derivative Segment of the Exchange would have a separate Investor Protection Fund.

-The Clearing Corporation/House shall perform full novation, i.e., the Clearing Corporation/House shall interpose itself between both legs of every trade, becoming the legal counterparty t-both or alternatively should provide an unconditional guarantee for settlement of all trades.

-The Clearing Corporation/House shall have the capacity t-monitor the overall position of Members across both derivatives market and the underlying securities market for those Members who are participating in both.

-The level of initial margin on Index Futures Contracts shall be related t-the risk of loss on the position. The concept of value-at-risk shall be used in calculating required level of initial margins. The initial margins should be large enough t-cover the one-day loss that can be encountered on the position on 99% of the days.

-The Clearing Corporation/House shall establish facilities for electronic funds transfer (EFT) for swift movement of margin payments.

-In the event of a Member defaulting in meeting its liabilities, the Clearing Corporation/House shall transfer client positions and assets t-another solvent Member or close-out all open positions.

-The Clearing Corporation/House should have capabilities t-segregate initial margins deposited by Clearing Members for trades on their own account and on account of his client. The Clearing Corporation/House shall hold the clients’ margin money in trust for the client purposes only and should not allow its diversion for any other purpose.

-The Clearing Corporation/House shall have a separate Trade Guarantee Fund for the trades executed on Derivative Exchange / Segment.

Presently, SEBI has permitted Derivative Trading on the Derivative Segment of BSE and the F&O Segment of NSE

MIS stands for “Margin Intraday Square-off”. As the name states, it is an intraday square off product.

Max Multiplier is a variant of our Margin intraday square-off (MIS) product

It is a two leg order where client places buy/sell order along with corresponding stop loss order.

Positions taken under Max Multiplier have to be squared-off (either by customer or through stop loss hit) before 3:10 PM; else RSL will square-off the positions at market price.

Clients can take leverage as per their risk appetite.  In this product client can take maximum exposure up to 33.33 times in cash market and upto 100 times in Nifty Futures.

• Max Multiplier is a two leg order where client places buy/sell order along with corresponding Stop Loss order. Client has to input the trigger price for the second leg in the same order.
  
  
•  First leg (buy / sell) is placed at market.
  
  
•  Second leg is a Stop loss market order. It remains pending till trigger price is not reached. Once price reaches the trigger price, the order becomes active & executed as market order. 
  
  
•  Trigger Price: Client has to enter the trigger price within the range (stop loss range specified by RSL) which is displayed on the screen. For example if scrip is trading at Rs. 100 & range is specified as 3%, i.e. client can specify any price between 97 to 100 as trigger price.
  
  
•  Once the first leg is executed, second leg (stop loss order) cannot be cancelled. It can only be exited from the order book. Exiting means placing a market order.  
  
  
•  Cover order can only be cancelled till such time first leg is not executed. In a very rare scenario, If the first leg is not executed the order book will display the status as “Open” for both the orders.
  
  
•  Once the first leg is executed, order book will display status as “Completed” for first leg & “trigger pending” for second leg.

Once the first leg is executed, Stop Loss order can be modified till such time it doesn’t reaches the trigger price. If you modify the stop loss order, margin requirement will be recalculated & blocked accordingly.

If first leg of the order is traded/executed then Stop Loss order CANNOT be cancelled. However Stop Loss can be converted to market order.

If first leg of the order is NOT traded/executed and goes into pending orders, then Stop Loss order alone CANNOT be cancelled.

If first leg of the order (which is not yet traded/executed) is cancelled by the client then Stop Loss order will be cancelled by the system automatically. 

INSTA EXPRESS / NEST TRADER: To place a cover order, user needs to select buy cover order entry / sell cover order entry from the Orders & trades menu. This includes dealers and clients using EXE version

Online (INSTA PLUS): To place a cover order, user needs to select CO from product code drop down.

In Exe version, cover order can be entered through “Orders and Trade” option.

In Browser/ internet version it can be entered by selecting "CO" from product dropdown.

Cover order can be placed by client in CASH segment of NSE (Scrip basket defined by RSL) & for 3 Index futures “NIFTY”, “MINIFTY” and “BANKNIFTY”.

Stop Loss Range is specified by RSL at scrip level & varies from scrip to scrip.

Margin requirement is calculated on the basis of difference between LTP (while placing the order) & the trigger price specified.

X multiple (Multiple will be defined by RSL) of such difference will be blocked as margin.

Example:

RIL is trading at Rs. 750. RSL has specified the Stop Loss Range as 4% & Multiple as 2.

Client places a cover order to buy Reliance while specifying the trigger for the second leg as Rs. 730.

Margin Blocking: Difference between LTP & trigger price (750 – 730) is Rs.20. Margin will be blocked as 2 times of Rs. 20 which comes as Rs. 40.

In percentage terms margin is blocked as 5.33% resulting in to an exposure of approx 18.73 times.

Please Note: RSL has specified the Minimum margin to be blocked for cover order in case user enters a trigger price which is less than the minimum stop loss percentage specified by RSL

Yes, client can take exposure against collateral.

No.  Client would not be charged for this facility except for brokerage and other levies as applicable on client trades.

NO. Positions taken under cover order cannot be converted to any other product.

Orders can be placed any time prior to 3:10 pm

TO start with effect from 11th Nov 2011 there are 226 scrips in cash segment and 3 current month futures contract (Nifty, Mini Nifty, Bank Nifty) are available for trading in CO. This list is may be changed by RSL due to market volatility without any prior notice

Yes, Reliance Securities can exclude scrip from time to time and may increase margin requirements for certain scrip as deemed fit by its risk management team for uneven market conditions. This facility may be disabled any time by RSL due to Volatile market conditions on any given day of trading.

Yes, if market is very volatile, Risk management may take this action.

Yes, such customer can buy / sell stock and Index Futures in MIS Product. However such position should be squared-off ebfore 3:20 PM 

Yes, such customer can trade in stock or index futures/options in “NRML” product. However normal margin will be levied as specified by exchange.

Cover order is allowed to all customers of RSL which includes Direct as well as Franchisee customers.

Yes, this facility will be offered to all new customers by default. There is no endorsement required for this.

“RMax Plan” is a subscription plan, where you pay subscription amount for a plan and enjoy the discounted brokerage rates during the tenure of the plan.

Reliance Securities Limited (RSL) “RMax” offers various plans which vary in terms of brokerage rates and subscription amount. Based on your trading profile you can choose from various plan options available.

a.     Subscription Amount: To buy an RMax PLAN you have to pay the subscription amount and the Brokerage applicable (including service tax thereon) on your day to day trades will be adjusted from the amount paid by you towards subscription of RMax PLAN.

b.     Renewal: You would be required to renew your RMax Plan either on expiry of your plan tenure or on exhaustion of subscription amount, whichever happens earlier.

c.     Grace period: If your RMax Plan subscription amount exhausts before the tenure, you will be given a 30 days grace period. During this grace period, you will be charged the same brokerage rate as applicable to your RMax Plan.

d.     Default brokerage: On expiry of your plan tenure or on expiry of 30 days grace period (after the exhaustion of RMax Plan subscription amount) whichever happens earlier, then you will be automatically shifted to a predefined default brokerage rate.

All clients of Reliance Securities Ltd. (RSL) except NRI clients can avail RMax Plan.

RMax Plan offers you following benefits which are not available in normal percentage brokerage scheme:-

a.     Low brokerage without volume commitment: It offers you low brokerage without any commitment towards volume.

b.     Flexibility to upgrade plan as per change in trading profile: Reliance Securities “RMax Plan” allows you the flexibility to upgrade your plan anytime during the plan tenure. If you foresee any change in your trading profile, you can shift from lower subscription amount plan to higher subscription amount plan. The full subscription amount for the New RMax PLAN subscription will be debited from your common ledger at the time of placing request and any balance left in existing RMax PLAN subscription amount will be credited back to your common ledger at end of the day.

c.     No penalty on up-gradation in plan: Shifting from lower subscription amount RMax Plan to higher subscription amount RMax Plan is allowed. No penalty is charged for such movement.

d.     Refund of subscription amount balance at maturity of Plan: If any balance is left in your RMax Plan Subscription amount at the end of plan tenure, the same will be credited back to your Common Ledger.

e.     Grace period: If your RMax Plan subscription amount exhausts before the tenure, you will be given a 30 days grace period. During this grace period, you will be charged the same brokerage rate as applicable to your RMax Plan.

Online – Logging in to our trading portal

An RMax Plan subscription request can be placed online by log-in to your trading account. Based on your trading profile, you can select from various plans available and your ledger will be debited for the RMax Plan subscription amount. Accordingly RMax Plan will be activated in your account and brokerage rate of the selected RMax Plan will be applicable from next trading day onwards.

Yes. You can cancel your RMax Plan subscription on the same day of registration by placing request for cancellation before the end of the EOD processing. After EOD you are required to go through the Exit process as mentioned below.

In case you want to exit from RMax Plan before the expiry of Plan tenure and shift to normal percentage brokerage Plan or you want to close your account with RSL, you are required to give a request to RSL to that effect. Any balance left in subscription amount of existing RMax Plan will be credited back to your common ledger after charging applicable foreclosure charges.

The foreclosure charges are applicable as follows:-

·          Exit request received in first year of RMax Plan subscription – foreclosure charges will be levied at 20% of balance in RMax Plan subscription amount.

·          Exit request received in second year of RMax Plan subscription – foreclosure charges will be levied at 10% of balance in RMax Plan subscription amount.

·          Exit request received in third year of RMax Plan subscription – foreclosure charges will be levied at 5% of balance in RMax Plan subscription amount.

Upon receipt of a valid exit request from you, the balance in the RMax Plan, after charging the applicable foreclosure charges, will be credited to your common ledger within 2 working days. Accordingly RMax Plan will be closed and you will be automatically shifted to a predefined default brokerage rate from next trading day. You may opt for another brokerage Plan then available.  

No. Your request will not be accepted in case your ledger doesn’t have sufficient clear funds.

Once you have placed an RMax Plan subscription request successfully, your RMax Plan will be activated from next trading day onwards.

Once the RMax Plan is activated, brokerage applicable on your day to day trades along with service tax will be adjusted from the RMax Plan subscription amount paid by you. All other statutory and regulatory levies will be adjusted from your Common Ledger.

No, there are no extra / additional/ hidden charges for the RMax Plan. All your trades will be charged with the Applicable RMax Plan brokerage rate along with the Service tax and other statutory and regulatory levies as applicable.

If you do not renew your plan within these 30 days, you will be automatically shifted to a predefined default brokerage rate after the 30 days grace period is over.

 If your plan tenure expires before the 30 days grace period is over, you will be automatically shifted to a predefined default brokerage rate after expiry of your plan tenure.

 E.g.: You have taken a 3 year RMax Plan on 1st of July 2011.

Your plan is valid till 30th June 2014.

If RMax Plan subscription amount is fully utilized on 15th June 2014, hence according to grace period feature you shall be charged as per brokerage rate applicable to your RMax Plan for next 30 days. However, as your plan is expiring on 30th June, you will be shifted to default brokerage rate on 30th June 2014.

If you foresee any change in your trading profile, you can shift (UPGRADE) from lower subscription amount to higher subscription amount. Your new RMax Plan will be activated and existing RMax Plan will be deactivated from next trading day onwards. Full subscription amount required for the new RMax Plan will be debited from your Common Ledger immediately on placing of request and any balance left in your existing RMax Plan subscription amount will be credited back to your Common Ledger at end of the day

If you wish to shift (DEGRADE) from higher subscription amount to lower subscription amount, you need to give exit request in writing to RSL for existing RMax Plan and subscribe a new RMax Plan. Any balance left in existing RMax Plan subscription amount will be refunded after charging applicable foreclosure charges.

The foreclosure charges are applicable as follows:-

·          Exit request received in first year of RMax Plan subscription – foreclosure charges will be levied at 20% of balance in RMax Plan subscription amount.

·          Exit request received in second year of RMax Plan subscription – foreclosure charges will be levied at 10% of balance in RMax Plan subscription amount.

·          Exit request received in third year of RMax Plan subscription – foreclosure charges will be levied at 5% of balance in RMax Plan subscription amount.

Upon receipt of a valid exit request from you, the balance in the RMax Plan, after charging the applicable foreclosure charges, will be credited to your common ledger within 2 working days. Accordingly RMax Plan will be closed and you will be automatically shifted to a predefined default brokerage rate from next trading day. You may opt for another brokerage Plan then available.  

A RMax Plan Statement has been provided for this purpose. You can view your RMax Plan statement by log-in to your account. This statement will show you the daily amount adjusted form your RMax plan subscription amount on account of brokerage and Service tax.

 Yes, you can shift your plan from percentage brokerage to RMax plan. You need to Login to your online trading account and chose an RMax plan which suits your trading profile.

Yes, you can shift your plan from Limit card to RMax plan. You need to Login to your online trading account and choose an RMax plan which suits your trading profile.

No. Once you are shifted to RMax Plan you cannot shift back to limit card.

Yes, you will get the refund of last limit card amount which is in proportion to unutilized turnover (of the last limit card) provided your limit card has not expired. Any unutilized turnover balance carried forward to the new limit card assigned will not be considered for refund.   If client does such shift before 25^th of the month, refund amount will be credited back to his common ledger in first week of next month.

Initial Public Offering, IPO, is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.

Primarily, issues can be classified as a Public, Rights or preferential
issues (also known as private placements). While public and rights issues involve a detailed procedure, private placements or preferential issues are relatively simpler. The classification of issues is illustrated below:Public issues can be further classified into Initial Public offerings andfurther public offerings. In a public offering, the issuer makes an offer fornew investors to enter its shareholding family. The issuer company makes detailed disclosures as per the DIP guidelines in its offerdocument and offers it for subscription.

The significant features are illustrated below:

Issues
Public Preferential Rights
Initial Public Offering Further Public Offering
Fresh Issue Offer for sale Fresh Issue Offer for sale

Initial Public Offering (IPO) is when an unlisted company makes either a
fresh issue of securities or an offer for sale of its existing securities or
both for the first time to the public. This paves way for listing and trading
of the issuer’s securities.

A follow on public offering (FPO) is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.

Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements.

A preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital. The issuer company has to comply with the Companies Act and the requirements contained in Chapter pertaining to preferential allotment in SEBI (DIP)

SEBI has laid down eligibility norms for entities accessing the primary market through public issues. There is no eligibility norm for a listed compaNy making a rights issue as it is an offer made to the existing shareholders who are expected to know their company. The main entry norms for companies making a public issue (IPO or FPO) are summarized as under:

Entry Norm I (EN I): The company shall meet the following
requirements:
(a) Net Tangible Assets of at least Rs. 3 crores for 3 full years.
(b) Distributable profits in atleast three years
(c) Net worth of at least Rs. 1 crore in three years
(d) If change in name, atleast 50% revenue for preceding 1 year should be from the new activity.
(e) The issue size does not exceed 5 times the pre- issue net worth
To provide sufficient flexibility and also to ensure that genuine companies do not suffer on account of rigidity of the parameters, SEBI has provided two other alternative routes to company not satisfying any of the above conditions, for accessing the primary Market, as under:

Entry Norm II (EN II):
(a) Issue shall be through book building route, with at least 50% to be mandatory allotted to the Qualified Institutional Buyers (QIBs).
(b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a compulsory market-making for at least 2 years
OR
Entry Norm III (EN III):
(a) The “project” is appraised and participated to the extent of 15% by FIs/Scheduled Commercial Banks of which at least 10% comes from the appraiser(s).
(b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a compulsory market-making for at least 2 years.
In addition to satisfying the aforesaid eligibility norms, the company shall also satisfy the criteria of having at least 1000 prospective allotees in its issue

Yes, SEBI (DIP) guidelines have provided certain exemptions from the eligibility norms. The following are eligible for exemption from entry norms.
(a) Private Sector Banks
(b) Public sector banks
(c) An infrastructure company whose project has been appraised by a PFI or IDFC or IL&FS or a bank which was earlier a PFI and not less than 5% of the project cost is financed by any of these institutions.
(d) Rights issue by a listed company

Any company making a public issue or a listed company making a rights issue of value of more than Rs 50 lakhs is required to file a draft offer document with SEBI for its observations. The validity period of SEBI’s observation letter is three months only i.e the company has to open its issue within three months period.

A Follow on Public Offering, FPO, is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.

It’s an issue where issuing company defines single price per share. After subscription, company decides the basis of allotment depending upon under/over subscription. On this basis an applicant may or may not get allotment of shares.

It’s an issue where issuing company defines a price range i.e floor (lower) price and Cap (Upper) price. After subscription, company decides the basis of allotment depending upon under/over subscription. On this basis an applicant may or may not get allotment of shares.

At Reliance Money, investing in IPOs hassle-free i.e. without going through the tedious process of filling the application form, signing cheque and finding location for submitting form. All you need to do is fill in the requisite details in the online screens by selecting IPO page of the main trading menu and then select desired issue. Required paperwork will be done by us for you on the basis of the information provided by you.

In Book building issue, the issuer is required to indicate either the price band or a floor price in the red herring prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called “Cut Off Price”. Only retail individual investors have an option of applying at Cut Off Price.

‘Retail Individual Investor’ means an investor who applies or bids for securities of or for a value of not more than Rs.1,00,000/-

Yes you can view your transactions by clicking IPO Order Book link on main menu. You need to give the date range and all transactions for specified date range will be displayed.

Once order is successfully placed, you cannot modify your transaction.

You will receive an email from Reliance Securities for the status of your application.

You will receive an email from Reliance Securities about allotment of shares. Alternatively you can also check up your demat account balance with your Depositary Participant.

Collateral value will be reflected in the “Limits report” under the “Positions” menu available on the Trading portal, Insta Plus. This limit will be shown as “Collateral Value”.

Clients can take intraday positions in the cash segment (MIS) using the collateral value as margin. Clients can also take Futures and Options sell positions using the collateral value as margin.

This facility is activated for all Reliance Securities Limited (RSL) customers except NRI.

Delayed payment Charges (DPC) will be levied on debits arising out of positions taken against collateral.

No action is required from client side. System automatically calculates the collateral value for all the eligible scrips lying in client’s depository account (after applying haircut) & allows the client to take exposure against collateral.

No. RSL will decide from time to time the list of stocks that will be available as collateral.

Collateral value will be reflected in the “Limits report” under the “Positions” menu available on the Trading portal, Insta Plus. This limit will be shown as “Collateral Value”.

Collateral value of an eligible stock lying in the depository account will be calculated as (Quantity* Last Traded Price)*Applicable Haircut Percentage. The haircut % for each stock will be decided by the company (Ranging between 20% and 60%), applicable from time to time. For example if client has 100 shares of Reliance Capital in his depository account then the collateral value will be calculated as follows:
Market value of shares = (last traded price x quantity) Rs.1000 * 100 = Rs. 1,00,000
Applicable hair cut for Reliance Capital scrip = 20%
Collateral value given against Reliance Capital stock = [100000-(20% x 100000)]= Rs.80,000

No, MTM Loss will not be adjusted against these limits. But MTM Loss will get reduced from balance available limits.

If position taken by client against collateral value as margin is running in loss, such positions can be liquidated by RSL if available margin falls below minimum margin requirement. This liquidation of position by RSL may result in realized loss for client.

If client ledger doesn’t have the sufficient cash balance to cover for that loss, his collateral value can also be liquidated to meet the shortfall. RSL also reserves its right to sell the other shares of the client in case the shortfall is not met by liquidation of collateral, as mentioned above.

Stocks will continue to remain in clients beneficiary account and hence clients will get the benefits in their name.

If client has taken position in derivatives & there is a margin short fall at end of trading hours, then auto pledge is created on the scrips (lying in client depository account) eligible to be marked as collateral to the extent of margin short-fall.

In case of pledge stocks, any off market transfer given by clients on such pledged shares are likely to be rejected due to marking of pledge, unless unpledged.

A Mutual Fund is a pool of money collected from investors (individual and corporate) with common objectives which is invested in equity shares, Government securities, Bonds, Call money markets etc. The investment manager invests the money collected into assets that are defined by the stated objective of the scheme.

For retail investors who do not have the time and expertise to analyze and invest in stocks and bonds, mutual funds offer an excellent investment alternative. Mentioned below are a few benefits of investing in Mutual Funds: Professional Investment Management A team of professional fund managers manage the investments on behalf of the investors. Being institutions with good bargaining power in markets, mutual funds have access to crucial corporate information which individual investors cannot access Diversification Mutual funds diversify the risk of the investor by investing in a basket of assets Low Cost A mutual fund enables you to participate in a diversified portfolio for as low an amount as Rs.5000 . Transparency You can track the investments that have been made on your behalf to know the sectors/scrips into which your money has been invested.

NAV is the net asset value of the scheme. Simply put it reflects what the unit held by an investor is worth at current market prices.

You may invest in Mutual Funds through RSL. Our relationship managers can help you in choosing a Mutual Fund that meets your needs.

Generally there are 3 broad categories that a Mutual Fund offers
• A dividend plan entails a regular payment of dividend to the investors.
• A reinvestment plan where these dividends are reinvested in the scheme itself.
• A growth plan is one where no dividends are declared and the investor only gains through capital appreciation in the NAV of the fund.

A systematic investment plan is one where an investor contributes a fixed amount at specific intervals of time and at the prevailing NAV the units are credited to his account.

A systematic investment plan (SIP) offers 2 major benefits to an investor:
• It avoids lump sum investment at one point of time
• In a scenario of falling prices, it reduces your overall cost of acquisition by a process of rupee-cost averaging. This means that at lower prices you end up getting more units for the same investment.

ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for bulk collection of amounts towards telephone / electricity / water dues, tax collections, loan installment repayments, periodic investments in mutual funds, etc.

Direct Debit is similar to the ECS facility however the transactions are not routed through the Reserve Bank of India.

Hence this facility can be utilized for location wherein RBI does not have ECS facility.

Yes there are 87 locations and approx 530 banks offering such ECS facility as per list attached below

Yes as per RSL tie-up there are 8 banks who offer such Direct Debit facility as below in almost all locations, except few branches that are not equipped with such facility.

If you sign up ECS mandate then you do NOT need to track the dates of your investment and accordingly transfer the fund to your trading account every time. Once you sign up ECS mandate then your account will be debited on the given dates for the amount defined by you.

You do not need to track and transfer fund every month for your regular investment or write a cheque to fund your trading account. The defined amount will be debited from your account on the given date and you do not need to keep a lump sum amount in your trading account, hence you will keep earning interest on your saving account balance as the fund will remain in your bank account.

Once you sign up ECS / Direct Debit mandate, the valid and successful ECS / DD registration form will be sent to your bank for authorization by RSL thru our processing vendor.

Your bank will authorize the ECS / Direct Debit form after verification of your signature and details with your bank

There after as per transaction dates mentioned on the form. RSL will send transaction file to processing vendor 10 days prior to your ECS date

On Transaction date, your bank account will be debited for the defined amount.

Such debits will go on up the period of start date and end date mentioned in the form.

If there are insufficient funds in your bank account on debit date then such ECS / DD will bounce and you will be levied with charges by Bank and RSL both as per the charges prevailing from time to time.

Yes there is a “RSL ECS debit mandate form” to be filled you just need to attach a cancel cheque of the bank account on which you want to avail the ECS/ Direct Debit facility.

Download Form

Note: If your name is not printed on the cheque, then you need to write your name on the reverse of the cheque and have to sign on the reverse of the cheque.

No. There is a maximum ECS value limit defined city wise however it is not more than Rs 100,000. You can specify the upper amount in ECS/ Direct Debit instruction and accordingly your account will be debited upto that amount only.

You need to specify the ECS / Direct Debit start and end date at the time of filling up the form. The instruction will remain valid only till the end date specified by you. E.g.. from 1^st April 2009 to 31^st March 2012

Yes, following are the chares for availing the ECS/ Direct Debit facility and the same will be debited to your trading ledger account at the end of every month.

Yes, there will be charges for ECS/ Direct debit failure. Please refer above charges details.

1. Yes, you can withdraw the ECS mandate whenever you desire. If you want to stop ECS then you need to intimate RSL before 30 working days of your ECS debit date by filling in the attached cancellation request form and submit it to RSL branch.

2. you can withdraw the ECS / DD by writing it to your bank in their format to stop such ECS / DD mandates

Mobile based funds transfer is a facility using which you can transfer funds from your bank account to your Reliance Securities Limited (RSL) or Reliance Commodities Limited (RCL) trading account instantly through the payment application downloaded on your handset.

To avail this service all you require is a Java MIDP 2.0 enabled phone to install the atom application.

You need to have GPRS activated on your phone i.e. internet facility should be active on the mobile.

Yes, you have to download an atom application on your phone to use this facility

It works on BlackBerry, Nokia, Sony Ericsson, Reliance Nokia, Reliance BlackBerry and Androids.

While downloading the application, you will get an option to select the mobile software for e.g.; Reliance Nokia jar, Reliance Nokia jad, BlackBerry Mobile, Reliance BlackBerry, Android Mobile etc. You need to select your mobile operating system starting with Reliance, e.g. Reliance BlackBerry.

For Nokia phones user needs to use Nokia.jar download

To avail this facility, firstly you should register your active mobile number with RSL or RCL during the KYC registration.

The same number should be registered in your bank records. You also have to do a onetime registration with your bank to activate this facility.

Kindly type the WAP link, http://203.114.240.71/resc.wml on your mobile browser. Click on link and it will give the multiple choices to select the type of mobile that you are using and download the suitable application.

Once you click on the link mentioned above, the mobile application download process starts. You need to follow the steps as guided by the application till you get the confirmatory message as ‘Welcome! You have successfully registered for the Mobile Application’.

A Reliance icon will be stored on your phone on the successful download of the application.

You will be asked to create a 4 to 6 character PIN for mobile payment. Please remember the PIN, as this would be required whenever you use this application for fund transfer.

At the time of generating the PIN number you will be asked to set a secret question and answer. In case you forget your PIN, you can use the same to generate a new one.

If you have already registered with your bank to avail such a facility, then you can transfer funds immediately. If not, you will have to register with your bank to start using this facility. The registration process varies from bank to bank, for e.g. Axis Bank account holder can activate this facility through Axis Bank ATM.

You need to check for the process from your bank. You can register with your bank either before or after downloading the application. Currently the banks available under this facility are Axis Bank, Corporation Bank and BOI.

No, the facility does not work on a landline number. It has to be a mobile number.

You need to fill up a change request form & submit the same to your nearest RSL/RCL branch to update such details in our records.

Alternately you may change the number registered with your bank.

When you open the application you will get your trading account details, select your client code and then you have to select ‘Reliance Securities’ or ‘Reliance Commodities’(commodities will appear only if you have a commodities account). Then enter the amount which you want to transfer and if the transaction is authorized by your bank then your trading account will be credited instantly.

If you have multiple trading accounts on the same number, then all your account numbers will be displayed and you will have an option to select any one trading account where in you want to transfer the funds.

If you have multiple banks linked to your trading account, then the details of all the banks will be displayed and you will be given an option to select any one of the bank account through which you want to transfer funds, provided these banks are enabled for fund transfer through mobile.

Not all banks facilitate this; you can transfer funds through the mobile application. Currently the banks available under this facility are Axis Bank, Corporation Bank and BOI. Incase of any other banks this message will be displayed - ‘No banks are registered with us which are mapped to your account.’

If the transaction is successful then a transaction receipt will be generated and stored in the phone.

In case the transaction is not successful due rejection from bank, then a message will be displayed as ‘Sorry currently not able to validate your account for the bank you have selected.’

If the transaction is successful, then your trading account will be credited instantly.

Yes, you will be charged Rs 10 per successful transaction + other statutory levies as applicable which will be debited to your trading account at periodic intervals

Yes, there is a minimum limit of Rs 50 and a maximum limit of 50000 as per RBI Guidelines.

You can use the application only for fund transfer to RSL/RCL trading account(s).

It varies from bank to bank. However the debit card PIN is compulsory across all banks to validate the transaction.

Apart from the PIN, the bank may ask for any other Information related to your debit card / account number etc. The Atom PIN generated during the registration is also required during transactions as part of the validation process

The debit card number is also required during transactions for some banks.

IVR (Interactive Voice Recording) is a pre-recorded voice interactive service where by using the voice/mobile keys, one can enter to get the required information / inquiry OR do a funds transfers to other bank / trading accounts.

IVR based fund transfer facility is a facility where client can transfer funds from his bank account to trading account of RSL using IVR by calling on our IVR Numbers as below through the registered mobile number with RSL.

Post registration with bank, one has to dial any one of the above number and follow the steps spelled out during the IVR call and validate the transaction details.

Same mobile number should be registered with Reliance Securities Ltd and your bank. The bank account mapped to the Client with Reliance Securities should be the same as one for which “Call and Pay “registration is done else validation will fail and funds will not be transferred.

Compulsorily, it has to be a mobile number only. Banks do not register landline numbers for Call and Pay.

The 1^st step would be to register the mobile number for “Call and Pay” with the your Bank. The mobile number registered with bank has to be registered with Reliance Securities for the transaction to flow. The bank details and the mobile number should also be part of your KYC details with Reliance Securities Ltd.

Every bank has unique registration process. Some banks may take physical documents as one time registration formality. Some banks allow this facility activation thru their ATM’s.

You need to fill and change request form & submit the form to RSL branch to change such details with RSL records.

OR you may change your mobile number recorded with your bank account by approaching your bank with such request of change.

It is an one time registration activity, which you have to register with your bank.

To activate such facility, one should approach bank helpdesk, Branch, Internet, ATM.

Every bank has unique registration process. Some banks may take physical documents as one time registration formality.
Some banks allow this facility activation thru their ATM’s.

For example; In case of Axis bank you can register for IVR funds transfer facility at Axis Bank’s ATM by choosing the option REGISTRATIONS, under this there is an option called CALL AND PAY, one needs to register here.

Post registering within 5 minutes there will be a call from Axis Bank which will prompt the user to generate a six digit PIN . Post this the client can start transacting using IVR to transfer funds to Reliance Securities Ltd.

When you call up on IVR from the registered phone number, system verifies your mobile number and if the mobile number is same then you are given the option to transfer the fund from your bank account to your RSL trading account. Bank account validation is also done, hence the KYC bank is to be opted for this transaction.

It varies from bank to bank. However Pin number is compulsory across banks to validate transaction. Over and above this banks may ask for any other Information related to your debit card / account number etc.

Ideally this scenario should NOT come because banks expect your own mobile number only to be registered with them for IVR banking.

If you have multiple bank accounts linked to your trading account, then IVR gives you an option to select any one of the bank account which is offering this facility for fund transfer. This scenario becomes relevant when more banks have been put on live. Funds will only get transferred only if same mobile number is registered with your Bank account.

Not all banks facilitate this, but you can transfer fund through IVR if your bank has tie-up with RSL processing Vendor.

Currently we have activated with below mentioned banks only
1) Axis Bank (other banks in progress of implementation )

If you have an account linked to your trading account which does not have a tie-up with Processing Vendor for payments, then you will be given an error message post verifying your client ID to the effect that your bank does not support this facility. Whereas in case the bank supports the transaction but the client has not registered for it with the bank then IVR will play the message as ‘Currently there are no options available for you to transact using RSL IVR pay’ gateway

If the transaction is successful then IVR plays the confirmation message for successful transaction.

In case the transaction is not successful due to rejection from bank, then IVR plays the message as ‘Sorry currently not able to validate your account for the bank you have selected’
For every completed transaction, there is always a confirmation message or intimation of rejection.

If the transaction is successful, then your trading account will be credited instantly.

Yes, you will be charged Rs 10/- per successful transaction which will be debited to your trading account.
*Taxes extra as applicable

Yes, there is a minimum limit of Rs 50 per transaction; however the maximum limit is s. 50000/- per day.

A max of Rs. 50,000/- can be transferred in a day
In axis we can do transactions in excess of 50,000 per day as long as single transactions are within this limit.

Technically yes, but you pay ISD roaming charges.

Debit card based Funds transfer is a facility where you can transfer funds using any VISA debit card irrespective of the issuing bank.

The VISA debit card transfer is independent of the issuing bank. Once a debit card is registered, irrespective of the issuing bank the client will be able to transfer funds, i.e. all VISA debit cards are allowed

From a regulatory perspective we are also registering the bank account to which the card is linked. The transfer is through secure VISA network.

ALL VISA debit card holders can avail this facility.

VISA debit card details and the bank account to which the same is linked is to be registered as a onetime activity
The client also gives details of the bank account to which the card is linked and also registers same with RSL in case it is not registered earlier.
Details of the front of the card only is captured viz. card number, card holder name as it appears on the card.

The 1^st step would be to register the VISA debit card number with RSL by filling the form available in download section Fill in the form and submit it to RSL branch for registration with RSL along with the requisite supporting

If you have filled the VISA debit card form after account opening with RSL, then you will get an email from RSL on registration of such account of VISA debit card.
On the next day of Registration, you will get the dropdown enabled in your login for trading.
If you have filled the form during account opening with RSL then such bank account details will be mapped with RSL trading account and you will get the dropdown enabled in your login for trading.

It will take 3 working days time to process the request after the receipt of the form at HO/central processing unit

Once the bank account is registered with RSL, then customer can do the funds transfer online by selecting the “debit card “ option in the Payin menu. On selecting the menu, you will see be able to see the debit card number in the dropdown.

Yes you can register multiple debit cards , maximum up to 3 debit cards.

It similar to an online transfer. Validate the transaction as per the issuing bank process which is normally PIN based some banks may ask further details as provided by banks.

Your limits in trading account will immediately get updated

Your limits in trading account will immediately get updated

As an introductory offer the funds transfer charge is waived off
Later there will be charge of Rs. 30 plus service tax, which is levied by banks/ VISA.

Depends on bank and individual limits within the bank

Regular Stock Purchase Insure (RSP Insure) is a facility which provides you an opportunity to invest systematically and in a disciplined manner in specified stock(s), ETF(s) (Exchange Traded Funds) and MF (Mutual Funds) units through exchange platforms (NSE- MFSS & BSE- StAR MF) with the added benefit of insurance cover.

Under RSP Insure you can place BUY orders for a pre specified amount in stock(s), ETF(s) or MF units of your choice, for a period of 10 years. This means that a onetime selection of RSP Insure will allow Reliance Securities Limited (RSL) to place orders on your behalf on regular intervals.

The unique benefit of RSP Insure is that, in case of the unfortunate demise of an investor during the tenure of the RSP Insure, the insurance cover will take care of the remaining orders.

RSP Insure has a fixed tenure of 10 years.

·         No need to track the market regularly i.e., once an RSP Insure is placed, the selected stock(s)/ETF/MF are purchased on your behalf as per your instruction.

·         Helps bring down the average cost of investment

·         Eliminates the risk of timing the market

·         Helps bring down the average cost of investment

·         Accumulates wealth by investing small amount regularly

·         It provides Life Insurance Cover that helps the registered RSP Insure investor’s family to deal with the financial crisis and stay ahead of uncertainties of life by ensuring that the insurance cover takes care of the unpaid pending investment orders.

·         Helps to complete the planned investments towards your financial goals.

All RSL clients’ upto 50 years of age (based on next birthday) can subscribe for RSP Insure.

There are 2 ways through which a client can avail this facility.

All RSL clients’ upto 50 years of age (based on next birthday) can subscribe for RSP Insure.

1. Physical Request: To avail RSP Insure facility, you need to fill an Application Form, Personal Declaration Form (PD Form) & RSP Insure Nomination Form. You also need to specify the stock you want to invest in and your monthly investment amount. Your RSP Insure will be activated within 7 days and then your first order will be placed as per the nearest investment date out of 7th, 15th, 22nd and 28th.

2. Online: Login to your online trading account & select the Instrument in which you want to invest. Your first order will be placed as per the nearest investment date out of 7th, 15th, 22nd and 28th.

However it is mandatory to submit the physical copy of Personal Declaration form & RSP Insure Nomination Form to the branch.

You will get Email once your RSP Insure facility is activated. You can also check the status online after logging in to your account or with your Dealer or Call N Trade desk.

The Insurance cover will be granted based on the information provided in PD Form.

Once the PD Form is accepted by RLIC, insurance cover will be granted to you effective from next month onwards. You will be charged an “RSP Insure Activation Fee” of Rs. 2500 on acceptance of PD form.

·         The order will be placed on the nearest date out of 7th, 15th, 22nd or 28th after an RSP Insure request is placed.

·         Monthly RSP Insure amount specified by you is invested in stocks of your choice.

·         Insurance cover is subject to acceptance of Personal Declaration Form. The cover will be effective from next month onwards.
Example: If RSP Insure start date is 11/12/2011, assuming PD form is submitted on 12/12/2011 & the same is accepted by RLIC on 18/12/2011. Insurance Cover will be effective from 01/01/2012 onwards.

·         Insurance cover amount will reduce every month. The cover will be calculated as per following formula. Insurance Cover Amount: RSP Insure monthly amount * Pending RSP Installments.

·         In case of the unfortunate demise, insurance cover amount will be paid to the nominee registered by client while submitting the nomination form for RSP-Insure.

·         Insurance cover provided will be terminated in case any of the following event happens:
-  At the end of the RSP Insure tenure, i.e; upon successful execution of all RSP Insure orders as registered or till the client attains 60 years of age whichever is earlier.
-  Failure of to pay 2 consecutive RSP Insure Installments due to non availability of funds
-  Failure of to pay 4 RSP Insure installments during the entire tenure due to non availability of funds.
-  The client cancels all future RSP Installments.
-  Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock.

·         Note: The insurance cover cannot be revived if the same is terminated due to any reason mentioned above.

·         On happening of any of the 4 events, insurance cover will not be provided effective from next month onwards.

·         In case insurance cover is not granted (i.e. rejected), RSP Insure installments will continue to be invested, however insurance cover will not be given. Investor may choose to cancel all future Installments.

No. An RSP Insure Request is merely an authorization given to RSL to place BUY orders in your account as per your instructions; hence funds are not required or used when you place a request. However, it is advisable to maintain funds in the ledger.

Your funds will be used at the time of placing actual RSP Insure orders in the market on a trading day. You can also sign up an ECS mandate for your RSP Insure orders and then the monthly investment amount will be directly debited from your bank account on the specified date.

You need to transfer/deposit the money for RSP Insure activation fees, other than regular stock purchase transactions.

No, your ledger balance will not be blocked. Your funds in ledger will be used at the time of placing actual RSP Insure orders in the market on the specified dates.

For example: if you have an RSP Insure to invest Rs 5000 monthly with the order placement date as 15^th of every month. Then on the 15th of every month your ledger balance will be checked and depending on the availability of Rs 5000 free balance your RSP Insure order will be placed into the market.

No, in case of two consecutive or four separate RSP Order failures due to insufficient ledger balance during the tenure the RSP Insure cover will be terminated. However pending RSP orders will be active and will pushed into the market on scheduled dates.

No, RSP Insure request can be placed only in Cash segment.

No. Once you have placed your RSP Insure requests, RSL will place the RSP Insure buy orders on your behalf as per your RSP Insure schedule for the stock. You need NOT login to your account every time to purchase the shares.

Yes, once your RSP Insure facility is activated, you can place multiple RSP Insure requests online or through CNT/Branch/Franchisee in same or different stocks, however your total RSP Insure Cover amount cannot go above Rs 10 lacs at any point of time.

In case the defined RSP Insure order placement date falls on a trading holiday, then the order will be placed on the subsequent trading day.

All RSP Insure orders will be placed as market orders. Once your RSP Insure order is executed successfully the same will reflect in your RSP Insure Summary page with the traded price.

If you do not have sufficient ledger balance as required to place your RSP Insure order, your order for that date will fail which will be displayed in RSP Insure summary page as failed order. This amount will be carried forward to next month.

You can specify only one stock in an RSP Insure request. Hence if you want to place RSP Insure requests for more than one stock you would be required to place separate RSP Insure requests. Once the PD form is submitted and accepted, there is NO need to submit the PD form again for additional stock selection.

Yes, if you feel that your current stock is not performing well or you want to change the stock for any other reason, you can go to RSP Insure Summary page and can change the stock symbol. Your remaining RSP Insure order will be placed as per the increased amount. But you should ensure the amount of investment is NOT changing.

Yes, you can increase your Monthly RSP Insure Amount. If the stock price goes above the monthly RSP Insure amount, it is suggested that you should increase your Monthly RSP Insure Amount. Your remaining RSP Insure order will be placed as per increased monthly RSP Insure amount.

Your insurance cover will also increase effective from next month onwards, but not exceeding Rs 10 Lac at any point of time.

Yes, once your RSP Insure facility is activated you can place the request through Call N Trade or through your Dealer as well.

Settlement of RSP Insure transactions would be done in the same manner as cash transactions.

Yes. Stocks bought in your demat account through RSP Insure are at par with the ones bought by you in the cash segment. You can therefore sell/ otherwise deal in such shares at anytime as per your requirement.

Once the PD From is Accepted, insurance cover will be granted to you effective from next month onwards. Your account will be charged an “RSP Insure Activation Fee” of Rs. 2500.

Yes, a Certificate of Insurance (COI) will be issued once your insurance cover has been accepted and started.

·         At the end of the RSP Insure tenure, i.e; upon successful execution of all RSP Insure orders as registered or till the client attains 60 years of age whichever is earlier.

·         Failure of 2 consecutive RSP Insure Installments due to non availability of funds.

·         Failure of 4 RSP Insure Installments during the entire tenure due to non availability of funds.

·         In case of Investor cancelling all future RSP Installments.

·         Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock.

The sum assured will be the amount equivalent to sum of all pending RSP Insure orders across all RSP Plans (equities + mutual funds) subject to a maximum of Rs 10 Lac.

For example: If client has an RSP Insure of Rs 5000 (total RSP orders - 10years * 12 months = 120), then after successful execution of the first 3 orders the sum assured applicable to the client will be (Rs 5000 * 117 order = Rs 5, 85,000).
After two years sum assured will be Rs 4, 80,000 (Rs 5000 * 96 (120-24) months)

If you have multiple RSP Insure request, the sum assured will be sum total of all pending orders subject to a maximum of Rs 10 lacs across all RSP Insure request.

In case of claim of Insurance by nominee, claim documents will have to be submitted to the RSL branch. Branch will send such documents to the Head Office (HO). The HO processing team will forward the document to RLIC. RLIC approves the claim. RSL will issue a cheque in favour of Nominee as mentioned in RSP Insure Nomination form. If there is any pending debit in client trading ledger then such amount will be have to be settled before making final payment to Nominee

The beneficiary of the insurance cover can send the required document to RSL for claim settlement along with original COI. RSL will coordinate with the insurance company (Reliance Life Insurance) to help the beneficiary in the settlement of claim.

The insurance can be claimed in case of death of the client after the insurance cover become applicable (i.e. after acceptance of PD form) However insurance cannot be claimed in case death of the client happens due to the following reason:

·         Death due to suicide

·         Death due to pre-existing conditions (No claims are payable for deaths due to sickness, diseases or accident which has occurred prior to the start of the cover).

·         Death during waiting period (No claims are payable for deaths occurring within 90 days of the insurance become applicable except for death due to accident).

·         A proof of age as prescribed by the insurance company
-  Death Certificate

·         Form B – To be certified by Doctor

·         Original Certificate of Insurance

·         Hospitalization / Medical reports

In case of death due to accident, the following additional document will be required:

·         First Information Report (FIR)

·         Post Mortem Report

·        Police Investigation Report

Yes, you can place a cancellation request for RSP Insure. Once the cancellation request is placed all pending orders for the RSP Insure will be cancelled & insurance cover will be terminated effective from next month onwards.

You can cancel RSP Insure any time online or through Call N Trade or through your Dealer, however if any RSP Insure order placement date is pending for today then you need to place the cancellation request before 08:30 AM.

For example if your next RSP Insure trigger date is April 20, 2011, then you can place the cancellation request before 08:30 AM on April 20, 2011.

No you cannot, the tenure is fixed for 10 years.

Yes. Once the PD form is accepted, you will be charged / debited with RSP Insure Activation fee of Rs.2500.
For each of your successfully executed RSP orders traded, brokerage @ 1% will be charged. Other statutory levies will be charged separately.

No there is no charge on cancellation.

Currently there are NO such charges, but if incidences are recurring for clients, then RSL may charge such customer for keeping insufficient funds and unnecessarily activating RSP Insure(s). However, in case of two consecutive or four separate RSP Insure orders failures during the tenure due to insufficient ledger balance, the RSP Insure cover will be terminated.

"Non Resident Indian" means a person who is a citizen of India residing outside India for carrying out employment or on business or vocation.

A citizen of any country (other than a citizen of Bangladesh or Pakistan) is deemed to be a Person of Indian Origin (PIO), if

·         He, at any time, held an Indian passport, or

·         He or either of his parents or any of his grandparents were a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955, or

·         A spouse (not being a citizen of Bangladesh or Pakistan or Sri Lanka) of an Indian citizen or of a person of Indian origin is also deemed to be PIO

Overseas Citizenship of India is not a full citizenship of India and thus, does not amount to dual citizenship or dual nationality.
The Central Indian Government, on application, may register any person as an Overseas Citizen of India if that Person is of Indian Origin and is from a country which allows dual citizenship in some form or the other & has never been a citizen of Pakistan or Bangladesh.

Yes, they can purchase shares of an Indian Company through stock exchanges, under the Portfolio Investment Scheme (buying through the secondary market).

·         NRIs / PIO / OCI can invest in the Indian stock market on repatriable or on non repatriable basis through the Portfolio Investment Scheme (PINS).

·         Different bank and demat accounts need to be maintained for repatriable and non repatriable investments.

The Reserve Bank of India (RBI) oversees the investment positions of NRIs/FIIs in listed Indian companies which are reported by designated banks, on a daily basis. Whenever the total holdings of NRIs/FIIs under the scheme reaches the limit of 2% below the sectoral cap, Reserve Bank issues a notice cautioning the designated banks and its branches to take prior approval from the RBI for any further purchases of shares of the particular Indian company. If the shareholding by NRIs/FIIs reaches the statutory limit, the Reserve Bank places the company in the ban list upon which no NRI can purchase the shares of the company under the Portfolio Investment Scheme.

NRIs are allowed to invest through designated banks (under PINS route) up to 5% of the paid- up capital / paid-up value of each series of equity shares/debentures of listed Indian companies. The overall purchase made by all NRIs cannot exceed 10% or as prescribed by RBI from time to time.

·         NRI should open a Demat Account to hold his shares and open a trading account to execute his buy/sell orders in the stock exchange(s)

·         NRI should open a new bank account (NRE/NRO or both) with designated bank which is approved by RBI for this purpose.

·         Customer should apply for a general approval for investment in Indian Stock Market through his designated bank branch.

NRI’s need not seek permission from the RBI to invest and redeem units in Mutual Funds.

No. NRIs can sell such shares/debentures on the exchange without any approval. However, the bank should be provided with the details regarding date of allotment and cost of acquisition while seeking the credit of sale proceeds to NRE/NRO account.

In order to invest in Equity (secondary market) an NRI would need to open Portfolio Investment Scheme (PINS) linked Non Resident External (NRE) or Non Resident Ordinary (NRO) account. To invest in IPO and Mutual Funds an NRI would need non PINS linked NRE or NRO account. Investments in Futures & Options can only be made through non PINS linked NRO account which also supports investments in IPO and Mutual Funds.

NRIs can only make delivery transactions as per RBI guidelines. Intra-day trading is not allowed for NRIs. Short Selling is not permitted.

NRI should open a new bank account (NRE/NRO or both) with a designated bank which is approved by RBI (Reserve Bank of India) for this purpose.

Non Resident External (NRE) account is a Rupee denominated account meant for NRIs which allows repatriation of funds. This means that the funds can be freely sent to any other country. NRE account can contain funds remitted from abroad, or obtained from another NRE / FCNR account maintained in India. The interest earned on deposits in an NRE account is exempt from tax in the hands of the NRI.

Non Resident Ordinary (NRO) account is a Rupee denominated account which allows repatriation of upto 1 million USD. NRI can repatriate up to USD 1 million, for bonafide purposes, per financial year from balances in NRO Accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties held by NRIs/PIO (Person of Indian Origin) for a period of 10 years. In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period in eligible investments. The interest earned on deposits in an NRO account is taxable in the hands of the NRI as per the applicable income tax slab rates.

Portfolio Investment Scheme (PINS) is a scheme of Reserve Bank of India which allows Non Resident Indians (NRIs) to purchase/sell shares/convertible debentures of Indian companies on Stock Exchanges. For this purpose, the NRI has to apply to a designated bank, approved by RBI which deals in Portfolio Investment Scheme. All sale/purchase transactions will be routed through this designated bank. At the end of the day, your trades are reported to the respective designated bank, which in turn would report the same to RBI.

Any NRI or a PIO wanting to trade or make investments in the Indian Equity Secondary Market must have (only) one PINS account with only one designated bank in India. Please note:

·         Only Non Resident Indians require PINS account

·         PINS account is only for facilitating trades in Indian equity markets and not in foreign markets

·         It is not required for making investments in Mutual Funds/IPOs/Derivatives

There are two types of PINS accounts:

·         NRE PINS account

·         NRO PINS account

For any Indian company the foreign investment into that company cannot cross a certain limit. This limit is different from company to company and sector to sector. These limits have to be monitored under FEMA regulations.

The contract note of the broker should reach PINS department within one working day following the day of transaction for reporting any transaction under PINS.

No. Only the investments made in the secondary markets are to be routed through a PINS account. For other products the investments can be done through direct subscription route.

Yes, funds can be transferred from NRE to NRO account without any restriction.

No, funds cannot be transferred from NRO to NRE account.

If the NRI holding the NRE account returns and becomes a resident of India, the NRE account is converted into a regular resident account.

The repatriation of the sale proceeds, net of taxes, are allowed if the original investments were made out of funds from NRE account or by means of remittance from abroad.

·         NRIs should open a Demat Account with Reliance Securities Ltd. to hold his shares and register with Reliance Securities Ltd. to execute his buy/sell orders on the stock exchange(s)

·         NRIs should open a new bank account (NRE/NRO or both) with a designated bank which is approved by Reserve Bank of India (RBI) for this purpose. Our preferred designated bankers are Yes Bank/ Axis Bank

·         Customer should apply for a general approval for investment in Indian Stock Market through his designated bank branch.

·         NRI Trading Account with Reliance Securities (for Delivery trading on BSE/NSE/MFSS/BSE STAR for Mutual Funds)

·         NRI Demat Account with Reliance Securities. (for Demat Holdings purchased and sold )

·         NRE PINS linked bank account with any one (Yes Bank or Axis Bank) for investing in Equity/ Mutual Fund segment

A brokerage account is the online broking account with Reliance Securities Ltd. which facilitates buying and selling of shares online. Since the brokerage account is only a facilitator account, it does not require any joint holding or nomination. Brokerage account is opened in the name of the sole holder only.

Demat account is a short form of Dematerialized Account. In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place.

NRI needs to open a Demat account with Reliance Securities Ltd.

Client submits a Dematerialisation Request Form (DRF) along with the physical share certificate to Reliance Securities Ltd, who in turn forwards it to the Registrar & Transfer agent for confirmation from the company. After the confirmation is received the client a/c is credited.

A customer will need to open one NRE PINS Account to invest in Equity.

You can link your NRE PINS account to your Reliance Securities Ltd. brokerage account.

A new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account. Trading member also needs to open a new trading account which needs to be uploaded with the new category code.

No, these shares cannot be transferred into NRE Demat Account.

No

As per regulatory guidelines, before crediting sales proceeds it is the responsibility of the Banks and the PINS cell to determine the appropriate Tax for all profits made in equity market transactions and deduct it at source.

Shares held for more than 1 year are long term capital, if the same shares are sold after 1 year from the date of its purchase then there will be no long term capital gain tax applicable.

Shares held less than 1 year are short term capital; if the same shares are sold within 1 year from the date of its purchase then the gains from the transactions would be taxed.

For any TDS to be deducted and money to be remitted to bank account, there are three things which have to be verified.

·         Profits = Selling price – Purchase price

·         Duration of holding (long term or short term) = Selling date – Purchase date

·         Source of fund for purchase i.e. NRE or NRO

Important: TDS is deducted only at the time of crediting sales proceeds.

In case of PINS transactions Bank is responsible for filing the Tax returns of the NRI Investors.

In case the customer already has an NRE/NRO PINS account with Yes Bank or Axis Bank and wants to open a Trading and Demat account with Reliance Securities Ltd., he can do so by filling up the Account Opening Form available in the “Downloads” section of the Reliance securities website (http://www.rsec.co.in/customer-service/download-forms).

The customer can also get in touch with the nearest branch and can ask for a Physical copy of the RSL Account Opening Form

To open Trading & Demat accounts with Reliance Securities, the customer needs to fill, sign up all the above mentioned forms and required Documents & can courier the documents to RSL Central Back office at Chennai:–

Reliance Securities Ltd, No 1/2 Pilliar Kovil Street, MCN Nagar Extension,
Thoraipakkam, Chennai 600 097

NRI Investors can open Bank accounts by visiting the bank website and following there instructions:

Yes Bank - http://www.yesbank.in/index.jsp?navigationUrl=%2FYES+Bank+Repository%2Fen%2FBranch+Banking%2FGlobal+Indian+Banking+-+NRI%2FPortfolio+Investment+Scheme

Axis Bank –

http://www.axisbank.com/nri/others/investments/pis-account/how-to-apply.aspx

The customer can also approach his nearest such bank branch for availing NRI bank account opening forms.

To open a Bank account with RSL recognized banks (Axis Bank / Yes Bank) the customer needs to fill, sign up all the above mentioned forms & can courier the documents to above RSL Central Back office at Chennai

RSL will forward the relevant forms and documents to the Bank. Once the Bank account is opened the Bank will issue a certificate to RSL giving the account number and relevant account details of the customer.

·         NRI Customer will have to close his existing investment NRE and NRO accounts and open new bank accounts with Yes Bank or Axis Bank.

·         Trading/ Demat accounts with Reliance Securities Ltd. can be opened, as per the process described above.

·         The customer would also need to apply to his existing designated bank to issue the necessary 'No Objection' certificate that would give details of the latest status of his portfolio as on the date of the issue. This certificate has to be submitted to new bank where customer is willing to shift his NRE / NRO bank account.

It would take a maximum of 14 days (provided copies of the PAN cards of all the demat holders are supplied) from the date the duly filled-in application is received by our office. This also includes the time required by the Bank to grant the necessary approval under the Portfolio Investment Scheme.

Getting a ‘PAN CARD’ is a simple process that can be done online. Please note that PAN card mailing overseas is allowed to some countries. NRIs wanting to apply for a PAN card from abroad can check the list of countries given below.

·         Document that has your overseas address on it. The best document to use is your bank statement showing your overseas address.

·         Copy of passport.

·         2 Color photograph (size 3.5 cm x 2.5 cm)

·         The fee for processing PAN application is Rs.96 (Rs. 85.00 + 12.36% service tax) If communication address is of India

·         The fee for processing PAN application is Rs.962.00[(Application fee Rs.85.00 + Dispatch Charges Rs.771.00) + 12.36% service tax]. If communication address is of outside India

·         Demand draft and cheque should be drawn in favour of 'NSDL - PAN'.

·         Demand draft shall be payable at Mumbai and the acknowledgment number should be mentioned on the reverse of the demand draft

·         Payment by Credit Card / Debit Card / Net Banking can be made by / for Self, immediate family members (parents, spouse, children)

·         Log on to ONLINE PAN CARD website: https://tin.tin.nsdl.com/pan/form49AA.html

·         Scroll down to the bottom of the page where you see: Apply for a new PAN Card' and select Individual from the drop down menu bar.

·         Application for Pan Card Form49AA will open.

·         Fill in the form. Read Guidelines on filling form and Instructions on filling form if you wish. When filling in the address make sure it is the same overseas address that is shown on your address proof.

·         Once the form is filled, review it to ensure everything is correctly filled and click submit.

·         An acknowledgement will appear on the screen if form was submitted correctly.

·         Print out at least two copies of the acknowledgement. (One copy is for your record)

·         Paste your 2 photographs on one of the printouts of acknowledgement and sign in black ink.

·         Demand draft shall be payable at Mumbai and the acknowledgment number should be mentioned on the reverse of the demand draft

·         Sign on all pages of the photocopies of your passport and your bank statement.

·         (Black pages of passport are not required to be copied)
Mail all documents to NSDL, PAN unit at Mumbai.

·         You can track the status of your application by using your acknowledgement number.

R-Model Portfolio is a tool as well as a service which combines the power of Securities Trading and Portfolio Allocation to invest in a portfolio of stocks created by the Reliance Securities Research Team.

PORTFOLIO CREATION: The Reliance Securities Research Team will suggest a carefully selected basket of stocks with the objective of generating returns above the benchmark, over a specific investment horizon.
PORTFOLIO INVESTMENT: Reliance Securities customers will be able to select their desired portfolio based on their risk appetite. The investor also has the option of aligning his existing demat holdings to the selected portfolio.
PORTFOLIO REVIEW: The Reliance Securities Research Team will conduct a periodic review (2nd month of every quarter) of the portfolio and will remove or reduce the quantity of underperforming stocks. All clients will receive email notifications whenever a portfolio review is done.

The R-Model Portfolio feature essentially consists of selecting the right Portfolio by the customer and then specifying the units of the R-Model Portfolio that the customer wishes to purchase. Thereafter the customer has the option to either INVEST in the Portfolio in case he/she has enough ledger balance to meet the investment amount or ALIGN his/her existing Demat holdings. A detailed step-wise working of the R-Model Portfolio feature is given below:

STEP- 1
SELECT: The customer will select the Portfolio in which he/she wishes to invest. The system will display the quantity to be purchased for each of the scrips in the basket as per the exposure assigned to the scrip and the price of a single basket. For e.g. If the price of a single basket of stocks is Rs. 1,00,000 and the exposure assigned to Infosys is 10%. Then if the price of Infosys is Rs. 2500/- then 4 stocks of Infosys will be there in the Basket.

STEP- 2
CALCULATE: The customer will then select the number of baskets of the selected Portfolio he/she wishes to purchase. The system will calculate the amount required to be invested based on the price of a single basket. For e.g. In the above example; if the customer wants to purchase 5 baskets then the system will calculate that Rs. 5,00,000/- is required to be invested. As 5 baskets are being purchased, 20 stocks of Infosys will be there in the cumulative Basket.

STEP-3A
INVEST: The system will display a confirmation screen to the customer. Once the user confirms, subject to availability of Cash balance in the clients’ ledger, market orders for the requested units of stocks in the R-Model Portfolio will be submitted to the Exchange. The customer can view the order status of each of the stocks in the order log and upon successful execution; the same can be viewed in the trade log. The stocks will be delivered to the customer’s demat holdings as per the T+2 settlement cycle.

STEP-3B
ALIGN: On selecting the ALIGN option the system will run an automated program which will pull the stocks in the Demat holdings that are available for sale. Stocks will be pulled from Demat Holdings as per the following logic:
     • Stocks in Demat which are not a part of the R-Model Portfolio selected by the customer.
     • Stocks in Demat which are a part of the R-Model Portfolio but are in excess of the proportion specified in the R-Model Portfolio The user will then have the flexibility to select the stocks from his existing demat holdings that he/she wishes to sell. The system will sell the stocks specified and confirmed by the client. Thereafter, the user can invest in the new portfolio subject to availability of cash balance in his/her ledger as specified in the INVEST option above.

The minimum amount to be invested in R-Model Portfolio depends on the unit price of the portfolio selected by the client. The unit price of the R-Model portfolio is a function of the exposure and the market price of each of the stocks in the model portfolio. For e.g., If a single basket of the Model Portfolio has 4 stocks of Infosys and 2 stocks of BHEL. Assuming that the Market price of Infosys is Rs. 2500/- and the market price of BHEL is Rs. 300/- then the unit price of the basket is Rs. 10,600. As the market price of Infosys and BHEL change during the day the price of the basket will change. So, if the price of Infosys changes to Rs. 2600/- and the price of BHEL changes to Rs. 350/-, then the price of the basket will change to Rs. 11,100. The price of a unit portfolio displayed in the system changes with a delay of 5 minutes.

Yes, all Reliance Securities clients can avail this feature. Currently, this feature is available free of cost to all.

Yes, R-Model Portfolio Orders will be passed on basis of exposure available on Ledger Cash + approved Collaterals. For e.g., if the client has demat holdings and if he does not have enough cash, he can still pass orders through model portfolio. But the client’s ledger can go in Debit and client has to pay the balance amount on T+1 day, or else delayed payment charges will be levied at 18% per annum for brokerage customers and 21% for limit card customers.

You can only place Market Orders while buying the portfolio. However, when aligning the existing demat holdings, you can place Limit Orders while selling the existing stocks.

If a stock is listed on both NSE and BSE, then the system will display NSE by default. If you want, you can change the exchange to BSE. If a stock is listed on BSE only, then the system will display BSE as the Exchange.

• Arrangement of stocks in different criteria according to price, industry/sector, growth rate, market capitalization, profit goals etc.
• Invest in a basket of stocks.
• Ability to easily align your existing Demat holdings to the R-Model Portfolio.

As R-Model Portfolio orders are placed under CnC (Cash n Collateral) product type, the system will check whether you have sufficient delivery limits available to place the order (Cash + approved collaterals).

Yes, you can align your demat holding to R-Model Portfolio even without any cash in your ledger. However the system will not allow you to invest in the new portfolio unless the sell orders of your demat holdings have been executed and your delivery limits have been updated and are sufficient to purchase the R-Model Portfolio.

Yes. R-Model Portfolio orders can be placed anytime during the day like a normal CnC order.

No. You cannot place R-Model Portfolio order using Call&Trade; facility.

Once you have confirmed the Order placement under R-Model Portfolio you can view the Order status in the Order log.

Once the order has been executed you can view the same in the trade log.

The Reliance Securities Research team will come up with a Model Portfolio by selecting stocks from a variety of sectors such that the risk is reduced due to diversification. The benefits of generating returns above the benchmark over a specific investment horizon are thus achieved. Each portfolio will have 10-30 stocks with no stock having more than 10% exposure in the overall portfolio. The weight of each of the stocks as a percentage of the overall portfolio will be specified at the time of Model Portfolio initiation. For e.g. If there are 3 stocks in the Model Portfolio with the following exposures then the Model Portfolio Unit Price is arrived at by multiplying the quantity of each of the stocks in the basket by the Stock price.

The system calculates the quantity based on the stock price and the exposure of the stock in the portfolio. Accordingly the quantity will change based on the market price of the stock.

The price gets updated with a delay of 5 minutes.

The R-Model Portfolio is prepared with an investment horizon of 1-5 years and the stocks are chosen on their fundamental performance for the specified investment horizon. Hence the portfolio is not subject to frequent churning. Our Research Team will conduct a periodic review (2nd month of every quarter) of the model portfolio and in case a specific stock in the portfolio has outperformed or underperformed then such stocks may be exited from the portfolio and new stocks will be introduced in their place or the stock’s exposure in the portfolio may be reduced.

For e.g. In case 1 month from the date of Portfolio initiation, the exposure on Infosys is reduced to 40% and the exposure on Cipla and HUL is increased to 30% each. The system will calculate the quantity based on the stock price as below:

This facility is currently offered only on scrips which are included in the Model Portfolio created by the Reliance Securities Research team.

There is NO change in the brokerage rates for your normal Cash transactions and orders placed using R-Model Portfolio.

It is advisable that you don’t cancel the orders placed using R-Model Portfolio. However after having placed the order, you can cancel orders which have not yet been executed from the Order log.

Section 12 of the Prevention of Money Laundering Act, 2002, requires every banking company, financial institution and intermediary to verify and maintain the records of the identity of all its clients, as prescribed by rule 9 of the Rules notified by Notification No.9/2005 dated 1/7/2005.

Yes. Rules 9 and 10 of the Rules notified by Notification No. 9/2005 dated 1st July 2005 prescribe procedures & manner for verification and maintenance of the records of the identity of clients.

Every banking company, financial institution and intermediary is required to verify the record of identity and current address or addresses including permanent address or addresses of the client, the nature of business of the client and his financial status at the time of opening an account or executing any transaction with it.

Client means a person that engages in a financial transaction or activity with a banking company, or financial institution or intermediary and includes a person on whose behalf the person that engages in the transaction or activity, is acting. Rule 9 of the Rules notified by Notification No.9/2005 defines a client to include an individual, a company a partnership firm, a trust on unincorporated associative or a body of individuals.

Transaction includes deposit, withdrawal, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means.

Where it is not possible to verify the identity of the client at the time of opening an account or executing any transaction, the banking company, financial institution and intermediary shall verify the identity of the client within a reasonable time after the account has been opened or the transaction has been executed.

Yes. Every banking company, financial institution and intermediary is required to formulate and implement a client identification programme that it considers appropriate to enable it to determine the true identity of its clients to meet the requirements of PMLA. A copy of the client identification programme is also required to be forwarded to the Director, FIU-IND.

Officially valid document includes a passport, a driving licence, Permanent Account Number (PAN) Card, Voter's Identity Card issued by the Election Commission of India or any other document as may be required by the banking company, or financial institution or intermediary.

Following document need to be verified and maintained when the client is an individual:
    • One certified copy of an officially valid document containing details of his permanent address
    or addresses, current address or addresses; and
    • One copy of his/her recent photograph; and
    • Such other documents including in respect of the nature of business and financial status of the client as may be required by the
    banking company or the financial institution or the intermediary.

Following document need to be verified and maintained when the client is an individual:

    • Certificate of incorporation;
    • Memorandum and Articles of Association;
    • A resolution from the Board of Directors and power of attorney granted to its managers, officers or employees to transact
     on its behalf; and
    • An officially valid document in respect of managers, officers or employees holding an attorney to transact on its behalf.

Following document need to be verified and maintained when the client is an individual:

    • Registration certificate;
    • Partnership deed; and
    • An officially valid document in respect of the person holding an attorney to transact on its behalf.

Following document need to be verified and maintained when the client is an individual:
    • Registration certificate;
    • Trust deed; and
    • An officially valid document in respect of the person holding an attorney to transact on its behalf.

Following document need to be verified and maintained when the client is an individual:
    • Resolution of the managing body of such association or body of individuals;
    • Power of attorney granted to him to transact on its behalf;
    • An officially valid document in respect of the person holding an attorney to transact on its behalf; and
    • Such information as may be required by the banking company or the financial institution or the intermediary to collectively establish
    the legal existence of such an association or body of individuals.

Every banking company, financial institution and intermediary is required to verify the record of identity and current address or addresses including permanent address or addresses of the client, the nature of business of the client and his financial status at the time of opening an account or executing any transaction with it.

Rule 10 contained in Notification No. 9/2005 read with Notification No.15/2005 specify that the banking companies, financial institutions and intermediary shall maintain information on identity of clients both in hard and soft copies in accordance with the procedure and manner as may be specified by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority, as the case may be.

The records of all information on identity of clients referred to in Rule 3 contained in Notification No.9/2005 dated 1/7/2005 are required to be maintained by every banking company, financial institution and intermediary for a period of ten years from the date of cessation of the transactions with their clients.

As per section 13 of the Prevention of Money Laundering Act, 2002, if the Director, FIU-IND finds that any banking company, financial institution or intermediary has failed to comply with the obligations of regarding identity of clients then, he may levy a fine from ten thousand rupees upto one lakh rupees for each failure.

It is a robust Mobile Trading Application which freely enables you to trade on the move. Sign in through the secure Log In using your existing User ID and password. A wide range of mobile devices can now be used to trade instantly and effectively with the best execution.

RMobile Xpress can be subscribed by any of the Reliance Securities Limited (RSL) customer. The existing trading ID, password and security token will work on the RMobile Xpress platform. In case you do not have account with Reliance Securities, then you first need to open a trading account. You can also give the RMobile Xpress activation request at the time of account opening.

RMobile Xpress facilitates the user with many benefits like:

·           Place Orders anytime from anywhere

·           Access Streaming Market Watch

·           Get Intraday Charts

·            View Order Book, Trade Book, Trading Limits & Holdings, Quotes, Market Depth

·           Check status of orders & trade reports

·           View your day's / net position

Currently two subscription plans are available for RSL clients, which they can select as per their requirement:

You will need to use the same set of User ID and Password which you are using to access your Web Based / Desktop Based Trading platform.

You can use the facility of password reset available at web portal OR you can write to [email protected] for assistance.

You can subscribe to RMobile Xpress by logging in to the Trading Portal. You need to select your plan, mobile device type & feed the mobile number on which you want to receive the link to download the application. Once the subscription request is placed successfully, you will receive an SMS for downloading the application. Mobile trading rights will be enabled for you on T+1 working day. T being the day on which you have placed the subscription request. You need to download that application & register your mobile device by putting your Login ID & Password. Your ledger will be debited with the subscription charges on the day you register your device

Validity Period for RMobile Xpress will start from the day when the application is registered on your device and will end on 30th / 365th day (i.e. as per your subscription plan) from the start date. If not renewed till expiry date, registration will expire and you will not be able to access the application on that device.

Once your mobile device is registered, system will store the IMEI number of your device. That particular registration will be valid for that IMEI number only. If you change your device because of any reason, you will be required to subscribe / register your new device.

However if you reinstall the application on the same device (with same IMEI number) within the validity period, you will not be charged for that registration. You can register maximum up to 3 devices.

It is not necessary that you use the same mobile number that is registered with us. You can give any mobile No. to receive compatible mobile application download link.

You can view the expiry date of all your registered device/s by logging in to your online trading portal.
Login to New InstaPlus >> Popup for RMobile Xpress

You can renew your subscription plan for your registered device/s from the online trading portal: Login to New InstaPlus >> Popup for RMobile Xpress >> I Want to Renew

The renewal request can be placed by selecting the device for which you want to renew the subscription plan. You will be able to place the renewal request 7 days before the expiry date. In case you place renewal request before the expiry of your current plan, then system will store your renewal request and on the expiry date your plan will be renewed. This way you will get full value of your prior submitted renewal request.

No. with a single subscription, you can register only one device. If you want to register multiple devices, you need to place multiple subscription requests. You can register maximum up to 3 devices. You will be charged separately for registering each device. Each of your devices will have separate expiry date depending upon the plan chosen as well as the day you register your device. In case you register someone else’s device with your login details, the charges will be debited from your ledger account.
You will have an option to manage the expiry date of different devices.

You will have an option to swap the expiry date between registered devices. This option is given under: Login to New InstaPlus >> Popup for RMobile Xpress >> Swap Plan

Default plan allocation to device will be based on first subscription – first activation basis. However you can swap the expiry date between two devices. Example: If you have placed first subscription request on 1st June 2012 for 30 days plan & another subscription request on 10th June for 365 days plan. The mobile device which you register first will be considered for 30 days plan & device which you register next will have 365 days plan. Now if you want you can swap the expiry date of these two devices.

In case you have placed 2 different subscriptions request, upon registration of 3rd device system will allocate the validity as per plan which was subscribed first.

All the below mentioned Price based/product based/exchange based orders can be placed from RMobile Xpress:

·           Price Based orders
  -  Market Orders
  -  Limit Orders
  -  Stop Lose order

·           Product Based orders:
  -  CNC (Delivery trade)
  -  MIS (Intraday Trade)
  -  NRML

·           Exchange Based orders:
  -  NSE
  -  BSE
  -  NSE Futures & Option (NFO)
  -  NSE Currency Derivatives (CDS)

·           Streaming Market Watch

·           Index Watch

·           Intraday Chart

·           Order Placement – Place Order / Order Modification / order Cancellation

·           Trade Book

·           Position – View Position / Position Square-off

·           View Limits

·           DP holding – View Holding / DP Sell

·           Market Data - View Top gainers / Losers / Most Active / Volume Toppers / Open Interest

All orders / trades / positions taken from any source (through online / Dealer) will also reflect in RMobile Xpress.
Similarly orders / trades / positions taken from RMobile Xpress will reflect in your Online / Desktop Based Trading application. (i.e. InstaPlus / New InstaPlus / InstaXpress)

In such a case there exists a possibility of the transaction being failed. Please check the status in the respective section.
Example: while placing order if your device internet connectivity is interrupted, you should check the order book to know the status of such order.

We may add additional devices in the future, and the updated list would be available on web portal.

This could be related to free RAM available on your phone. If there is not much memory available, the application will not start. Please ensure no other application is running simultaneously on your phone when you run Mobile Trading System.

Yes, it is an encrypted application and approved by appropriate regulatory authorities.