SATCO CAPITAL MARKETS LTD.("WINDOW TO THE WORLD OF INVESTMENT OPPORTUNITIES")

A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered depository participant. It also provides services related to transactions in securities.

A Depository Participant (DP) is an agent of the depository and is authorized to offer depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. can become DP with a depository.

• Central Depository Services (India) Limited (CDSL) Promoted by BSE, BOI, BOB, SBI and HDFC Bank
• National Securities Depository Limited (NSDL) Promoted by UTI, IDBI and NSE

The services performed by the Depository Participant are listed below:

• Account Opening & Maintenance
• Dematerialization of Securities & Mutual Funds
• Rematerialization of Securities & Mutual Funds
• Transfer of Securities & Mutual Funds
• Pledging / Unpledging / Invocation of Securities
• Freeze/ Un-Freeze account
• Account Modification
• Account Closure
• EASI Facility (For CDSL DP)
• Registration of RGESS (Form A) & Release of Stock from RGESS (Form B).

In case you purchase or sell the shares the same is credited or debited from your demat / Trading account T+2 settlements.

CM BP ID stands for Clearing Member Business Partner ID. The client gets the CM BP Id from the clearing house at the time of registration.

In case you have sold some shares in the market then you need to ensure that the shares are transferred from your demat account to Pay in account of clearing house or from the broker pool account to the clearing house before 10:30 am on pay-in day.

On the base of POA (Power of Attorney) given & Signed by client at the time of account opening or Separately, SATCO Can debit the shares from client’s demat account to settle the pay-in obligation.

Delivery Instruction Slip (DIS) is an instrument to get shares transferred electronically from one account to another within the same Depository or Inter-Depository and also to respective Exchanges for pay in purpose. Clients who have not provided POA a manual DIS slip has to be duly executed and submitted to SATCO.

• You can send the requests of transferring shares from one Demat account to another by filling Delivery Instruction Slip (DIS).
• You can submit the DIS at your nearest branch or send directly at the below mentioned address:
• Submit the documents at the below address:
  
  DP Department Satco Capital Markets Limited 17, Nobel Chambers, Ground Floor, Janmabhoomi Marg, Fort, Mumbai-400001

Any transaction involving delivery of securities to a clearing corporation / Clearing House for sale of securities done on a stock exchange platform is termed as ‘On Market’ transaction.

Off Market transaction is one which is settled directly between two persons where Clearing Corporation / Clearing House is not involved

• For issuance of a new Delivery Instruction Book, you need to submit a Physical copy the Signed DIS Requisition slips from the Existing DIS Booklets.
• If the DIS is lost or stolen, you need to submit the DIS requisition form. (Click here to download).
• Submit the self-attested PAN card copy or any other identity proof.
• You can submit the documents at your nearest branch or to RM or send directly at the below mentioned address:
  
  Department Satco Capital Markets Limited 17, Nobel Chambers, Ground Floor, Janmabhoomi Marg, Fort, Mumbai-400001
• Identity proof of the third party submitting the DIS slip is mandatory

Securities held in a depository account can be pledged to avail of loan/credit facility. Pledge of securities in CDSL/ NSDL depository requires that both the borrower and the lender should have account within a same Depository either in NSDL or CDSL

• If you want to pledge your shares with the bank then you will have to make an agreement with the bank.
• After the agreement is done, an agreement number is mentioned in the Pledge Request Form which has to be sent to DP
• Pledgor and the Pledgee must have a beneficial account with the same depository as interdepository pledge is presently not permitted
• DP department once verifies the request form their end & Initiate the Pledge creation. Then after Pledgee (Counterparty Account holder) requires Accept/Confirm the pledge creation on the basis of Generated Pledge Order no. to complete the Pledged Transaction. Pledged shares remain in Pledgor’s demat account under the Pledged lock in status which is nontransferrable till Pledged shares is closed/Released.
• For pledging the shares entire stock has to be there in your bank account. Partial pledging will not allowed.

Un-pledge of securities is release of securities from Pledgee on repayment of the loan/credits by the pledgor.

• If you want to un-pledge shares, you need to submit an Un-pledge Request Form to DP.
• DP will first check the pledge sequence number which is mentioned on the Un-pledge form & initiate the Pledge Closure request.
• If bank/ pledgee confirm the closure request vide pledge sequence number then those shares are unpledged in Pledgors demat account in free balance

SATCO sends DP Transaction + Holding + Bill statement (monthly) to your registered email id.

Dematerialization is the process by which you can get physical share certificates converted into electronic form.

You need to submit Dematerialization Request by sending a duly filled up Dematerialization Request Form (DRF) to the DP along with the original certificates of securities to be dematerialized. If the shares are held in maiden name then the client needs to submit marriage certificate along with DRF. You need to submit DRF which you will receive from your nearest branch or HO.

• Transposition means to change the order of holders of the shares i.e. the first holder may become second holder or third holder and vice versa.
• So if name of the holders in demat account and physical form is not in order then transposition form must be filled.
• For E.g.: The securities held by A B & C can be dematerialized in an account opened in the combination of A C & B, B C & A, B A & C, C A & B, and C B & A by submitting a transposition form with the demat request form.
• Click here to download CDSL Transposition form

Transmission is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder by Submission of Notarized death certificate along with the relevant legal documents. If the account is joinlty held and one of the joint holder is deceased than shares will be transmitted to the single holder/ surviving holder.

Rematerialization is the process by which you can get your electronic holdings converted into physical certificates.

Transfer of securities from an account in one depository to an account in another depository is termed as an inter-depository transfer.

EASI: This is a facility introduced by CDSL for the clients to view holdings and transaction directly on https://www.cdslindia.com

You need to submit Rematerialization Request by sending a duly filled & singed Re-materialization Request Form (RRF) by account holder (s) to the DP on the below :-

To, SATCO Capital Markets Ltd, 17, Nobel Chambers, Ground Floor, Janmabhoomi Marg, Fort, Mumbai-400001

You can download the Re-materialization Request form (RRF) from the below link or coordinate with your branch for the Remat Request form. CDSL :

You have to submit a demat closing form to your DP to close your account. If the account is jointly hold signatures of all the holders in the closing form is mandatory.

If the client has 2 Demat accounts in two separate DPs the client can transfer the stock from one DP to another without filing the DIS slip.

The client has to submit the client master form from DP where your account is to be transferred along with an account closing form. The client master form should bear the rubber stamp of the DP and must be duly signed by the DP official.

We can apply in IPO through ASBA (Applications Supported by Blocked Amount) only.

For applying for IPO/OFS below given details should filled properly-

• Demat Account Number
• ASBA bank account details(number)
• Price
• Amount
• Signature of client.

DP details are mentioned online at TECH EXCEL website after login under My Profile

The abbreviation of ASBA- Applications Supported by Blocked Amount. It is a process developed by the India’s Stock Market regulator SEBI for applying to IPO. In ASBA, an IPO applicant’s account doesn’t get debited until the shares are allotted to them.

An individual investor can apply through ASBA in public issue through book building route-

• Residential retail individual investor i.e; applying for shares/securities up to 1,00,000.
• Bidding at cut-off, with single option as to the number of shares bid.
• Applying through blocking of funds in a bank account with the SCSB.
• not to revised his/her bid.
• not bidding under any of the reserved category

SEBI has permitted ASBA process in rights issue on pilot basis. All shareholders of the company as on record date are permitted to use ASBA for making application in rights issue provided

• Holding shares in dematerialised form and has applied for entitlements or additional shares in the issue in DEMAT form.
• not renounced its entitlement in full or part.
• not renounce to the issue.
• apply through bank account maintain with SCSB’S (Self Certified Syndicate banks).

In list of SCSB’S (Self Certified Syndicate banks) and their designated branches i.e; branch where the ASBA applications are submitted, available in website of BSEwww.bseindia .com and NSE- www.nseindia.com and in website of SEBI- www.sebi.gov.in. The same would also be given in the ASBA application form.

An allotment mail will be sent on the registered email id on the day of allotment or prior to listing. Shares will be credited to Demat account number mentioned on the application form.

Mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Investors are allotted units for their investments, and unit holders share the resulting profits and losses in proportion with their investments. Since the pooled resources are invested in different securities, risk gets diversified and since the investments are done by an experienced, professional fund manager, investors are assured significantly better returns at relatively low risk. From time to time, mutual funds come out with different schemes that have varied objectives. And to be eligible to solicit funds from investors, it is necessary that mutual funds be registered with the Securities and Exchange Board of India( SEBI).

Investor who don’t have the time to study and monitor the market constantly, or the deep understanding of the financial market, a Mutual Fund offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Mutual funds are a vital tool to ensure your financial well-being. They help you to get better returns even from relatively smaller investment amounts, and are quite flexible in nature. Whether you want to invest a small amount at regular intervals or a big lumpsum amount at once, you will find a mutual fund product suitable for your needs. With options like SIP (Systematic Investment Plan) and SWP (Systematic Withdrawal Plan), mutual funds can help you plan for short-term as well as long-term goals and financial liabilities

• Returns and Risk analysis – When you invest in a single security, your profit depends on how that company fares. However, mutual funds invest in a group of companies, so the performance gets averaged. Even if one of them does not do well, performance of the other companies makes up for it. And because mutual funds invest a large pool of resources together, even the returns are significantly higher than individual investments.
• Affordability – Mutual funds are affordable financial investment tools as you can invest in them and create wealth even if you have relatively smaller amounts of money to begin with.
• Expert Guidance – Your funds are invested by a professional manager who studies financial markets, analyses trends and understands the potential of companies in different sectors. So you can be assured that your money is being invested thoughtfully, to maximise returns.
• Transparency – When you invest in a mutual fund, you have a right to know every detail of where and how your money is being invested and can track the performance of the fund on a periodic basis.
• Availability of money – If you invest in an open ended mutual scheme, your money continues to earn you returns and is still available for use when you need it. You can withdraw your money any time you want to. And if you have invested in a close ended scheme, you can sell off the units, at current market rates, on the stock exchange where they have been listed.
• Tax Benefits – There are some mutual fund schemes whose returns, in the form of dividends, are tax free. So you can invest and create wealth without needing to pay a tax on that income. However, since this may not be the case for all schemes, it is important to understand the tax benefits of a fund before you invest in it.
• Regulated by SEBI – All mutual funds are regulated by the Securities and Exchange Board of India. They function in accordance with the provisions and regulations that protect the interests of investors and prohibit fraudulent and unfair practices.

There are three ways in which you can classify mutual funds, according to their according to their structure, their objective and the sectors they invest in. Here’s a quick round-up of mutual fund categories for all three classifications.

• Open Ended Schemes: Schemes without a fixed maturity period, that let you subscribe for or redeem units any time. They offer the benefit of liquidity
• Close Ended Schemes: Schemes with a fixed maturity period, which are open for subscription for a specified duration during the launch, and allow you to invest in them from 3-10 years. After the launch, interested investors can buy or sell units of the scheme on stock exchanges where they are listed. As an exit route, closed mutual funds necessarily have to offer either a repurchase at market value, for a specific time frame or allow trading of units on stock exchanges.
• Interval Schemes: A combination of open ended and close ended schemes, interval schemes are open for sale and repurchase only during a specific duration.

• Growth Schemes: Schemes that invest in equities and are designed to offer maximum growth over medium and long term, ideal for investors who are in their prime earning years. These schemes are comparatively high risk, and offer investors options like capital appreciation and dividend option.
• Income Schemes: These schemes invest in fixed income securities, are less risky, and a good option for investors who want to generate steady income streams.
• Balanced Schemes: Investments are done in equity and debt securities to generate regular income and moderate growth. They invest 40% and 60% in equity and debt respectively, and their NAVs are likely to be less volatile than those of pure equity schemes.
• Liquid Schemes: Safe, short term instrument investments to generate quick returns while still offering liquidity. Returns on these schemes fluctuate much less as compared to other funds and they are a good option for individual investors who want to park their surplus funds.
• Gilt Funds: For investors who are looking for extremely safe investments, these schemes invest only in government bonds and securities. While these schemes have no default risk, their NAVs still fluctuate as a result of change in interest rates and other economic factors.
• Tax Saving Schemes: Investments in funds that offer tax deduction or whose returns in the form of dividends are not taxed. These tax rebates are offered by the government to incentivize investments. The funds are mainly invested in equities and growth and opportunities associated with tax saving schemes are similar to those of equity schemes.
• Index Funds: These funds invest exactly according to the portfolio and weightage of a specific stock exchange index. Their NAVs rise and fall according to the changes in the index, with a slight difference in percentage. These could also be Exchange traded Funds (ETFs), which get traded on stock exchanges.

• Sector Specific Funds: Invest in funds of companies based on certain sectors that are booming or are expected to do well in light of the prevalent market situations. The returns of these funds depend on how the sector performs, and it is important to track sectors carefully, or seek help from an expert while investing in these funds. Though high on returns, these funds tend to be more risky as compared to diversified funds.

Investors have varying investment needs. To meet this, Mutual Fund offers various investment plans like.

• Growth Option- Dividend is not paid-out under a Growth Plan and the investor realises only the capital appreciation on the investment.
• Dividend Payout Option- Dividend are paid-out to investors under a Dividend Payout Option. However, the NAV of the mutual fund schemes falls to the extent of the dividend payout.
• Dividend Re-investment Plan- The dividend accrued on mutual fund is automatically re-invested in purchasing additional units in open-ended funds
• Insurance Plan- These schemes offer insurance cover as part of the investment to investors.
• Systematic Investment Plan (SIP)- Investors are given the option of giving postdated cheques (or a direct debit of the bank account) in favour of the fund. The investor is allotted units on a pre-determined date specified in the Offer Document at the applicable NAV.
• Systematic Encashment Plan (SEP)- It allows the investors the facility to withdraw a pre-determined amount/ units from his fund at a pre-determined interval. The investor’s units will be redeemed at the applicable NAV as on that day.

An investor can save on taxes by investing under the following section of the Income Tax Act, 1961.

• Section 80 C (Investment avenues are discussed below in detail)
• Section 80D (Health Insurance premium etc.)
• Section 80E (Educational loan)
• Section 80G (Donation to specified institutions)
• Section 80U (deduction for handicapped person)
• Section 24 (Housing loan interest)

Under Section 80C for tax deduction an individual could invest up to a maximum limit of Rs. 1 Lakh in one or more of the following options put together:

• PPF (Public Provident Fund)- under this scheme the maximum investment permissible in a financial year is Rs.70,000
• EPF (Employees Provident Fund)
• Life Insurance Premium
• Pension Plan Premium (under Sec 80CCC)
• ULIP
• ELSS (Equity Linked Savings Schemes)
• NSC (National Savings Certificate)
• 5 year Bank Fixed Deposits
• 5 year Post Office Time Deposits
• Infrastructure Bonds/ NABARD Rural Bonds
• NPS- New Pension Schemes (under Sec 80CCD)

Net Asset Value (NAV) is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.

Load is a charge collected by a mutual fund when it sells units. It can be levied as an Entry load (i.e, the charge is collected when an investor buys the units) and as an Exit load (i.e, the charge is collected when the investor sells back the units). Schemes that do not charge any load are called No Load Schemes.

You can turn to any of these for updates on mutual fund schemes that are open for investments.

• Advertisements in leading newspapers
• Websites of mutual fund companies
• Agents and distributors of mutual funds
• Banks and post offices that function as distributors of mutual funds

Remember that banks and post offices are not responsible for the performance of the funds they distribute and it is always advisable to track performance of funds before investing rather than relying on agents and distributors who give you gifts or incentives to invest in a particular fund.

To decide which scheme you should invest in, understand your investment goals and match them to the objectives and expected returns and previous performance track record of the mutual fund scheme you are considering. Begin by answering these simple questions for yourself and then reaching out to a financial expert for guidance.

• What is your age?
• How much money can you invest?
• For how long can you invest the money?
• How often do you need the returns?
• How much risk can you handle?
• Do you need to save tax?

Read the offer document carefully, track the past performance of the scheme, compare it with others in its category and evaluate the quality of the securities that the scheme is planning to invest in.

Your risk-taking capacity, age, financial position, income and liabilities will determine the ideal debt and equity investment proportion for you. You can assess these using different tools and calculators as well as get a financial advisor to guide you. Many times, your mutual fund agents and distributors could help you out as they are more aware and clued in to fund and market performances.

What are the things I should check for before investing in a particular fund of my choice-

• As a start, read the objective of the fund and see that is matches your investment goals.
• Then check your scheme document for details on how the investment is being planned, on what basis are the securities being decided and what the overall logic and thought process behind the fund’s investment strategy is.
• Once you are convinced of the strategy, track the past returns of the fund to see how the strategy has worked and how the fund has performed in different market situations. While this does not guarantee future performance, it gives you a fair estimate.
• Mutual funds are not without risks, and fund managers will often diversify their portfolio to minimise risks and maximise returns. Read the scheme information document for information on risks.
• Diversify your investment portfolio and don’t invest all your money in a single fund.
• When choosing different funds to invest in, allocate your money in growth as well as income schemes, based on your age, income and risk handling ability.

While determining which scheme to invest in, the NAVs and the resulting number of units available for a certain price are irrelevant to the decision. Always opt for a scheme which is professionally managed and belongs to a mutual fund whose schemes have performed well in the past. Number of units that you will be able to buy should not be a consideration factor because it is possible that two schemes with the same rates of return will offer you the same amount of returns even if the number of units purchased is different. Remember that if a new scheme offers units at a price of Rs. 10 and an existing one offers units at Rs. 90, your decision to invest should still be based on the professional management of the fund and the experience and qualifications of the fund managers.

Mutual fund companies can mobilise funds from investors only after they register with SEBI. If the companies do not come under the purview of SEBI, they are not legitimate mutual fund companies.

The net worth of a sponsor for a period of three years is mentioned in the offer document only to give investors an idea of the track record of the company sponsoring the fund. In no way does it guarantee higher returns or imply that the sponsor will compensate in case the NAV of the scheme falls.

Yes. You can. All details about the regulations and procedures for NRI investments in a particular scheme are available in the offer document of that mutual fund scheme.