What is full form of DP??
Answers: What is DP ?
Depository Participant (in Stock market Parlance)
Double Potential.
In India, a Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI.
SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs. 50 lakh for stockbrokers, R&T agents and non-banking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs; however, depositories can fix a higher net worth criterion for their DPs. NSDL requires a minimum net worth of Rs. 100 lakh to be eligible to become a DP as against Rs. 50 lakh prescribed by SEBI (D&P) Regulations.
While Dipository is:
Basics of Depository
Depository can in many ways be compared to a bank. Securities of the investors are held in electronic / book entry form by the Depository. Apart from holding the securities, Depository also provides services related to transactions in securities. Several consider the Depository to be another custodian. But the depository has an advantage over the custodian- the Depository can transfer the Beneficial Ownership of the Securities, legally, which a custodian cannot do.
Benefits of Depository Bad delivery eliminated Immediate transfer of shares No stamp duty on such transfers Elimination of risks that are normally associated in dealing with Physical certificates - loss / theft / mutilation due to careless handling / forgery / etc. Reduced transaction cost
How do Depository operate
Depository interacts with its clients / investors through its agents, called Depository Participants normally known as DPs.
For any investor / client, to avail the services provided by the Depository, has to open Depository account, known as Demat A/c, with any of the DPs.
Demat Account Opening:
A demat account are opened on the same lines as that of a Bank Account. Prescribed Account opening forms are available with the DP, needs to be filled in. Standard Agreements are to be signed by the Client and the DP, which details the rights and obligations of both parties. Along with the form the client requires to attach Photographs of Account holder, Attested copies of proof of residence and proof of identity needs to be submitted along with the account opening form.
In case of Corporate clients, additional attachments required are - true copy of the resolution for Demat a/c opening along with signatories to operate the account and true copy of the Memorandum and Articles of Association is to be attached.
Services provided by Depository
Dematerialisation (usually known as demat) is converting physical certificates to electronic form Rematerialisation, known as remat, is reverse of demat, i.e. getting physical certificates from the electronic securities Transfer of securities, change of beneficial ownership Settlement of trades done on exchange connected to the Depository Pledge / Hypothecation of demat shares, viz. Loan against shares Electronic credit in public offering of the Companies Non - Cash corporate benefits, viz. Bonus / Rights - direct credit into electronic form
No. of Depository in the country
Currently there are two depositories operational in the country. National Securities Depository Ltd. Central Depository Services Ltd.
It's depository participant such as indiabulls securities etc
DP is one who interacts betn an investor and NSDL/CSDL(depository agency)
Depository Participant.
DP stands for Depository Participant. Any bank like HDFC or ICICI Bank , who offer Depository services are to be registered as a DP with the NSDL or CDSL in India.
I own 124 shares of JBLU JetBlue. What do i do subsequent?
Hey i have 124 shares of JBLU and i hold bought it around 8 dollars and now its 4 so thats desperate. If i sell not a hundred percent lose halfthe money. whats next?Answers: Learn investing (you merely paid for abundant books on it already).
Lesson #5;
Never buy a stock without an exit plan (especially a "stop").
Lesson #6;
Be credible at all times. Never "know" , "think" or "believe" you know what a stock will do.
Lesson #7;Never buy a stock because you judge "well... how far lower could it go"... (is it not dangerous to catch a falling knife)..
Lesson #8; Losing profusely of money is never the "stocks" fault. It's never the market's failure. It's always your shortcoming (look at lesson #5).
Lesson #9; Asking strangers (whose qualifications and motives can never be known), how to invest your money is of late plain.. wrong....
Please learn investing.... or you'll do this again & again....
Lose the reaction you have attached to this ( and any stock). Figure out where on earth it will go from here and gross your decision base upon that.
Basically i want to enter in share market that of what i want to follow?
Answers: As an agent or Investor?
may be you can try this sites:
http://broker-valas.blogspot.com/
http://youbet-on-market.blogspot.com/
http://groups.yahoo.com/group/make_money...
Click on FOOL.com by Dave and Tom Gardner the Motley Fool brothers.
http://www.fool.com/index.aspx
First of all open a Demat account either with a Bank or a Broker (eg ICICI Bank ; http://www.icicidirect.com , Sharekhan; http://www.sharekhan.com , India bulls etc).
Then slowly start investing in IPOs which are relatively safe and give good return on listing. As you go on you will get a feel of market and then you can start investing in secondary market.
Regarding tips, so start watching CNBC TV18, NDTV Profit, CNBC Awaaz and Zee Business. They have very good coverage of stock market, and some of the program discuss stocks in detail where you can even ask questions related to stocks. It helps a lot in deciding where to invest.
Furthermore you can also invest in mutual funds, which donot give as good returns as the market, but the risk component is very less and the returns are quite decent.
You can also go through the following websites to get more info on share market
http://www.rupya.com
http://www.chittorgarh.com
http://www.valueresearchonline.com
http://www.moneycontrol.com
Open a demat account and trading account with any of the Broker. The u can start trading stocks