BAJAJ BROKING

open-demat-imgOpen Demat
Login-imgLogin
be-a-partner-imgBe a Partner
samadhan-imgSamadhan
open-demat-imgOpen Demat
InstallInstall App
Download AppInstall App
Notification close image
No new Notification messages
card image
Oswal Pumps IPO is Open!
Apply for the Oswal Pumps IPO through UPI in just minutes.
delete image
card image
Start your SIP with just ₹100
Choose from 4,000+ Mutual Funds on Bajaj Broking
delete image
card image
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
delete image
card image
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
delete image
card image
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.
delete image

Straddles Vs Strangles

Straddles Vs Strangles

What is a Passive ELSS?

A Passive ELSS is a tax-saving mutual fund that follows a specific market index, such as the Nifty 50 or Sensex. Rather than being actively managed, these funds aim to mirror the index’s composition and performance. Passive ELSS funds were introduced following a directive by the Securities and Exchange Board of India (SEBI) in 2022, allowing fund houses to offer this category of ELSS as an alternative to actively managed funds. However, a fund house can offer either active ELSS or passive ELSS, but not both simultaneously.

 

How Does Passive ELSS Work?

Passive ELSS funds function by tracking a predefined index, ensuring that investments align with the index’s composition. The primary goal is to replicate market movements rather than outperform them.

To better understand their functioning, consider the following:

  • Replication of Market Index – The fund manager invests in stocks constituting the chosen index, maintaining the same weightage as found in the benchmark.
  • Periodic Portfolio Rebalancing – Whenever the index undergoes changes in stock composition or weightage, the fund portfolio is adjusted accordingly.
  • Reduced Risk Exposure – Since passive ELSS funds are broadly diversified across sectors and industries, they reduce the impact of individual stock volatility.
  • Taxation on Returns – As these funds follow the ELSS framework, long-term capital gains (LTCG) above ₹1 lakh are taxed at 10%.

 

What are the Features of Passive ELSS?

Passive ELSS (Equity-Linked Savings Scheme) funds are designed to track a market index, offering investors a tax-efficient and lower-cost approach to equity investments. These funds come with unique characteristics that set them apart from active ELSS funds. Below are the key features that define Passive ELSS mutual funds:

  • Market Index Tracking
    Passive ELSS funds replicate the performance of a predefined market index, such as the Nifty 50 or Sensex. This means they invest in the same stocks as the index, in the same proportion, ensuring their returns closely mirror the benchmark.
  • Lower Risk Profile
    Since Passive ELSS funds track a diversified index, their risk is relatively lower than actively managed ELSS funds. The diversification across multiple sectors and industries helps mitigate the impact of poor performance by any individual stock or sector.
  • Cost-Effective Investment Option
    These funds generally have a lower expense ratio compared to active ELSS funds. As there is no frequent buying and selling of stocks, the fund management costs are reduced, allowing investors to retain a greater portion of their returns.
  • Transparent Investment Strategy
    Unlike actively managed funds, where the fund manager’s decisions impact portfolio composition, Passive ELSS funds follow a clear, rule-based approach. This transparency enables investors to understand exactly how their money is being allocated.
  • Three-Year Lock-In Period
    Similar to active ELSS funds, Passive ELSS funds have a mandatory lock-in period of three years. During this time, investors cannot withdraw their investments, encouraging a long-term approach to equity investments.
  • Tax Benefits Under Section 80C
    Passive ELSS funds offer tax benefits under Section 80C of the Income Tax Act. Investors can claim deductions of up to ₹1.5 lakh per financial year, making them a tax-efficient investment option.

 

Types of Passive ELSS

Investors looking to diversify their portfolio while benefiting from tax savings have different types of Passive ELSS funds to choose from. These variations cater to different risk appetites and investment strategies. Below are the main types of Passive ELSS funds:

  • Index-Based Passive ELSS
    These funds replicate the performance of a broad market index, such as the Nifty 50 or Sensex. By investing in top companies within the index, they provide stable returns over time with minimal active intervention from the fund manager.
  • Sectoral and Thematic Passive ELSS
    These funds track indices focused on specific sectors or themes, such as IT, banking, or pharmaceuticals. While they offer exposure to high-growth industries, they also carry higher risks due to their concentration in a particular sector.
  • Factor-Based Passive ELSS
    Also known as smart beta funds, these Passive ELSS schemes track indices that follow specific investment factors, such as low volatility, high dividend yield, or momentum. These funds aim to enhance returns by tilting exposure toward stocks with favourable characteristics.
  • Multi-Cap Passive ELSS
    These funds invest across large-cap, mid-cap, and small-cap stocks in the same proportion as a multi-cap index. This diversified approach balances risk and return by including companies of various market capitalisations.
  • Equal-Weighted Passive ELSS
    Unlike traditional index funds that allocate higher weights to larger companies, equal-weighted Passive ELSS funds distribute investments equally across all stocks in the index. This reduces the impact of large-cap dominance and provides exposure to mid- and small-cap stocks.

 

Who Should Invest in Passive ELSS?

Passive ELSS funds can be a suitable investment option for individuals looking for a tax-saving investment with lower risk. These funds cater to investors with specific financial objectives and investment styles. Here are the key groups who may find passive ELSS funds beneficial:

  • Long-term investors – Passive ELSS funds are designed for those prioritising long-term wealth creation. By tracking a broad market index, these funds aim to provide consistent returns over time, making them ideal for investors with a long-term perspective.
  • Hands-off investors – Since passive ELSS funds follow a predefined market index, they require minimal active management. This makes them suitable for investors who prefer a low-maintenance approach to investing.
  • Cost-conscious investors – Passive ELSS funds typically have lower expense ratios compared to actively managed ELSS funds. This allows investors to retain a larger share of their returns, making them a cost-effective option.
  • Investors valuing transparency – The predefined investment strategy of passive ELSS funds provides a clear understanding of their composition and performance. Investors who appreciate transparency and predictability may find these funds appealing.
  • Tax-saving investors – As passive ELSS funds qualify for tax deductions under Section 80C of the Income Tax Act, they serve as a valuable option for individuals looking to optimise their tax planning while building wealth.

 

How to Invest in Passive ELSS?

Investing in passive ELSS funds is a straightforward process that involves selecting a fund, assessing its suitability, and making an informed investment decision. Follow these steps to invest in passive ELSS funds efficiently:

Step 1: Open an Investment Account

To invest in passive ELSS funds, you must have an investment account with a registered mutual fund platform. If you do not have an account, you can open one by providing the required documents such as PAN, Aadhaar, and bank details.

Step 2: Select a Suitable Passive ELSS Fund

Before investing, research different passive ELSS funds to determine which one aligns with your financial goals and risk profile. Consider the following factors:

  • The fund’s historical performance and market index it tracks
  • Tax implications and expected returns
  • The sectors and companies included in the index
  • The expense ratio and ratings of the fund


Step 3: Decide on an Investment Mode

You can invest in passive ELSS funds through:

  • Lump sum investment – A one-time investment for those who have surplus funds available.
  • Systematic Investment Plan (SIP) – Regular contributions at fixed intervals, allowing for disciplined investing and reducing exposure to market fluctuations.


Step 4: Complete the Investment Transaction

Once you have finalised your preferred passive ELSS fund and investment mode:

  • Enter the investment amount
  • Select your preferred payment mode
  • Confirm and complete the transaction


Step 5: Monitor and Manage Your Investment

While passive ELSS funds require minimal active management, it is advisable to periodically review your investment performance. Keep track of:

  • Market trends affecting the index
  • Tax implications on capital gains
  • Any changes in the fund’s composition

 

Advantages of Investing in Passive ELSS

Investing in Passive ELSS (Equity-Linked Savings Scheme) funds presents several benefits, making them an attractive option for investors seeking tax efficiency and long-term financial growth. Below are the key advantages of opting for Passive ELSS funds:

  • Tax-Saving Benefit
    Passive ELSS funds offer tax deductions under Section 80C of the Income Tax Act. Investors can claim deductions of up to ₹1.5 lakh per financial year, reducing their taxable income and saving on taxes. This makes Passive ELSS a preferred choice for those looking to combine wealth creation with tax efficiency.
  • Market-Linked Growth
    Since Passive ELSS funds track a specific benchmark index, they provide exposure to the top-performing companies in the stock market. This enables investors to benefit from overall market growth while minimising the risks associated with active stock selection.
  • Lower Expense Ratio
    Compared to actively managed ELSS funds, passive ELSS funds typically have a lower expense ratio. Since these funds simply replicate the performance of an index rather than being actively managed, the costs associated with research, fund management, and transactions are significantly reduced. This allows investors to retain a greater portion of their returns.
  • Diversification with Reduced Risk
    By mirroring a broad-based market index, Passive ELSS funds automatically diversify investments across multiple sectors and industries. This diversification helps mitigate the risks associated with individual stocks and sectors, making them a relatively safer option for investors looking for stable returns.
  • Transparency and Predictability
    Passive ELSS funds follow a predefined strategy by tracking a market index, making them highly transparent. Investors have a clear understanding of where their money is being invested, which provides predictability regarding the fund’s performance. Unlike actively managed funds, where strategies can change based on the fund manager’s discretion, passive funds remain aligned with the index they track.
  • No Bias in Stock Selection
    Since Passive ELSS funds follow a structured approach by investing in the stocks listed in an index, there is no risk of fund manager bias or misjudgment. This eliminates the possibility of human error in stock selection, ensuring a more systematic investment approach.
  • Lock-In Period Encouraging Long-Term Investment
    Like all ELSS funds, Passive ELSS funds come with a mandatory lock-in period of three years. This encourages a disciplined investment approach, allowing investors to stay invested for the long term without frequent withdrawals. Long-term investments in equities tend to yield better returns due to the power of compounding.

 

Risks Involved in Passive ELSS

While Passive ELSS funds provide a range of benefits, they also come with inherent risks. It is essential for investors to understand these risks before committing to an investment. Here are the key risks associated with Passive ELSS funds:

  • Market Risk: As Passive ELSS funds are linked to the stock market, their performance depends on the overall market movements. If the market experiences a downturn, the fund value may decline accordingly.
  • Limited Flexibility: Since these funds replicate a benchmark index, fund managers do not have the flexibility to actively manage the portfolio. This means that even if certain stocks in the index underperform, the fund will still hold them, potentially impacting returns.
  • Lock-In Period: Like all ELSS funds, Passive ELSS funds come with a three-year lock-in period. During this time, investors cannot withdraw their funds, which may be a concern for those needing liquidity.
  • Absence of Active Stock Selection: Unlike actively managed ELSS funds where fund managers select stocks based on research and potential growth, Passive ELSS funds strictly follow the index. This means they might miss opportunities to outperform the market through strategic stock selection.
  • Tracking Error: Although Passive ELSS funds aim to replicate the benchmark index, slight variations in actual performance compared to the index can occur due to tracking errors. These errors may arise due to fund expenses, rebalancing, or timing differences in executing trades.

 

Factors to Consider Before Investing in Passive ELSS

Before investing in Passive ELSS mutual funds, it is crucial to evaluate several key factors to ensure they align with your financial goals and risk tolerance. Here are the primary aspects to consider:

  • Expense Ratio
    Passive ELSS funds generally have lower expense ratios compared to actively managed funds. However, it is still essential to compare different funds to ensure you are selecting one with competitive fees, as lower expenses contribute to better long-term returns.
  • Fund Manager’s Track Record
    Although passive funds track an index, the fund manager plays a crucial role in ensuring the fund remains aligned with its benchmark. Assessing the fund manager’s expertise and history in managing passive funds can provide confidence in their ability to maintain efficient tracking.
  • Investment Tenure
    Passive ELSS funds have a mandatory lock-in period of three years, which means investors cannot withdraw their funds before this duration. While this is the shortest lock-in period among tax-saving instruments, investors should align their investment horizon accordingly.
  • Suitability for Your Investment Goals
    Passive ELSS funds may not be suitable for all investors. If you prefer market-linked returns without active fund management, they can be a viable option. However, if you seek personalised fund strategies with an active approach to outperform market indices, an actively managed ELSS fund might be more appropriate.

Taxability of Passive ELSS

Understanding the tax implications of Passive ELSS funds is essential to make informed investment decisions. These funds offer tax-saving benefits, but they are also subject to taxation on capital gains.

  • Lock-In Period and Tax Benefits
    Investments in Passive ELSS funds qualify for deductions under Section 80C of the Income Tax Act, allowing investors to claim a tax benefit of up to ₹1.5 lakh per financial year. However, since these funds have a three-year lock-in period, no withdrawals can be made during this time.
  • Long-Term Capital Gains (LTCG) Tax
    Since Passive ELSS funds have a minimum holding period of three years, there are no short-term capital gains (STCG). Gains exceeding ₹1 lakh in a financial year are taxed at 10% under LTCG tax rules, without the benefit of indexation. Gains up to ₹1 lakh remain tax-free, making these funds an efficient tax-saving investment.

 

Popular Passive ELSS in India

Passive ELSS mutual funds are gaining popularity among investors seeking tax-saving benefits and market-linked returns with minimal expense ratios. These funds track an index and provide diversification across various market segments. Below is a list of the top three passive ELSS mutual funds currently available in India:

Top 3 Passive ELSS Mutual Funds to Invest In

Fund Name

AUM (in ₹ crore)

CAGR 1Y (%)

Expense Ratio (%)

Lifetime CAGR (%)

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

145.11

16.50

0.27

27.08

360 ONE ELSS Tax Saver Nifty 50 Index Fund

78.71

11.10

0.27

14.82

Navi ELSS Tax Saver Nifty 50 Index Fund

73.32

10.54

0.10

21.23

Note: The above-mentioned Passive ELSS Funds list is for informational purposes only and is not a recommendation. The funds are sorted as per the 1-Year CAGR as of January 9, 2025, which is subject to change frequently. Investors should check real-time data before making investment decisions.

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

This fund offers a unique blend of stability and growth by investing across large- and mid-cap companies. With an expense ratio of 0.27%, it is competitively priced, while its standard deviation of 15.74% reflects slightly higher volatility. A Sharpe ratio of 0.89 highlights strong risk-adjusted returns compared to peers.

360 ONE ELSS Tax Saver Nifty 50 Index Fund

Designed for investors looking to save on taxes while participating in market growth, this fund has a low expense ratio of 0.27%, making it cost-efficient. Its standard deviation of 14.13% indicates moderate volatility. Though the Sharpe ratio of 0.55 is below the category average, its focus on Nifty 50 companies ensures reliable long-term growth.

Navi ELSS Tax Saver Nifty 50 Index Fund

A highly economical option with an expense ratio of just 0.10%, this fund offers one of the lowest costs in its category. Its standard deviation of 14.19% reflects controlled volatility, and a Sharpe ratio of 0.55 ensures balanced risk-adjusted performance. Investing in Nifty 50 companies, it provides stable returns and diversification benefits.

Investors should carefully assess their financial goals, risk appetite, and investment horizon before choosing a Passive ELSS mutual fund. By considering factors such as expense ratio, volatility, and long-term performance, they can make informed decisions that align with their tax-saving and wealth-building objectives.

 

Share this article: 

Frequently Asked Questions

No result found

search icon

Read More Blogs

blogimage

Oil Prices Soar 11% as Israeli Strikes on Iran Trigger Supply Fears

Oil prices surged up to 13% after Israeli strikes on Iran’s nuclear sites. Market fears escalate over retaliation risks and supply disruption in Middle East oil routes.

13 Jun, 2025 | 2 Min. read
blogimage

Genus Power: GIC Affiliate Plans Rs.650 Crore Stake Sale via Block Deal

Chiswick Investment to divest up to 5.88% stake in Genus Power Infrastructures via Rs.650 crore block deal. Floor price set at Rs.360 per share, down 6.5%.

13 Jun, 2025 | 2 Min. read
blogimage

DCM Shriram to Acquire Hindusthan Specialty Chemicals for Rs.375 Crore

DCM Shriram will acquire 100% stake in Hindusthan Specialty Chemicals for Rs.375 crore, marking its entry into advanced materials. Deal aligns with chemicals expansion plans.

13 Jun, 2025 | 2 Min. read
blogimage

Jubilant Pharmova Approves API Business Slump Sale to Jubilant Biosys

Jubilant Pharmova to transfer its Rs.609 crore API business to subsidiary Jubilant Biosys through a slump sale by September 2025. Share price down 1.74%.

13 Jun, 2025 | 2 Min. read
blogimage

Gold Rate Today | 13 Jun 2025

Update with gold rate today 13 Jun 2025, & last 10 days gold price in India, based on rupees per gram for 18, 24 & 22 Carat/Karat in major Indian cities.

13 Jun, 2025 | 40 Min. read
blogimage

Private Credit vs. Private Equity

Compare private credit and private equity in terms of structure, returns, risks, and goals. See which asset class aligns better with your portfolio needs.

13 Jun, 2025 | 2 Min. read
blogimage

Smart Investment Strategies for Bear Markets

Get smart investment strategies for navigating bear markets. Learn how to invest wisely with expert-backed tips. Secure your future with Bajaj Broking.

13 Jun, 2025 | 11 Min. read
blogimage

What Happens When a Stock Is Dropped From the S&P 500?

When a company is dropped from the S&P 500, it sparks shifts in stock value and market behavior. See what typically follows and why it matters to investors.

13 Jun, 2025 | 7 Min. read
blogimage

Popular Commodities to Trade in 2025

Popular commodities for traders in 2025- gold, crude oil, coffee & more. Get key insights and diversify your portfolio with Bajaj Broking.

13 Jun, 2025 | 7 Min. read
blogimage

How to Apply for Oswal Pumps IPO? Step-by-Step Guide

Ready to invest in IPOs? Discover how to apply for the Oswal Pumps IPO within minutes using Bajaj Broking. Quick, simple, and seamless investment experience!

13 Jun, 2025 | 4 Min. read

Disclaimer :

The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.

The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.

Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.

Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

 [ Read More ]

For more disclaimer, check here : https://www.bajajbroking.in/disclaimer

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

10 lakh+ Users

icon-with-text

4.4 App Rating

icon-with-text

4 Languages

icon-with-text

₹5100+ Cr MTF Book

icon-with-text
banner-icon

Open Your Free Demat Account

Enjoy low brokerage on delivery trades

+91

|

Please Enter Mobile Number

Open Your Free Demat Account

Enjoy low brokerage on delivery trades

+91

|

TRENDING CALCULATORS AND STOCKS ON BAJAJ BROKING

Popular Stock

top-popular-on-bfsl

POPULAR STOCKS: Tata Motors Share Price Infosys Share Price IRFC Share Price SBI Card Share Price Cipla Share Price NBCC Share Price IDFC First Bank Share Price IRCTC Share Price PNB Share Price Vodafone Idea Share Price Axis Bank Share Price JSW Steel Share Price Bandhan Bank Share Price SBI Share Price Tata Steel Share Price ONGC Share Price Ashok Leyland Share Price Paytm Share Price Subex Share Price DLF Share Price Reliance Share Price HDFC Bank Share Price Suzlon Share Price IOC Share Price HUL Share Price Asian Paints Share Price Bank Of Baroda Share Price ITC Share Price TCS Share Price HFCL Share Price Icici Bank Share Price Tata Chemicals Share Price CDSI Share Price MRF Share Price Tata Power Share Price Adani Green share price BPCL Share Price Vedanta Share Price Dmart Share Price Hindalco Share Price LIC Share Price SAIL Share Price Adani Port Share Price IEX Share Price Nalco Share Price L&T Share Price Adani Power Share Price BHEL Share Price Bajaj Finance Share Price Canara Bank Share Price Indusind Bank Share Price Gail Share Price Yes Bank Share Price Wipro Share Price Happiest Minds Share Price Coal India Share Price Maruti Share Price Reliance Power Share Price

 

INDIAN INDICES: Nifty 50 Share Price SENSEX Share Price Nifty Next 50 Share Price BSE100 Share Price Nifty Bank Share Price LRGCAP Share Price Nifty 100 Share Price MIDCAP Share Price Nifty 200 Share Price SMLCAP Share Price Nifty 500 Share Price BSE500 Share Price Nifty Midcap 50 Share Price ALLCAP Share Price NIFTY SMLCAP 50 Share Price BSE200 Share Price India VIX Share Price BSEIPO Share Price

ATTENTION INVESTORS:

“Investments in securities market are subject to market risk, read all the scheme related documents carefully before investing."

"Prevent Unauthorized transactions in your Trading/Demat Account. Update your mobile numbers/email IDs with your stock brokers/Depository Participant. Receive alerts/information of your transaction/all debit and other important transactions in your Trading/ Demat Account directly from Exchange/CDSL/NSDL at the end of the day. Issued in the interest of investors."

" We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services."  

"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."

"We understand that certain investment advisors may be approaching members of the public including our clients, representing that they are our partners, or representing that their investment advice is based on our research. Please note that we have not engaged any third parties to render any investment advisory services on our behalf nor are we providing any stock recommendations/tips/research report/advisory. Persons making investments on the basis of such advice may lose all or a part of their investments along with the fee paid to such unscrupulous persons. Please be cautious about any phone call that you may receive from persons representing to be such investment advisors, or a part of research firm offering advice on securities. Do not make payments through e-mail links, WhatsApp or SMS. Please do not share your personal or financial information with any person without proper verification. Always trade through a registered broker."

Bajaj Financial Securities Limited is a subsidiary of Bajaj Finance Limited and is a corporate trading and clearing member of BSE Ltd. and National Stock Exchange of India Ltd. (NSEIL), and also a Depository participant with National Securities Depository Ltd (“NSDL”) and Central Depository Services Ltd. (“CDSL”).

Bajaj Financial Securities Limited is engaged in the business of Stock Broking and as a Depository Participant.Bajaj Financial Securities Limited does not provide any advisory services to its clients. Bajaj Financial Securities Limited may share updates from time to time (through various electronic communication modes) which are sourced from public domain and the same are NOT to be construed as any advice or recommendation from Bajaj Financial Securities Limited. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever.

BSE Ltd. is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.

BSE Ltd. is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Personal Loan, Fixed Deposit, EMI Card are provided by Bajaj Finance Limited. Bajaj Financial Securities Limited is only a distributor. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Please Note:

  1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020

  2. Update your mobile number & email ID with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

  3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

  4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.

  5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in Vernacular Language: BSE | NSE

If the client wishes to revoke /cancel the EDIS mandate placed by them, they can write on email to connect@bajajbroking.in  or call on the toll free number.

Advisory for Investors : NSE | BSE

ADVISORY - KYC COMPLIANCE

ADVISORY – PRECAUTIONS FOR CLIENTS DEALING IN OPTIONS

We also do pro-account trading in Equity & Derivatives Segment.

Filling complaints on SCORES - Easy & Quick

A.  Register on SCORES portal B. Mandatory details for filling complaints on SCORES (i) Name, PAN, Address, Mobile Number, E-mail ID C. Benefits: (i) Effective Communication (ii) Speedy redressal of the grievances.

SEBI Registration No.: INZ000218931 | BSE Cash/CDS/F&O (Member ID: 6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403 Research Analyst SEBI Registration No. INH000010043

Compliance officer:

Mr. Harinatha Reddy Muthumula
TEL: 020-48574486
Email: compliance_sec@bajajbroking.in, for any investor grievances write to compliance_sec@bajajbroking.in for DP related to Compliance_dp@bajajbroking.in .

DISCLAIMER

STANDARD DISCLAIMER

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403. 

Website: https://www.bajajbroking.in/

RESEARCH DISCLAIMER

Broking services offered by Bajaj Financial Securities Limited | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014 | CIN: U67120PN2010PLC136026 | Research Analyst SEB I Registration No: INH000010043.

Details of Compliance Officer: 

Mr. Harinatha Reddy Muthumula (For Broking/DP/Research)
Email: compliance_sec@bajajbroking.in
Contact No.: 020-4857 4486 

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

DISCLOSURES

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations) 

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.