How do I operate my account?

You can conveniently operate your Canmoney account through multiple channels:
Mobile App: Trade on the go using our Canmoney mobile application.
Website: Access your account anytime at canmoney.in
Call 2 Trade: Prefer trading over the phone? Use our Call 2 Trade facility by dialing our toll-free number 1800 103 1369 or call 022 4360 3871 – 75.

How I get the Login Id, Password, TPIN?

Once your account is open the welcome kit it received to you on your registered mail id. With details of Login ID / Trading A/c No., address, DP ID, PAN No, Demat Account No, Registered Mobile No, Registered Email ID, some important links and documents that may be useful to you as a valued client. all the department number we have provided to welcome kit.

What's your Login ID?

Your Login ID is a 9-digit Trading Account Code that starts with '0'. This code is used to log in to your Canmoney trading account.

What's your Demat Code?

Your Demat Code is a 8-digit Code. This code is used to log in to the NSDL portal for holdings related details.

What's the TPIN?

TPIN stands for Telephonic PIN. It is a unique 4-digit code used to access the Dial2Trade facility for placing orders over the phone.

How to trade on Canmoney website and application?

You can learn how to trade on the Canmoney platform by watching our step-by-step video tutorials available on our official YouTube channel. 👉 Click here to access our Online Trading video library

I want to buy some shares. I do not have any money in my Bank Account. What do I do?

Please deposit a cheque/cash in your Bank Account by filling the pay-in slip. In case of a cheque, the money should come into your Bank account as soon as the cheque is cleared. Once you have funds in your bank account, you need to allocate the required amount to trading account. If you place the intraday order then margin you can use the same day but if it is cash and carry order of sell then than margin can not be use on same day than can be useful for next day buying. And for IPO there is no need to transfer the amount from saving account to demat account the funds can directly hold form your saving account.

Can I borrow or get a line of credit against my Demat Account?

For this you can contact your bank branch who would guide you on the norms for availing loans against shares.

On which exchanges will I be able to buy and sell shares?

CBSL offers its customers to execute their trades on NSE and BSE.

What kind of orders can I place?

You can place both market and limit orders.
Limit Order is an order to buy or sell securities in which you specify the maximum price per unit in case of a Buy order and the minimum price per unit in case of a Sell order. The actual transaction can be at the specified price or a price more favorable than the price specified.
Market Orders have different interpretations for both NSE and BSE.
Market Orders in NSE: This is an order to buy or sell securities at the best price obtainable in the market at the time it is matched by the exchange. Therefore, chances of its getting executed are better. In case of market orders for NSE, all market orders placed which are not executed become limit orders at the last traded price. Where a market order is not executed fully, it becomes a limit order for the balance quantity at the last traded price.
Market Orders in BSE: In case of market orders placed on BSE, all buy market orders go to the Exchange with the price of the best offer and all sell market orders go to the exchange with the price of the best bid. In case at that point of time it is found that that particular bid or offer is no longer present in the exchange this market order gets cancelled by the exchange. In case of part execution of market order, the remainder order gets converted into a limit order at the last executed price.
Market orders can be placed only during market hours (i.e. when the Exchange is open for trading)

What is a Disclose Quantity (DQ) order?

Normally, the order quantity is disclosed in full to the market. An order with a Disclosed Quantity (DQ) condition/attribute allows the Trading Member to disclose only a part of the order quantity to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displayed to the market at a time. After this is traded, another 200 is automatically released and so on till the full order is executed. DQ (Disclosed Quantity) should not be less than 10% of the Order Quantity and at the same time should not be greater than or equal to the Order Quantity.

Which shares will I be able to buy and sell?

You will be able to buy and sell all shares in the Cash Segment that are traded in the compulsory dematerialised form on the exchanges. For the leveraged products (Intraday), CBSL will allow trading only in approved securities namely BSE A group scripts whcich are in F&O Segment of NSE. The list of approved securities is subject to change from time to time.

Do I get online confirmation of orders and trades?

Yes. You get online confirmation of orders and trades. The status of order / trade is updated on real-time basis in the Activity Log / Pending Order / Trade Log.

Can I modify my order?

Yes. You can modify an order any time before execution. You can do this by accessing the Pending Order and clicking on the hyperlink for 'Modify' against the order which you wish to modify. However, you cannot modify your order while it is queued with the exchange, i.e., confirmation is awaited from the exchange for the acceptance of the placement of any order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified.

Can I cancel my order in the system?

Yes. You can cancel an order any time before execution. You can do this by accessing the Pending Order and clicking on the hyperlink for 'Cancel' against the order which you wish to cancel. In case the order is already partly executed, only the unexecuted portion of the order can be cancelled.

Can I enter orders after the trading hours? What happens to such orders?

Yes. You can enter limit orders after trading hours by clicking on the AMO button. Orders placed after trading hours are queued in the system and are sent to the Exchange whenever the Exchange next opens for trading. In the pending Order Book, the status of such orders is shown as 'Accepted'.

Do I need to have money before buying of shares?

Yes. You need to have money in your Bank account duly allotted in favour of CBSL before placing an order. Alternatively if you have sold some shares, the sale proceeds can be used to buy the shares you want.

Can I go short?

Yes, you can go short in the 'Intra Day Trading (IDT)' or ‘Stop Loss Trading (SLT)’ provided you have allocated adequate margin. However, such Sell positions need to be Squired off before the specified time before the end of the day. You cannot go short under Cash and Carry (CNC). Here, you can sell only those shares which are in your demat account and allocated to CBSL for trading.

How will I be informed of my trade execution?

The trade executions are confirmed online and the Trade Log is updated immediately. Trade Log provides the complete details of executed trades. Further, digitally signed contract notes will be sent by email at the end of the day.

What is a contract note?

Contract note is a statement of confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member (CBSL) and client in respect of the trades stated in that contract note. For Internet trading clients, the contract notes are digitally signed and sent to their email id.

Can I trade on margin?

You can trade on margin under our product called Intra Day Trading (IDT) and Stop Loss Trading (SLT) in the securities allowed under this product.

What is a PCAS Session?

A PCAS (Pre-Open Call Auction Session) is a trading session held before the market opens, allowing price discovery for specific stocks through a call auction mechanism. It's primarily used for illiquid securities or those under surveillance. Click here for more details.

What is ASM (Additional Surveillance Measure)?

ASM is a regulatory framework introduced by SEBI and the stock exchanges to monitor stocks showing signs of unusual volatility or price movement. It aims to protect investors and ensure market integrity. Click here for more details.

What is GSM (Graded Surveillance Measure)?

GSM is a SEBI-initiated framework to curb speculative trading in securities with abnormal price movements. Stocks are placed under different stages, with increasing surveillance at each level. Click here for more details.

What is ESM (Enhanced Surveillance Measure)?

ESM targets micro and small-cap companies (market cap less than ₹500 crore) to promote transparency and investor awareness. Stocks under ESM are flagged for closer scrutiny based on specific criteria set by SEBI and exchanges. Click here for more details.

What is ASD (Additional Surveillance Deposit)?

ASD is a regulatory deposit collected by stock exchanges under the ASM framework. It acts as a safeguard against speculative trades and is typically a percentage of the transaction value. The amount is refundable within 30 to 45 days.

When is ASD Applicable?

ASD is levied when a stock falls under certain surveillance categories:
GSM Stage 2: 50% ASD
GSM Stage 3 & 4: 100% ASD
IBC (Insolvency and Bankruptcy Code) Stage 1 & 2: 100% ASD

What is Equity Investment?

Investing in equity shares involves purchasing ownership stakes (shares) in a company listed on a stock exchange. As a shareholder, you are entitled to a portion of the company’s earnings, which can be in the form of dividends or capital gains.
Equity investment is generally considered high-risk, high-return because share prices can fluctuate based on company performance, market conditions, and economic factors. However, equity forms an essential part of a well-diversified investment portfolio, offering the potential for significant long-term growth.

Markets for Equity Investment

There are two primary markets for equity trading:

• Primary Market:
  

  The Primary Market is where new securities are issued, typically through Initial Public Offerings (IPOs). When a company lists its shares on a stock exchange for the first time, investors can buy shares directly from the company.

• Secondary Market:
  

  The Secondary Market is where previously issued shares are traded among investors. Transactions occur through stock exchanges (like NSE and BSE), with the help of brokerage firms that facilitate buying and selling.

To trade in the secondary market, investors need a trading account (with a brokerage firm), a demat account (for holding shares electronically), and a bank account (for cash transactions).

Risk and Return in Equity Investment

Equity is often categorized as high-risk, high-return. While there is potential for considerable capital appreciation, there is also the possibility of losses. Key factors influencing equity prices include:

• Company performance (profitability, growth prospects, etc.)
• Market conditions (demand-supply dynamics, sentiment)
• Economic factors (inflation, interest rates, political stability)

Although equity investments carry risk, over time, they tend to outpace inflation and deliver higher returns compared to other asset classes like bonds and savings accounts.

Why Invest in Equity?

Experts recommend incorporating equity investments into your portfolio due to their potential for high returns, especially over the long term. Some reasons why equity is beneficial:

• Capital appreciation: Historically, equities have outperformed most other asset classes over the long run
• Dividend income: Many companies distribute a portion of their profits to shareholders as dividends
• Portfolio diversification: Equity investments help diversify risk and provide higher growth opportunities within a balanced portfolio.

However, the proportion of equity in your portfolio should be based on your investment goals, time horizon, and risk tolerance

Key Considerations Before Investing in Equity

Investing in equities requires thoughtful planning. Here are key points to consider:

• Research: Shortlist companies based on their fundamentals, financial health, and growth potential.
• Price Valuation: Avoid overvalued stocks. Look for stocks with potential for future growth at reasonable prices.
• Entry and Exit Strategy: Predefine entry and exit points based on your financial goals and risk appetite.
• Monitor and Rebalance: Regularly assess the performance of your investments. Be open to liquidating positions if the market or your circumstances change.

Determining Stock Prices

Stock prices are influenced by two key factors:

• Demand and Supply: When demand exceeds supply, prices rise. Conversely, when supply exceeds demand, prices fall.
• Growth Potential: Stocks of companies with high growth prospects often command a premium. The market tends to value stocks higher if investors believe the company will expand its revenues and profits.

How to Invest in Equity?

To invest in equity, you need to set up the following accounts:

• Trading Account: Through a registered brokerage firm (e.g., NSE, BSE members).
• Demat Account: To hold the shares electronically, typically with depositories like NSDL or CDSL.
• Bank Account: For the transfer of funds related to your investments.

Once you have these accounts, you can place buy/sell orders through your broker or a trading platform.

Risks in Equity Investment

Equity investments are exposed to various types of risks:

• Business Risk: Associated with the company's financial performance and management.
• Market Risk: The overall risk that stock prices might fall due to economic or geopolitical events.
• Industry Risk: Certain sectors may be more vulnerable to changes in technology, regulation, or market demand.
• Political and Economic Risk: Factors like elections, government policies, and global economic events can impact stock performance.
• Liquidity Risk: The risk that an investor may not be able to buy or sell a stock easily at a desired price due to limited trading volume.

Understanding Marked-to-Market (MTM)

Marked-to-market (MTM) refers to the process of valuing a security at its current market price rather than its historical cost. In derivatives trading, MTM reflects the daily gains or losses based on the price movements of the underlying asset.

Hedging, Arbitrage, and Speculation

• Hedging: Hedging involves taking a position in financial instruments to offset potential risks in an existing investment. It is akin to insuring an investment against potential adverse price movements.
• Arbitrage: This strategy exploits price differences for the same asset across different markets. Traders buy at a lower price in one market and sell at a higher price in another, profiting from the price discrepancy.
• Speculation: Speculation is taking positions in assets based on expectations about future price movements. Unlike investing, speculation typically involves higher risk and short-term focus.

Common Investment Terminology

• Long Position: Buying a security in anticipation that its price will rise.
• Short Position: Selling a security you do not own, betting that its price will fall.
• Stop-Loss: A strategy to limit potential losses by setting an automatic order to sell a security if its price falls below a certain level.
Derivatives: Futures and Options
• Futures Contracts: Futures are standardized contracts to buy or sell an asset at a future date at a predetermined price. These contracts are cash-settled or settled through the delivery of the underlying asset.
• Option Contracts: An option gives the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price before a specified expiration date. These contracts can be exercised or assigned on the expiration date.
• Index Futures & Options: These derivatives derive their value from market indices such as NIFTY or Sensex. They are cash-settled as the index itself cannot be physically delivered.
Exchange-Traded Funds (ETFs)

An ETF is a type of fund that holds a basket of assets (stocks, bonds, etc.) and trades on an exchange, much like a stock. ETFs track the performance of an index, such as the NIFTY or Sensex. ETFs are cost-efficient and provide diversification, making them suitable for long-term investors.

Key Takeaways and Best Practices
• Research Before You Invest: Always do thorough research on the stocks, their market trends, and financials.
• Diversification: Spread your investments across various assets to reduce risk.
• Follow a Systematic Approach: Maintain a disciplined investment strategy with predefined goals and timelines.
• Use Technology: Leverage online platforms, real-time data, and advanced tools to monitor your investments.