FundsIndia
Equity FAQ
1 How can I open an account for equities trading?
  You can open an equity trading account with FundsIndia in 3 simple steps.
  • Fill in your investor profile under equity section
  • We will send you our Broker's executive to meet you personally to collect the KYC documents and for your signatures
  • Your account gets opened in 3 working days from the day of signing the KYC forms
  • We will notify you via mail when the account is ready for transactions
2 What are the account opening charges?
  We charge Rs.500 as the equity account opening fee.
3 What are the Brokerage and Taxes applicable for equity and ETFs transactions?
  Brokerage and Taxes

FundsIndia's brokerage for equity and ETF transactions is very attractive when compared to the industry average of 50 basis points (i.e. 50 paise brokerage on every Rs 100 invested)

At FundsIndia the brokerage is Rs. 25 or 30 basis points (i.e. 30 paisa on every Rs 100 charged), whichever is higher.

Rs 11 will be charged per Script sold as Demat Debit Charges. This Charge is a mandatory charges charged by CDSL

Please note that there are additional charges that all brokers are legally required to charge on equity transactions as per SEBI. The charges are as follows:

  • Stamped duty/charges on delivery: 0.01% of transaction amount
  • Securities transaction Tax on delivery: 0.125% on transaction amount
  • Turn over tax/transaction charges: 0.0035% on transaction amount
  • Service Tax: 10.36% on (brokerage + sum of above three charges).

These additional charges are mandated by the regulatory authority and are common across all brokers.

Please Note: A minimum brokerage charge of Rs.25 will apply to all transactions below the value of Rs.8000/-

A detailed illustration with two cases
  • A use case scenario where the minimum brokerage is charged and
  • A use case scenario where 30 bps is charged.
Illustration 1 transaction < 8000
   
Heading Rs.
total turnover 4500
Flat Brokerage 25
Stamped duty/charges on delivery: 0.01% 0.00135
Securities transaction Tax on delivery: 0.125% on turnover 5.625
Turn over tax/transaction charges: 0.0035% on turnover 0.1575
Service Tax: 10.36% on brokerage 1.3986
Total Charges ( Including Brokerage) 25
Total Payable ( incase of Purchases) 4525
Total Receivable ( incase of Sale ) 4475

Illustration 2 transaction > 8000
   
Heading Rs.
total turnover 50000
Brokerage 30 bpts ( 30 paise for every Rs 100 ) 150
Stamped duty/charges on delivery: 0.01% 5
Securities transaction Tax on delivery: 0.125% on turnover 62.5
Turn over tax/transaction charges: 0.0035% on turnover 1.75
Service Tax: 10.36% on brokerage 15.54
Total Charges ( Including Brokerage) 234.79
Total Payable ( incase of Purchases) 50234.79
Total Receivable ( incase of Sale ) 49765.21
4 I am a mutual fund investor in your platform. Do I have to fill up the information again on your screens and send you the documents?
  We require more information for equity trading account opening as per SEBI norms. We will ask you to give us only the details which do not already have
5 What documents are needed from me to open your account?
  We need an address proof, ID proof, a cancelled cheque, and your PAN card copy.
6 I already have a demat account. Can I use that to trade through your platform?
  No. We require you to open a demat account and brokerage account through us to trade in our platform
7 I have brokerage and demat accounts at other brokers. Can I consolidate it in your platform?
  You have to open a brokerage account and demat account on our platform first and then transfer all your shares in your other demat accounts to the new demat account. Once done, you will be able to see a consolidated view of your holdings in the FundsIndia platform.
8 How can I transfer my shares from my existing demat account to your platform's demat account?
  You can transfer the existing equity holdings in other Demat accounts into your FundsIndia demat account by using an Inter-settlement challan which will be available with your existing service provider. You can also make partial transfer of your stock holdings.
9 I have other brokerage accounts. Can I open one through you?
  Yes, you can open multiple brokerage accounts with multiple brokers
10 Which exchanges do you trade in?
  We are registered Brokers with the Bombay Stock Exchange Ltd. Our SEBI registration number is .INZ000241638 ,INF011468932.
11 How do I transfer funds to my brokerage account?
 
  • Netbanking: The investor will use the "Equity Payment Gateway" to log in to his bank account,and transfer the money to the broker's bank account. Investor has to transfer from his PRIMARY bank account specified in the account opening form, as the amount transferred can be easily 'tagged' to the investor's brokerage account. The amount will be available for buying shares within the next 30 minutes for investment.

Note :

The Investor will have to enter his Funds Transfer details into FundsIndia's "Payment Confirmation" page. The investor will follow the method as mentioned below.

Step 1 - Enter the Bank Detail
Step 2 - Enter the Funds Transfer date
Step 3 - Enter the mode of transfer i.e. Net-banking (or) NEFT (or) Cheque.
Step 4 - Enter the reference number if the mode of transfer is Net-Banking. (or) Enter the NEFT reference number if the mode of transfer is NEFT. (or) Enter the cheque number if the mode of transfer is cheque.
Step 5 - Enter the amount transferred.
12 How do I transfer funds from my brokerage account to my bank account?
  With FundsIndia you can place request in "Withdrawal Request" page. A request made during a business day before 2pm, the money would get transferred on the next working day. A request made after a cut-off time of 2pm the money would get transferred on the second next business day.
13 Why is there a discrepancy in the price I see on the screen and the order executed?
  The stock prices you see on our site are 5-minute delayed prices. Order execution will, however, be made accurately on real-time prices based on the order limits
14 Why cannot I buy Options, Futures through your platform?
  We have designed this platform for medium and long term investments. In our view, options, and futures constitute a high-risk product category that we do not advise for our regular investors
15 Why is there no margin or shorts offered on your platform?
  We have designed this as a relatively safe, low-risk equity platform for our investors. For this reason, we will not be offering margin-trading facility to our investors on this platform. What that means is that this will be a cash-and-carry system - an investor can purchase stocks only to the extent of money you have in your trading account
16 Why are some of the stocks not found on your platform
  There are approximately 4000 company stocks listed in BSE, at FundsIndia we offer 2600 company shares for investments which are highly liquid and stocks that are traded daily on the stock exchange. These companies are widely categorized into large cap, mid cap and small cap from 21 sectors..
17 Can I sell my mutual funds and use that money to buy equities on your platform or vice-versa?
  Yes, you can. You have to first sell the mutual funds and you will get the money in your bank account in T+3 days (if it is an equity fund). Then you have to transfer the money from your bank to the broker's bank account. Once the money reaches the broker's bank account, you can start buying equities on our platform
  NRI can invest in equity but with us due to operational constrains we do not offer equity for NRI clients at the moment. We will re-consider this decision over a period of time
19 What are the types of order FundsIndia offer in Equity platform?
 

With FundsIndia you can place 3 types of orders.

  • Limit Order
  • Market Order
  • Stop-loss Order
20 What is a Limit Order?
  An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
21 What is a Market Order?
 

A market order is an order to buy or sell a stock at the current market price. A broker enters an order as a market order when requested to do so by his or her client. When a market order is placed, it is almost guaranteed that the order will be executed.

A market order is that the price is paid when the order is executed. The price may not always be the same as that presented by a real-time quote service. This often happens when the market is changing very quickly. Placing an order "at the market," especially when it involves a large number of shares, offers a greater chance of getting different prices for different parts of the whole order.

22 What is a Stop-loss Order?
 

A stop loss is an order to buy (or sell) a security once the price of the security climbed above (or dropped below) a specified stop price. When the specified stop price is reached, the stop order is a limit order (fixed or pre-determined price).

Stop Loss Limit Order
A stop loss limit order is an order to buy a security at no more (or sell at no less) than a specified limit price. This gives the trader some control over the price at which the trade is executed, but may prevent the order from being executed.

A stop loss buy limit order can only be executed by the exchange at the limit price or lower. For example, if an investor who is interested in investing in a particular share when the share technically break-outs, at Rs 120 when the market price is at 100 he can place a stop-loss order with the price range of 115 to 120. When the share reaches a price between 115 to 120the stop loss order gets automatically executed within the specified range. Similarly in a stop loss sell order an investor can protect his loss by placing a stop-loss order. For example, if an investor who has invested in a share at Rs 100 can protect his loss by placing the stop loss order. He can place a stop loss order with range of Rs.95-90. When the price reaches 95 and below the order gets executed within the specified range

23 When can I place an order?
 

With FundsIndia you can place real time market orders and GTC (good till cancelled).

A real time market order can be placed between 9.am of the trading day and till 3.30pm of the same trading day. The orders placed during the day will be automatically cancelled after the market timing.

A GTC order can be placed anytime during the day. A GTC order will not be executed until the limit price has been reached within the next 7 calendar days. If the GTC order is not executed with 7 calendar days the GTC order will automatically cancelled at the end of the 7th calendar day.

24 I already have an account with FundsIndia. I would like to open an equities account. Do I have to submit all my documents again?
 

Opening an equities account involves opening a Demat account specifically. A Demat account requires proof of PAN card, address and bank account. Mutual fund and deposit operations do not need a Demat account, and hence we keep Demat account opening only for investors who are looking for equities. Because of this - to facilitate maintenance of MF and equity operations separately - we require you to submit the set of documents again for equity (Demat) account opening

25 How do I transfer shares from my other Demat account to my FundsIndia Demat account?
 

To transfer your shares from another Demat account to your FundsIndia Demat account, you would need to follow the following steps:

  • You would need to use a "Delivery instruction Slip" (DIS) - a set of these was part of the account welcome kit sent to you when you opened your Demat account with FundsIndia
  • In this DIS, you will need to mention your FundsIndia Demat account as the beneficiary account number
  • Also, please mention the shares with the ISIN code that you want to transfer from your old Demat account
  • After filling the form, and signing it, please deliver the DIS to your current broker
  • If delivered before 6 PM, your shares will be transferred to your FundsIndia Demat account by the next business day, and will show in your portfolio
26 I read that you accept only delivery-based trading and not intra-day trading. Why is this so?
 

FundsIndia is a platform specifically crafted for investors who seek the cost and convenience of an online platform. There are plenty of other platforms that provide trading services. We think that day-trading is not a beneficial activity for regular, medium-long-term investors. Hence, to ensure that we can provide low-cost services for our investors, we have decided to offer only delivery-based trading

27 What is a GTC (good till canceled) order?
  A Good-Till-Cancelled (GTC) order is an order to buy or sell a security at a specific or limit price that lasts until the order is completed or cancelled. A GTC order will not be executed until the limit price has been reached. Investors often use GTC orders to set a limit price that is far away from the current market price. At FundsIndia an investor can place a GTC order for an active period of 7 calendar days. The order will automatically get cancelled on the 8th calendar day
28 How to place a GTC buy order ?
  A GTC Buy order can be placed by Selecting Buy/Sell from the Equity Menu. Select Buy and then select GTC under Validity. The GTC order will be good for 7 calendar days.

Note:-

The cash equivalent to the value of the GTC buy order will be kept on hold till the GTC order is executed or cancelled.
29 How to place a GTC Sell order ?
  A GTC Sell order can be placed by Selecting Buy/Sell from the Equity Menu. Select Sell and then select GTC under Validity. The GTC order will be good for 7 calendar days.

Note:-

The shares equivalent to the quantity of the GTC Sell order will be kept on hold till the GTC order is executed or cancelled.
30 Who should I call if I have a problem with my account and/or trades?
  Please contact FundsIndia. equities@fundsindia.com. 1860 258 3055