Notification

No new Notification messages

Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.
Trade Now, Pay Later with up to 4x Leverage
Never miss a good trading opportunity due to low funds with our MTF feature.

What are the Major Types of Trade in the Indian Stock Market?

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

With the stock market becoming an increasingly popular platform to earn extra income, traders must be aware of all the major types of trades on the market. Here’s a list.

Introduction to the Indian Stock Market

There is no doubt that Indian stock market trading has become extremely popular in the past few years as a means of generating additional income. India is one of the fastest growing economies in the world and as a result of this, the investment options on the stock market are endless for both domestic and foreign traders.  The stock market is a platform that forms a bridge between traders looking to sell various financial instruments and buyers looking to invest in them.

The Indian stock market consists of two stock exchanges where most of the trading happens. These include (a) the Bombay Stock Exchange or BSE and (b) the National Stock Exchange or NSE. Both of these exchanges operate during the same hours and have the same process for closing deals as well. Both the stock exchanges operate according to the regulations and monitoring done by SEBI or the Securities and Exchange Board of India.

Major Types of Trading

To make the best profit, traders use different strategies. However, certain strategies that might work for one trader might not work for another. This is why traders must be aware of all the major types of trading in the stock market and adjust their approach in alignment with their financial goals.  Some of the major types of stock market trading include:

Cash Trading

  1. Cash trading is a conventional method of trading in the stock market
  2. Under cash trading, shares are sold or bought for cash.
  3. When investors indulge in cash trading, they have the benefit of holding onto a stock for as long as they want
  4. Once the stock reaches the profit that the investors desire, they can decide to sell it
  5. Traders are expected to pay the full amount of the stocks in cash which helps traders from overindulging
  6. It is one of the best trading strategies that new traders can use as it is hassle-free and does not require a lot of experience to get started.
  7. Cash trading also has a low-risk factor

Intraday Trading

  1. Of the many stock market trading strategies, intraday trading is the most common one.
  2. Intraday Trading can offer higher-than-average profits but it is also the riskiest trade type when compared to others.
  3. Intraday trading happens in a single trade day meaning that stocks are bought and sold on the same day.
  4. As traders are closing deals on the same day, transactional charges on their Demat account do not apply.
  5. Intraday traders look at all the aspects of the stocks including their price movements to zero in on the trades they want to invest in.
  6. Traders either buy first and sell later in the day or vice versa.

Delivery Trading

  1. This is another traditional method of investing using which traders can make significant profits.
  2. In delivery trading, traders purchase company shares to hold them over an extended amount of time.
  3. This time frame can extend anywhere from weeks to even years.
  4. As a part of delivery trading, sellers need to transfer their shares from their demat account to the buyer’s demat account.
  5. Traders cannot buy and sell shares in one day.
  6. Investors have better control over the purchased stock in delivery trading.
  7. Delivery Trading offers long-term benefits as over the holding period of the stocks, a company can likely experience appreciation.

Margin Trading

  1. Involves a trader borrowing funds from a stockbroker to buy shares or stocks.
  2. This helps investors purchase more than their current funds will let them permit.
  3. Helps investors take a larger position.
  4. Margin trading also helps traders have access to the potential for higher returns.
  5. This trading method is a great way to generate profits short-term.
  6. The broker, who has lent the inventor funds, charges a nominal interest, annually on the amount loaned.
  7. Investors can either use cash or the securities in their demat account as leverage for margin trading.
  8. While the chances of higher returns exist, so the chances of potentially greater losses do too.

Derivatives Trading

  1. Derivatives can be defined as a financial contract between two or more parties.
  2. The derivative, as a security, gets its value from an underlying asset or group of assets. These assets are determined by the parties involved in the contract.
  3. As a part of derivative trading, investors can buy or sell an asset for a future period.
  4. Derivative contracts come with a fixed expiry date.
  5. It is better to invest in a derivative contract than buying the underlying asset as the gains in such a contract have the potential to be greater.
  6. It is a leverage form of trading where investors can buy several underlying assets by paying a small amount.

Futures Trading

  1. Futures are a type of derivative contract that derive their value from the underlying assets.
  2. In future trading, assets are sold or purchased on a future date at a predetermined price.
  3. Assets such as gold, silver, shares of a company or even a commodity can be a part of the underlying group of assets in a futures trading.
  4. The buyer in a futures contract is known to have the long position while the seller is known to have the short position.
  5. A future contract’s value changes based on the price of the underlying assets.
  6. Both the buyer and seller are under the obligation to honour the contract.

Options Trading

  1. Options are another type of derivative contract.
  2. There are two types of option trading.
  3. The call option gives the right to an investor to buy an asset at a particular price before its expiry, without having the obligation to do so.
  4. The put option gives the investor the right to sell an asset at a fixed price before the expiry of the asset without the obligation to do so.
  5. Options are an affordable way to invest in the market as they have great leveraging power.
  6. There are chances of higher returns as investors can profit from both the upward and downward movement of the market.

Arbitrage Trading

  1. Arbitrage trading is a very quick way of trading.
  2. Investors who deal in arbitrage trading simultaneously buy and sell securities on different exchanges.
  3. This helps them earn greater profits because of the price differentials.
  4. This price differential, however, is mostly short-lived and usually does not last for more than a few minutes or seconds.
  5. The same asset needs to trade at different prices across different exchanges to carry out an arbitrage trade.
  6. Since the price differential window is short-lived, the sooner trades are done simultaneously, the better the chances of generating profits.
  7. SEBI does not allow arbitrage trading on the same day, so traders will have to sell stocks in their demat account on one exchange and buy the same the next day from a different exchange.

Swing Trading

  1. In swing trading traders invest in stocks that will help yield a profit over a few days or weeks.
  2. Traders can determine which stocks to invest in by observing stock price patterns.
  3. This helps them determine when the price of the stocks might go up to buy low and when the price will go down so they can sell high.
  4. This analysis can be done by observing charts and past price movements of the stocks.
  5. Traders can incur losses as well when the price of the asset goes the wrong way.
  6. Swing trading takes practice to trade successfully and make profits.

Positional Trading

  1. In positional trading, traders can hold their positions for an extended period.
  2. This period can extend anywhere from weeks to even years.
  3. Positional trading focuses on capitalising on long-term trends in the market and not on short-term fluctuations.
  4. Traders can hold onto their shares and choose to sell them when the shares’ prices are high to generate significant profits.
  5. Since positional traders usually indulge in fewer trades, they also incur less transactional costs.
  6. Positional trading offers more flexibility in terms of schedule to a trader.
  7. Since the impact of short-term fluctuations in the market does not impact the shares in positional trading, it is a less risky method of trading.

Algorithmic Trading

  1. Algorithmic trading uses computers to place a trade to generate profits.
  2. These computers are specially programmed to follow instructions to place trades fast and frequently which humans cannot do on their own.
  3. There is a defined set of rules that needs to be followed in algorithmic trading.
  4. These rules are based on price, timing, quantity etc.
  5. Algorithmic trading rules out potential emotional impacts that might affect trades, thus making trading more systematic.
  6. Algorithmic trading also makes the market more liquid.
  7. Trade orders are placed accurately and instantly.
  8. Automated checks on market conditions are also done simultaneously.

Commodity Trading

  1. Commodity trading helps with risk management for stakeholders.
  2. Such stakeholders include end-users like farmers, producers, etc.
  3. In India, institutional as well as retail investors are also attracted to invest in commodity trading.
  4. A majority of the portion of commodity trading includes agricultural commodities.
  5. Other than agricultural commodities, commodity trading can also include metal and energy commodities.
  6. There are three commodity exchanges in India:

a.      Multi Commodity Exchange of India Ltd or MCX - Specifically for energy and metal commodities.

b.      National Commodity and Derivative Exchange or NCDEX - For agricultural commodities.

c.       Indian Commodity Exchange or ICEX - A variety of commodities can be traded here.

Currency Trading

  1. Currency trading is the main aspect of global financial markets.
  2. As the name suggests, currency trading is a type of trading where one currency is exchanged for another.
  3. Forex or the foreign exchange market is the main platform where currency trading is carried out.
  4. The main purpose of currency trading is to make profits out of the fluctuations in the exchange rates of the currencies being exchanged.
  5. Currency trading is highly liquid since Forex itself is one of the most liquid markets across the globe.
  6. Forex is accessible to traders 24 hours, 5 days a week so traders across different time zones do not have accessibility issues.

How to Pick the Right Trade for You

Choosing the right type of trade depends on various factors, including your financial goals, risk tolerance, and the amount of time you can dedicate to trading. Here are some tips to help you decide:

  1. Assess Your Risk Tolerance: Understand how much risk you are willing to take. For example, intraday and margin trading are high-risk but can yield quick returns, whereas delivery and positional trading are lower-risk with long-term benefits.
  2. Define Your Financial Goals: Are you looking for quick profits or long-term growth? Short-term traders may prefer intraday or swing trading, while long-term investors might opt for delivery or positional trading.
  3. Consider Your Time Commitment: Some trading types, like intraday trading, require constant monitoring of the market, while others, like positional trading, allow more flexibility.
  4. Do Your Research: Before diving into a particular type of trading, ensure you understand its nuances, including potential risks and rewards.
Download App

Conclusion

India’s stock market offers many trading types for investors and traders, with different preferences, to choose from. With comparatively faster-paced trading like intraday trading to a more laid-back approach of positional trading, there is something for every kind of trader. However, before traders decide to start their trading journey with a new type of trading, they must do their research to reduce any potential risks.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Frequently Asked Questions

search icon

What are the different types of trades in the Indian stock market?

Answer Field

The stock market is full of trading options for every kind of trader. Here is a list of some of the different types of stock market trading methods:

  • Intraday Trading

  • Cash Trading

  • Delivery Trading

  • Margin Trading

  • Derivatives Trading

  • Futures Trading

  • Options Trading

  • Arbitrage Trading

  • Swing Trading

  • Positional Trading

  • Algorithmic Trading

  • Commodity Trading

How does intraday trading differ from delivery trading?

Answer Field

Intraday trading is a fast-paced type of trading that happens in one trading day. All stocks or shares are bought and sold in a single day. 

In delivery trading, on the other hand, investors can hold onto shares and stocks over an extended period, till they reach a profitable amount.

What are the risks and benefits of stock trading?

Answer Field

Some of the benefits of stock trading include: 

  • Easy way to invest

  • Helps diversify portfolio by letting traders invest in different companies

  • Stocks stay fairly liquid 

  • Stocks can provide returns to their investors despite inflation

 

Some risks that stock trading holds include:

  • Stock prices will go up and down because of market volatility and can result in losses for investors

  • Trading in stocks takes time to get used to as traders need to be aware of all the pros and cons of all the different types of trading to steer clear of any potential losses

  • Any gains from stocks can be subject to capital gains taxes

Which type of trading is more profitable?

Answer Field

Different types of trading suit different traders. Intraday trading can offer quick profits, while delivery and positional trading can yield long-term gains.

Which trading has the highest risk?

Answer Field

Trading types with the highest risk typically include intraday trading, margin trading, and options trading due to their volatility, leverage, and potential for significant losses if market conditions turn unfavourable. Caution and experience are crucial.

How can I choose the right type of trade for my investment goals?

Answer Field

Consider your financial goals, risk tolerance, and the time you can commit to trading.

No Result Found

Read More Blogs

blogimage

Pros and Cons of Investing in Non Convertible Debentures (NCDs)

Discover the benefits and risks of investing in Non-Convertible Debentures (NCDs). Learn why NCDs can be a smart investment choice and explore the pros and cons of NBFC NCDs at BajajBroking!

30 Aug, 2024 | 7 Min. read
blogimage

Efficient Market Hypothesis: Meaning, Limitations & Key Assumptions

Understand what the Efficient Market Hypothesis (EMH) is, to what extent it is applicable in the market, how it can shape your investment strategies.

30 Aug, 2024 | 5 Min. read
blogimage

5 Key Factors to Trigger Stock Market Performance in the Next Few Months in India

We try to identify the crucial parameters that will drive the Indian Equities market during the next few months, in this article. These would be GDP growth, interest rates, corporate earnings, and market sentiment. We will try to understand how to ride the trend and make the right investment decisions.

11 Jul, 2024 | 7 Min. read
blogimage

How is Trading of Private Equities Done in the Equity Market?

Corporate bonds are issued by the company to help to raise funds through public money. Here’s a look at things to consider to make successful bond investments.

07 Jul, 2024 | 6 Min. read
blogimage

How to Invest in the Best Gold Funds & ETFs

Investing in a gold ETF or gold funds has become quite popular in the past few years. There are many benefits that digital gold provides and this is why investors need to know how to invest in gold ETFs to gain higher returns.

07 Jul, 2024 | 6 Min. read
blogimage

What is Quick Ratio and its Meaning?

Learn the meaning of quick ratio and the importance of quick ratio. Understand how to use it while trading.

07 Jul, 2024 | 7 Min. read
blogimage

How to Dematerialize Your Physical Share Certificates?

Explore the process and benefits of dematerializing physical share certificates effortlessly. Learn how to digitize your holdings for a more streamlined and modernized approach to managing your investments.

05 Jul, 2024 | 5 Min. read
blogimage

New Credit Card Bill Payment Rules: HDFC Bank, Axis Bank, and Others

From July 1, 2024, credit card holders from major banks like HDFC and Axis Bank can no longer use third-party apps such as CRED, PhonePe, and Paytm for bill payments. Learn about the new rules and alternative payment methods.

04 Jul, 2024 | 3 Min. read
blogimage

How Do Currency Exchange Rates Affect Investments

Among the many things that determine the value of an investment, currency exchange rates play a huge role. Here’s a look at how exchange rates affect investments in India

02 Jul, 2024 | 4 Min. read
blogimage

Guidelines for the Transfer and Dematerialisation of Re-lodged Physical Shares

SEBI’s mandate to transfer and dematerialise physical shares might have brought a state of confusion. Read on to find the process and steps to be followed.

30 Jun, 2024 | 7 Min. read

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

7.5 Lacs + Users

icon-with-text

4.8+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4800 Cr MTF Book

icon-with-text

Open Account Instantly

Enter the 4- Digit OTP sent to 80808 80808

OTP expires in: 00:59

Open Demat Account

TRENDING CALCULATORS AND STOCKS ON BAJAJ BROKING

ATTENTION INVESTORS:

“Investments in securities market are subject to market risk, read all the scheme related documents carefully before investing."

"Prevent Unauthorized transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL/NSDL at the end of the day. Issued in the interest of investors."

" We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services."  

"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."

"We understand that certain investment advisors may be approaching members of the public including our clients, representing that they are our partners, or representing that their investment advice is based on our research. Please note that we have not engaged any third parties to render any investment advisory services on our behalf nor are we providing any stock recommendations/tips/research report/advisory. Persons making investments on the basis of such advice may lose all or a part of their investments along with the fee paid to such unscrupulous persons. Please be cautious about any phone call that you may receive from persons representing to be such investment advisors, or a part of research firm offering advice on securities. Do not make payments through e-mail links, WhatsApp or SMS. Please do not share your personal or financial information with any person without proper verification. Always trade through a registered broker."

Bajaj Financial Securities Limited is a subsidiary of Bajaj Finance Limited and is a corporate trading and clearing member of Bombay Stock Exchange Ltd. (BSE)  and National Stock Exchange of India Ltd. (NSEIL), and also a Depository participant with National Securities Depository Ltd (“NSDL”) and Central Depository Services Ltd. (“CDSL”).

Bajaj Financial Securities Limited is engaged in the business of Stock Broking and as a Depository Participant.Bajaj Financial Securities Limited does not provide any advisory services to its clients. Bajaj Financial Securities Limited may share updates from time to time (through various electronic communication modes) which are sourced from public domain and the same are NOT to be construed as any advice or recommendation from Bajaj Financial Securities Limited. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.

The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Personal Loan, Fixed Deposit, EMI Card are provided by Bajaj Finance Limited. Bajaj Financial Securities Limited is only a distributor. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Please Note:

  1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020

  2. Update your mobile number & email ID with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

  3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

  4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.

  5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in Vernacular Language: BSE | NSE

If the client wishes to revoke /cancel the EDIS mandate placed by them, they can write on email to connect@bajajfinserv.in  or call on the toll free number.

Advisory for Investors : NSE | BSE

ADVISORY - KYC COMPLIANCE

ADVISORY – PRECAUTIONS FOR CLIENTS DEALING IN OPTIONS

We also do pro-account trading in Equity & Derivatives Segment.

Filling complaints on SCORES - Easy & Quick

A.  Register on SCORES portal B. Mandatory details for filling complaints on SCORES (i) Name, PAN, Address, Mobile Number, E-mail ID C. Benefits: (i) Effective Communication (ii) Speedy redressal of the grievances.

SEBI Registration No.: INZ000218931 | BSE Cash/CDS/F&O (Member ID: 6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403 Research Analyst SEBI Registration No. INH000010043

Compliance officer:

Mr. Harinatha Reddy Muthumula, TEL:  1800 833 8888; Email:  compliance_sec@bajajfinserv.in for DP related to Compliance_dp@bajajfinserv.in , for any investor grievances write to investcare@bajajfinserv.in

DISCLAIMER

STANDARD DISCLAIMER

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403. 

Website: https://www.bajajbroking.in/

RESEARCH DISCLAIMER

Broking services offered by Bajaj Financial Securities Limited | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014| CIN: U67120PN2010PLC136026| Research Analyst SEBI Registration No: INH000010043.

Details of Compliance Officer: Mr. Harinatha Reddy Muthumula (For Broking/DP/Research)|Email: compliance_sec@bajajfinserv.in/Compliance_dp@bajajfinserv.in |Contact No.: 020-4857 4486 |

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

DISCLOSURES

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations) 

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

IPO FINANCING

IPO Financing is done through Bajaj Finance Limited. Bajaj Finance Limited (BFL or Lender) reserves the sole right to decide participation in any IPO and financing to the client shall be subject to credit assessment done by the lender. Also, BFL shall have full rights to decide the commercial terms for IPO and final application and financing shall be subject to all requirements being met by the client in a timely manner including documentation, account setup and payment of required Interest and Margin. Bajaj Finance Limited also reserves the exclusive rights to change any of the above-mentioned terms and conditions without prior notice to clients. The scheme margin is subject to change. UPI is mandatory to bid in all IPOs through our platform. As per exchange guidelines, all the UPI mandates will only be accepted till 5:00 PM on IPO closure day. 

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.