Online stock trading in India?!?

Question

I've been wondering for a while now about how to go about opening up an online bank account with which i can buy/sell stocks online. I mean i want to buy and sell MYSELF, i don't want to go to a brokerage firm. I want to handle my own money myself.

Thanks, AJ

Answer 1

For buying and selling stocks online you need to have following accounts:

(a) Bank Account with online facility - eg. ICICI BAnk , HDFC Bank etc.

(b) Demat and Trading Account  with a broker - e.g. Indiabulls, ICICI Direct etc.

So, in short you can not buy / sell shares online/offline without a broker.

However, you can buy/sell Mutual Funds online without a broker. You end up saving entry load associated the MFs which is generally 2.25 % of investment amount.

To buy / sell MFs online do following:

(a) Choose Asset management Company (AMC) offering online transaction facility (Reliance, Birla, Pru ICICI , HDFC etc. are providing this facility while some like Tata , JM etc. are yet to provide the same). Check the banks supported by AMC for online transaction. Open the bank account with online facility in any such bank.

(b) Download application form from AMCs web site, take print out, fill up the details, enclose PAN card, cheque (preferably payable at par all over India) and submit the application to nearest AMCs office or Investor Service Centre. You will find the details of AMCs offices/ Investor Service Centre on AMCs website. You can also send the appliaction by post to nearest office if the same is not located in your town. Be careful to fill "DIRECT" as broker and sub broker code in application form.

(c) Wait for Account Statement (takes around 2 weeks).

(d) Apply for PIN (Some AMCs provide PIN online through registered mail id eg. - Birla and ICICI while others like Rleiance require a PIN application  which can be downloaded from their web sites)

(e) Start buying/selling MFs online DIRECTLY without a broker.

Hope the info is useful.