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Frequently
Asked Questions (FAQ)
CSL
Account
Q.
What is unique about CSL account?
A. Your CSL account is
more than a brokerage account. It offers you a unique
3-in-1 feature, which integrates your Brokerage, Bank and
one or more Demat accounts. This means that you can buy
and sell shares and forget about the hassles of
settlements. Transfers of shares from/to your Demat
account and transfer of money from/to your Bank account
take place automatically with no paperwork. Online
investing is just a click away and settlements is no
longer a problem.
Q.
Can I have multiple
Demat Accounts linked to ‘netashare’ account?
A. No.
Q.
Can I have multiple
Bank accounts linked to ‘netashare’ account?
A. No, as of now you
can only link one Bank account to your account.
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Becoming
A Customer
Q.
Who is eligible for
this service?
A. All resident
Indians are eligible to avail of this service.
Q.
How do I become a CSL
customer?
A. You can open a CSL
account by filling a single application form. This form
will help you open a CSL Brokerage Account along with a
Bank Account and one or more Demat accounts as required.
Q.
How do I request a
form?
A. You can request our
representative to visit you by registering online through
our website. You could also visit any of the CSL Bank
Branches / Centres, where our trained personnel help you
in becoming CSL customer. Alternatively you can request us
for a form by sending us e-mail at helpdesk@consortiumsecurities.com
and our relationship manager will contact you to complete the initial
account opening formalities.
Q.
I have sent in my
application, what happens next?
A. You will be
contacted by our representative.
Q.
How do I know my
application has been accepted?
A. As soon as your
application is accepted, we will inform you by e-mail and
mail. In case, you login and your application has been
accepted, you will be prompted to change your password.
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Bank
Account/Demat Account
Q.
What type of Bank
Account can I use with my account?
A. You will need an
ordinary savings account for your account. You can specify
the account in the form and it will be linked with your
account.
Q.
How frequently will I
be able to know the status of my accounts?
A. The status of your
Bank, Demat and CSL account shall be available to you
completely online 24 hours a day through the Internet. You
will be able to access all details regarding your orders
and trades on the website. You will be able to see the
results of your trade reflected in your Bank and Demat
account on the very day of the settlement, without waiting
for the statements from the DP and the Bank.
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New
CSL Customers
Q.
I have deposited a
cheque but I am still not able to place a purchase order:
A. Please check your
Bank balance to find if you have adequate money in your
Bank account. It is possible that there could be some
delays in clearance of the cheque.
Even if you
have adequate money in your Bank account you will get
limit only after you allocate some money for trading or
investment.
Q.
Can I withdraw the
amount allocated for trading?
A. The way you can
allocate funds for trading, you can always reduce the
amount allocated by you for trading to the extent that the
amount allocated has not been blocked on account of orders
placed by you. Once any amount is deallocated, it can be
withdrawn from the bank.
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Online
Investing
Q.
On which exchanges will
I be able to buy and sell shares?
A. CSL offers its
customers execution capability on the National Stock
Exchange of India Ltd. (NSE) and Stock Exchange of Mumbai
(BSE).
Q.
Can I modify my order?
A. Yes, you can modify
an order any time before execution. You can do this by
accessing the Order Book page 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.
Q.
Can I cancel my order
into the system?
A. Yes, you can cancel
an order any time before execution. You can do this by
accessing the Order Book page 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.
Q.
Can I enter orders
after the trading hours? What happens to such orders?
A. Yes, you can enter
limit orders after trading hours. Orders placed after
trading hours are queued in the system and are send to the
exchange whenever the exchange next opens for trading. In
the Order Book, the status of such orders is shown as
'Requested'.
Q.
Do I need to have money
before buying of shares?
A. Yes, you need to
have money in your Bank account before placing an order.
Alternatively if you have sold some shares, the sale
proceeds can be used to buy the shares you want.
Q.
Can I go short?
A. Yes, you can go
short in the 'Margin Segment’. However, such Sell
positions need to be closed out before the specified time
before the end of the settlement. You cannot go short in
the Cash Segment'. Here, you can sell only those shares
which are there in your demat account.
Q.
What is a contract
note?
A. 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 and
client in respect to the trades stated in that contract
note. Contract notes are made in duplicate, where the
member and client both keep one copy each.
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Settlement
Of Trades
Q.
I have bought some
shares but shares have not come into my demat account?
A. The shares will
come into your demat account at the time of settlement.
Hence you can expect the shares to come into your Demat
account on Pay-Out of securities (i.e. T+2). In case you
do not receive the shares, it may be due to the stock
being in 'No Delivery' period. In this case the shares
will come from the exchange after the 'No Delivery' period
is over which could be 1-2 weeks away. The date on which
the shares are to be credited to your Demat Account is
indicated on the Order verification screen which comes up
on submitting a Sell order. Alternatively, it is possible
that the shares may not have come from the exchange
because of short delivery by the counter party (selling
broker). In this case, the exchange conducts an auction to
buy the shares (to the extent delivered short by any
broker) from the open market and the shares may be
received a few days later. If the shares are not received
in an auction also, the exchange suitably charges penalty
from the person liable to deliver the shares. You are
suitably compensated and the consideration is remitted to
you as soon as it is received from the exchange.
Q.
I have sold some shares
but the payment has not come into my bank account?
A. The amount will be
come into your bank account at the time of settlement.
Hence, generally you can expect the amount to get credited
to your bank account on T+2.
At times, however, the share may be in 'No Delivery' and
hence the payment may be received only after the 'No
Delivery Period' is over, which might be 1-2 weeks away.
The date on which amount is to be credited to your account
can be checked from the 'Security Projections' page.
Q.
What is a short
delivery?
A. Short delivery
refers to a situation where a client, who has sold certain
shares during a settlement cycle fails to deliver the
shares to the member either fully or partly.
Q.
What is an auction?
A. An auction is a
mechanism utilised by the exchange to fulfil its
obligation towards the buying trading members. Thus, in
case for a settlement, the selling trading members have
delivered short, their deliveries are bad or they have not
rectified the company objection reported against them, the
exchange purchases the requisite quantity from the market
and gives them to the original buying member. Auctions are
generally held on Friday.
Q.
What factors give rise
to an auction?
A. There are three
factors, which primarily give rise to an auction:
1. Short deliveries
2. Un-rectified Bad Deliveries - this is relevant only in
respect of shares in physical form
3. Un-rectified Company Objections
Q.
What happens if the
shares are not bought in the auction?
A. If the shares could
not be bought in the auction i.e. if the shares were not
offered for sale in the auction, the Exchange squares up
the transaction as per SEBI guidelines. The guideline in
force stipulates that the transaction is squared up at the
highest price on the NSE from the relevant trading period
till the auction day or at 20% above the last available
closing price on the NSE on the auction day, whichever is
higher. The pay-in and pay-out of funds for auction square
up is held along with the pay-out for the relevant
auction.
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Corporate
Benefits
Q.
What is a Book
closure/Record date?
A. The registered
shareholders of the company are entitled to corporate
benefits such as dividend, bonus, rights etc. announced by
the company from time to time. Since, the ownership of
shares of companies traded on the stock exchange is freely
transferable and to enable the company to know the persons
entitled to the benefits, all transfers of securities have
to be registered with the company (in case of transfer of
shares in physical form). Since transfer of securities is
a continuous process open any time, the company announces
cut off dates from time to time and members on the
register of shareholders as of these cut off dates are
entitled to the benefits. Such cut-off dates are record
dates. Alternatively, the company might choose the close
the register of shareholders for registration of transfer
during a specified period. All transfer requests received
before the commencement of the book closure or on or
before the record date are considered for the purpose of
transfer. A Company cannot close its books for more than
30 days at stretch for a book closure, and not more 45
days in a year. The period between two Book Closure cannot
be less than 90 days.
Q.
What is the difference
between book-closure and record-date?
A. A company announced
a Book Closure (BC) for the period 26th November to 30th
November 2003. During this period, the company had closed
its register of security holders. This was done to
determine the number of registered members who were
eligible for the Bonus and dividend. The process of
transfer of shares was operational till 25th Nov’03. The
company announced a No Delivery period from 2nd Nov to
29th Nov’03 before the Book Closure. During this period,
trading was permitted in the securities but the trades
were settled only after 29th November. Hence, the buyers
of the shares were not eligible for the Bonus and
dividend. The first day of the No Delivery period is
considered as an Ex - Date since the buyer of the shares
is not eligible for the corporate benefits for this BC.
The same
logic holds good for Record date, but the two main
differences are that: In case of a record date, the
company does not close its register of security holders.
Record date is a cut off date for determining the number
of registered members who are eligible for the corporate
benefits.
Q.
What is a 'No Delivery'
period?
A. Whenever, a book
closure or a record date is announced by a company, the
exchange sets up a 'No Delivery' period for that security.
During this period, trading is permitted in the security.
However, these trades are settled only after the
No-Delivery period is over. The start of No-Delivery
period is the ex-date of the settlement. The settlement is
clubbed with the settlement of the week whose pay-out date
falls just after the end of the no-delivery period. This
is done to ensure that investor's entitlement for the
corporate benefits is clearly determined. No-delivery
period generally extends to all weekly cycles touched from
15 days prior to the record date and 4 days subsequent to
the record date (both inclusive).
Q.
What is an ex-date?
A. The first day of
the 'No Delivery' period is the ex-date viz., if there is
any corporate benefit such as rights, bonus, dividend etc.
announced for which book closure/record date is fixed, the
buyer of the shares on or after the ex-date will not be
eligible for the benefits while the seller would be
eligible for the same.
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Password
Q.
How do I get my Logon
ID and PASSWORD for the first time?
A. In order to ensure
that you get secure Logon Id and Password, we request you
to set your own LOGON ID AND PASSWORD when you fill a
form. While getting the Logon Id and Password you will be
given an Account Reference Number (ARN). Please ensure
that the ARN is written on your application form. This ARN
will be used for tracking the customer registration
request. We will inform you when your application is
processed and your account is set up. Once your account is
set up, we will inform you by e-mail and you will be
prompted to change your Password, the fist time you login
after your account is set up.
If you have filled up the application forms for CSL
account directly without registering on the site, We would
dispatch your LOGON-id and password by normal post in a
sealed envelope. Your account shall be activated for
trading only after we receive your confirmation of you
having received the same in a sealed condition.
Q.
How do I Change my
password:
A. You can change your
password anytime by accessing our Customer Service
Section. In fact we strongly advise you to periodically
change your password for added security
Q.
I have
forgotten my password, what do I do?
A.
If you have forgotten your password, please
click on the Forgot your Password link in the Login page.
You will be asked the same Password reminder questions
that you entered while Registering/Account Opening, for
which you will have to give the same answers as you had
entered. In case you give the right answers, your password
will be reset and you will be prompted to specify a new
Password. Even then, if you are not able to access our
website, please contact us by sending an e-mail to helpdesk@consortiumsecurities.com
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