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Order types:

  1. Stop Loss Limit & Market order
  2. After Market orders – can schedule it during live market for the next day as well
  3. Cover orders – Place a normal order and a position reversing stop loss order at once
  4. Bracket orders – Place a normal order, position reversal order & target profit order at once
  5. Bracket order with Trailing stop loss order coming soon
  6. Good till Traded order (GTD) : Place conditional orders and the order will be valid till the order is not executed
  7. Bulk orders
  8. Hedge margin benefit is available
  9. Check the margin requirement of covered call/put before you place the order
  10. You can place a normal square off as well as stop loss order without additional margin
  11. Interoperability between NSE & BSE available
  12. Hedge Nifty Futures position with Sensex futures position
  13. Square off USDINR position at NSE in CDSL segment in BSE

(No extra brokerage for any special order)

API:

  1. Web Socket API available
  2. Dot Net/ C sharp API for thick client available
  3. Rest API for Algo with web socket available
  4. Monthly unlimited Brokerage plan in API to Resident clients available

Fox Trader available at concessional rates (Advanced Trading software)

Miscellaneous:

  1. Mobile (android or iOS), Web & Desktop Trading application available
  2. Refer and Earn program: Minimum 10% (can go up to 30%)
  3. Trading & DEMAT AMC lifetime free
  4. Zero brokerage for delivery trades under Flat Fee plan

For NRO NON PIS clients:

  1. Place intraday orders in Futures & Options
  2. Buy shares which are in NRI Breach list or Red Flag list
Comment (12) Hits: 23918

Starting 1st Oct 2020, Clearing Corporations(CCs) is taking 4 snapshots of client position and margin thereof at random intervals. CCs are providing these Peak margin files Stock-Brokers / Clearing Members (TM/CM) to ensure that they are collecting margin upfront to meet the requirement of Peak Margin. This is in addition to existing Margin Collection, Reporting and Penalty requirement for end of the Day Margin Reporting.

Starting 1st Dec 2020, Clients would be subject to Peak Margin requirement as well as End of Day (EOD) Margin requirement. Short-fall in Peak Margin or EOD Margin would be subject to penalty at prescribed rates along with 18% GST.

The penalty would be collected by Clearing Corporations from Client through Stock-Brokers / Clearing Members.

What has changed at ProStocks :

  1. Effective from 1st March 2021, Client selling delivery from Demat Holding will get 50% (70% between 1st Dec 2020 to 28 Feb 2021) Credit for Sale (CFS) on a real-time basis in Trading Application instead of 100% (Prior to 1st Dec 2020), in all the three Trading Platform which we have, Namely PROSTOCKS, PRO AND BEST. Remaining 50% CFS will be available from next day.
  2. Client selling delivery from previous day's buy position, also known as T1 Holding or BTST or Stocks to be received (SR) will get 50% CFS on a real-time basis in PROSTOCKS AND PRO Trading Application and Zero (NIL) instead of 100% CFS (Prior to 1st Dec 2020), they were getting so far. Remaining 50% CFS will be available from next day.

Why 70% CFS or 50% CFS instead of 100%

NSE allowed that Client's margin can be considered equal to 100% of the sale value once Early Pay-In of Securities sold by the Client through NSE Circular and Annexure A NSE/INSP/45191 dated July 31, 2020.

............However, in respect of sale of shares by a client for which early pay-in has been accepted by CC, since settlement of the trade is guaranteed by the CC, member may choose to give credit of the sale value of the shares in the ledger account of the client, which may be considered as margin towards subsequent trade/s of the client.

NSE by Download Ref No: NSE/INSP/46485 and Circular Ref. No: 72/2020 dated November 27, 2020, just a day prior to Peak margin Penalty provisions coming into effect has modified the above-said clarification/guidelines by an answer to question 1 of Annexure A of the said circular:

........However, the sale value of such securities (EPI value), as reduced by value of the 20% upfront Margin, shall be available as Margin for other positions across all the segments

Care and Caution for Client Trading on BEST Platform for Derivatives and availing In-built Hedge Margin Benefit( HMB)

Whenever you are removing hedge or sq off or changing the portfolio, Please extremely careful to first sq off the higher margin / naked or risky leg before you sq off the leg which created the hedge or reduced the risk and or Margin.

Example: Assume you have available Margin of Rs 1,60,000 and one lot NIfty Call Buy position for which you have blocked/ paid margin of Rs 10,000. Now you want to sale one lot of Nifty Futures for which margin is Rs 1,60,000. Instead of you getting charge margin of Rs 1,70,000, You were subject to a margin of just Rs 17,000 ( which is 10% of actual margin otherwise payable) for both the position, together and got HMB of Rs 1,53,000. Post this position, now you have an available margin of Rs 1,53,000. Further, assume that you bought delivery of Rs 1,50,000 from the available margin of Rs 1,53,000 and the now available margin is Rs 3,000.

Now if you go ahead and do sale / sq off of one lot Nifty Buy Call leaving one lot Nifty futures sale as naked/unhedged position and margin requirement for this position is Rs 1,60,000 against available Margin of Rs 13,000 ( Rs 3000 plus RS 10000 from sale of Call Option) leaving Margin Shortfall of Rs 1,47,000.

Be extremely careful to sq off the naked leg first which in this case was Nifty Future Sale position before you sq off leg which created hedge. In case of Margin shortfall even of peak margin and even for a few seconds, You are expressly agreeing to agree to bear the penalty and consequences thereof.

Impact of Peak Margin Reporting effective 1st Dec 2020 on Resident Indian Client using the PROSTOCKS, PRO and BEST Trading Platform

Impact of Peak Margin Reporting effective 1st Dec 2020 on Non Resident Indian Client having NRE Trading and Demat Account linked with NRE PIS Bank Account and using the PROSTOCKS , PRO and BEST Trading Platform provided by ProStocks

NRI Client buying against sale of delivery or against PIS Bank balance has to ensure that their Bankers makes us payment by Trade Plus 1 Days. Most Banks including HDFC Bank has allowed NRI to debit their PIS Bank Account and credit Sunlight Broking LLP ( ProStocks 's Bank Account with respective Banks).

In case funds are not received by Settlement Date ( Which is Trade plus Two Trading Days) , Exchanges / Clearing Corporation will levy penalty of 1.18 % ( 1 percent plus 18 percent GST on 1 percent) of shortfall amount for two days, so this will be 2.36 percent for the shortfall amount.

ProStocks will recover from client and will make the payment to Exchanges/ clearing corporation.

Impact of Peak Margin Reporting effective 1st Dec 2020 on Non Resident Indian Client having NRO NON PIS Trading and Demat Account linked with NRO Savings Bank Account and using the PROSTOCKS , PRO and BEST Trading Platform provided by ProStocks


Peak Margin Reporting and its Impact effective 1st September, 2021



S P Toshniwal

www.prostocks.com

+91-22-62434343

Comment (1) Hits: 21206

Yes.

Your investment in India through the Stock Market is governed by the following regulation:

  1. Foreign Exchange Management Act (FEMA) supervised by RBI
  2. Income Tax Act, 1961 supervised by Income Tax Department, Govt. of India
  3. SEBI regulation for Exchanges, Stock Broker and Depository

You can invest on Repatriable Basis (NRE) or Non-Repatriable Basis (NRO) or both.

When you open NRE PIS Bank Account: Your Bank provided you with the following THREE services besides usual banking Services:

  1. Applying to RBI and taking PIS (Portfolio Investment Scheme) permission. This is a one-time activity. This is a requirement under FEMA.
  2. Reporting all your transaction routed through PIS Bank Account to RBI on a regular basis. This is a requirement under FEMA.
  3. Calculating, Deducting and Depositing you tax liability arising out of shares sold through PIS Trading Account and proceeds credited to PIS Bank Account. This is required due to Section 195 of the Indian Income Act,1961.

FEMA has been amended in Feb 2016, and NRI investing through Non-Repatriable Basis (NRO) route are not required to take PIS permission and hence no requirement of reporting transaction to RBI.

In a nutshell, Service Number 1 and 2 mentioned hereinabove are no longer required for NRO Account. However, Service Number 3 is still applicable.

Banks are willing to provide Service Number 3 as mentioned hereinabove for NRO Account BUT at the same taking charges which they are taking for NRE PIS Account. In such case, your Banker will open your normal NRO Saving Bank Account, will insert Dummy PIS permission Number, so their software will behave as if this is PIS account and will rename this as NRO Investment Account and will provide you Tax Deduction Service.

ProStocks is now bring to you NON PIS NRO Trading Account.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 31st March, 2023) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

What are the documents required for opening an NRO Account?

Following are the document required for opening NRO Trading and Demat account:

  1. Attested copy of PAN card,
  2. Attested copy of overseas address proof – Copy of Driving License/Foreign Passport/Utility Bills/Bank Statement (not older than 2 months)/Notarized copy of rent agreement/Leave & License agreement/ Sale Deed. NRI residing in Gulf countries and not having any of the above overseas address proof can give Declaration of P.O. Box in your residing country,
  3. Self-certified copy of Indian address proof, if any. Providing Indian address in KYC is voluntary. You may provide for your own benefit.
  4. Passport size photograph
  5. In case of an Indian Passport: Attested copy of valid passport with copy of Valid Visa
  6. In the case of Foreign Passport: Attested copy of valid passport, Copy of PIO/OCI card.
  7. Proof of Bank account (a cancelled cheque leaf of your NRO savings bank account)

Note 1 : Copy of PAN card, Passport, Power of Attorney and Foreign address proof are required to be attested. Attestation can be done by the Indian Embassy or any other competent authority like Consulate General or Notary Public or Overseas Banker or Indian Banker. The attesting authority should affix a “verified with original” stamp, name, designation, signature and date on the said documents.

Note 2 : Attestation is not required when your KRA status and IPV status is Y (Yes) and no change is required from your previous KRA. For checking your KRA status go to KYC inquiry menu on www.cvlkra.com

Can I convert my existing NRO Trading and Demat Account linked to NRO PIS Bank Account to Non-PIS NRO Trading Account?

Yes

Just send email to [email protected] to convert their NRO Trading and Demat Account to NON PIS Account.

You will trade like Indian Resident Account. Yes exactly like Resident Indian except two exception:

  1. Your account is subject to withholding tax
  2. You cannot do intra-day trades in equity segment.

You will add funds in your trading account just like resident Indian account and also withdraw funds. Funds withdrawal may take processing time of one working day to calculate withholding tax. You can add Equity Futures and Options also in same Trading Account by filling one pager Segment Activation Form and one pager Custodial Participant (CP) Code Application Form

NRO Account for Equity Delivery Trades :

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

You will also need to open NRO Saving Bank Account. You no longer required to open NRO Invest Account (similar account was earlier called NRO PIS Bank Account). ProStocks can assist you in opening your Bank Account. No PIS Bank Account required.

The dividend will be credited to your NRO Savings Bank Account ( Primary Bank Account, in case of more than one Bank Account) by the respective companies whose shares are held in your NRO Demat account on the record date for dividend.

You need to transfer funds from your NRO Savings Bank Account before buying. Once you buy, ProStocks will send you contract note same day and credit shares to your Demat Account on securities payout day. Generally you are expected to sell after shares credited to your Demat Account and not before. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale minus withholding tax liability, if any.

Similarly, when you sell the shares, ProStocks will send you contract note same day and credit your Trading Account with us on funds payout day. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale, minus withholding tax liability, if any. RBI reporting is not required for NRO Account after February 2016 but compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS) is required.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 31st March, 2023) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

NRO Account for Equity Futures and Options (Derivatives) Trades

You will need to open NRO Saving Bank Account. ProStocks can assist you in opening your Bank Account.

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity derivatives trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 31st March, 2023) and you would be able to trade in equity futures and options just like Resident Indian. No Custody Account, No hassle of dealing with Custodian besides Stock Broker.

You are no longer required to open custody or custodial account with ISSL or anyone when you do equity derivatives trades through ProStocks. Since you are not required to open Custody Account, you will save a significant amount, which was otherwise, you were required to pay to Custodian. ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

WhatsApp support for NRI. Send opt in request using this link

SP Toshniwal

B50,  B Wing, 3rd Floor ,Pravasi Estate Goregaon Mulund Link Road

Goregaon East Mumbai 400063  +91-22-62 43 43 43 www.prostocks.com

Comment (5) Hits: 18676

  • How to protect your shares and mutual funds in Demat Account from Power of Attorney (PoA) holder?
  • How to Freeze and Unfreeze the holdings in Demat Account?
  • How to secure Demat Account even after giving PoA to Stock / Brokerages or Relatives?

This article requires you to register for the easiest facility of CDSL for your Demat Account . Please read our blog on how to register for easiest.

You can log in to your easiest account and use the option to Freeze holding for debit instruction. You can lock holding in your Demat Account in part or full or even part quantity of particular Scrip/ISIN. You may have given PoA to Stock Broker/Brokerage/Relatives, you can make sure that PoA given by you cannot be used for the period, which you may so desire, as ISIN can be frozen and you may unfreeze when you want to sale/transfer particular scrip and quantity. By this process, you can make PoA inactive for whatever period, you would like.

Login to easiest

Login To Easi/Easiest

For that go to CDSL’s website www.cdslindia.com then click on Login-New System My easi (BO/CM) under the Quick Links section. It will take you to the CDSL's Login page.

Login to the CDSL’s easi/easiest account, on the home page there is a menu bar where different options are available.

How to freeze and unfreeze holding?

In CDSL easiest account user will get an option of freeze or unfreeze holding. With this option, the user can freeze the shares in the account. This option is available in CDSL user login under the freeze menu.

CDSL freeze menu

To freeze the ISIN

  1. Go to the Freeze menu then select Setup & click on New Setup

  2. Then select the freeze type. (To freeze whole account select BO & to freeze one or more ISIN select BO-ISIN.) Then select the quantity type Full or Partial. ISIN can be freeze for Debit, Credit or Both. User can set for a Current Date as well as a Future Date

    Freeze New Setup
  3. After filling all the details click on save then the confirmation window will pop up click on OK

    Freeze Confirmation Window
  4. Then a verification window will open again click on ok

    Freeze Verification Window
  5. Then again go to Freeze menu -> Setup

    There you’ll see the holding for which you sent the freeze request

    Then select the holdings and click on commit and give approval

    Freeze List

    The user has the option to modify/delete only those freeze requests which have been set up by the user and which have not been verified by the user.

Unfreeze

Unfreeze option is also available under freeze menu. User can unfreeze only those requests which are currently in a frozen state.

UnFreeze Menu List
  1. Go to Freeze menu then click on Unfreeze & click on Unfreeze Setup

  2. Then select the transaction ID and click on Go to Unfreeze Commit , it will unfreeze the frozen holdings.

    UnFreeze List

    User can also print the acknowledgement copy of their freeze and unfreeze request, by going to Print Acknowledgement Copy in Freeze Menu

    Freeze Acknowledgement Copy

Additional Links:



S P Toshniwal
Founder and CEO
www.prostocks.com

Comment (2) Hits: 16073

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