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
Travel Food Services IPO is Open!
Apply for the Travel Food Services 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

What are Shares?

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Shares represent a unit of ownership in a company, offering investors a portion of the company's assets and profits. When individuals purchase shares, they essentially become part-owners of the business. Shares are crucial to companies as they allow them to raise capital for growth, expansion, or to meet operational needs. For investors, shares provide an opportunity to grow wealth based on the company’s performance in the stock market.

There are mainly two types of shares: equity shares and preference shares. Equity shares, also known as ordinary shares, give shareholders voting rights and a claim to a portion of the company's profits, though dividends are not guaranteed. Preference shares, on the other hand, offer fixed dividends and have priority over equity shares when it comes to dividend payouts, but they often do not carry voting rights. Both types of shares serve different investor needs, with equity shares appealing to those seeking long-term growth, while preference shares attract investors looking for stable income. 

What are Shares - Meaning & Types of Shares

Shares. represent a unit of ownership in a company, giving investors a stake in its assets and earnings. When an individual purchases shares, they become a shareholder, meaning they hold a proportional ownership in the company based on the number of shares they own. Shareholders may receive dividends if the company distributes profits, and they also benefit from potential capital appreciation if the share price rises over time.

Investing in shares requires a Demat Account, which electronically holds securities and streamlines trading. Shares can be bought and sold on stock exchanges, where their prices fluctuate based on market demand, company performance, and broader economic conditions. While shares offer growth opportunities, they also come with risks, including price volatility and market fluctuations.

Shares represent units of ownership in a company. When you buy a share, you essentially own a portion of that business and are entitled to a share of its profits, commonly in the form of dividends. Shares are traded on stock exchanges and can increase or decrease in value depending on market conditions and company performance.

Example of shares

Suppose a company issues 1,00,000 shares and you buy 1,000 of them. You now own 1% of the company. If the company earns profits, you may receive dividends. If the share price rises from Rs.100 to Rs.150, you gain Rs.50 per share if you decide to sell at the new price.

Benefits of shares

Investing in shares offers capital appreciation, regular dividend income, and ownership in reputed businesses. Shares are highly liquid, allowing easy entry and exit. They also offer portfolio diversification and inflation-beating returns over the long term. Active stock investors may benefit from short-term price movements and long-term value appreciation.

Understanding Shares and Stocks

The terms shares and stocks are often used interchangeably, but they have distinct meanings in finance. A stock indicates the total percentage of equity ownership that belongs to all investors while single shares each represent a single ownership unit. After issuing stock the company distributes total ownership into shares that investors trade through BSE Sensex along with Nifty 50 Price benchmark exchanges.

Owning shares grants investors certain rights, such as receiving dividends, voting on corporate decisions, and benefiting from stock price appreciation. However, share prices fluctuate based on market sentiment, economic conditions, and company performance, making it essential for investors to stay informed before making investment decisions.

Features and Characteristics of Shares

Shares come with several key features that define their role in the stock market and investment landscape:

  1. Ownership Stake – Shareholders own a portion of the company, which entitles them to a share of its assets and earnings.
  2. Dividends – Some companies distribute a portion of their profits to shareholders as dividends.
  3. Voting Rights – Common shareholders typically have voting rights in corporate decisions, including board elections.
  4. Capital Appreciation – If a company grows and performs well, its share price may rise, providing potential gains for investors.
  5. Liquidity – Shares are traded on stock exchanges, making them relatively easy to buy and sell.
  6. Risk and Return – While shares offer the potential for high returns, they also carry risks due to market volatility and company-specific factors.
  7. Margin Trading Facility (MTF) – Investors can leverage their capital by borrowing funds to trade larger positions in the market, amplifying both potential gains and risks.

Example of Shares

Consider an investor who purchases 100 shares of XYZ Ltd., a publicly listed company. If the company has issued a total of 10,000 shares, the investor owns 1% of the company. This ownership stake entitles them to potential dividends and voting rights, depending on the type of shares held.

If XYZ Ltd. performs well, its share price may increase, allowing the investor to sell the shares at a higher price and earn capital gains. Conversely, if the company's financial performance declines, the share price may drop, leading to potential losses. Investors engaging in intraday trading often capitalize on such price fluctuations by buying and selling shares within the same trading session, aiming to profit from short-term market movements.

Shares vs. Stocks: Key Differences

While the terms "shares" and "stocks" are often used interchangeably, they have distinct meanings in financial markets. The table below outlines the key differences between the two:

Aspect

Shares

Stocks

Definition

A unit of ownership in a company

A general term for ownership in one or more companies

Specificity

Represents ownership in a single company

Can refer to multiple companies

Dividends

Shareholders may receive dividends based on company profits

Stockholders receive dividends only if they hold shares in a dividend-paying company

Voting Rights

Common shareholders typically have voting rights

Only applicable if stocks include voting shares

Trading

Bought and sold individually on stock exchanges

Refers to equity investments in general, including Futures and Options trading

Understanding these distinctions helps investors make informed decisions when navigating the stock market.

Types of Shares and Their Classifications

Shares can be categorized based on ownership rights, dividend policies, and market behavior. Here are the major types of shares available in the stock market:

  1. Common Shares – These represent ownership in a company and typically grant voting rights. Shareholders may also receive dividends, but these are not guaranteed.
  2. Preferred Shares – These come with fixed dividend payouts and have priority over common shares in case of liquidation, but they usually lack voting rights.
  3. Treasury Shares – These are shares that a company has repurchased from the market. They do not pay dividends and are not included in earnings per share calculations.
  4. Voting & Non-Voting Shares – Some companies issue shares with or without voting rights to control corporate decision-making.
  5. Growth & Value Shares – Growth shares belong to companies expected to expand rapidly, while value shares are those perceived as undervalued relative to their fundamentals.
  6. IPO Shares – When a company first goes public, it issues shares through an IPO (Initial Public Offering), allowing investors to buy ownership before the stock begins regular market trading.

Each type of share serves a different purpose, catering to investors with varying risk appetites and financial goals.

How Share Prices Are Determined and Performance

The price of a share fluctuates based on multiple factors, including market demand, company performance, and broader economic trends. Here are the key elements that influence share price movements:

  1. Company Financials – A company’s revenue, earnings, and profitability significantly impact its stock price. Strong quarterly results often lead to price appreciation, while weak earnings can result in declines.
  2. Market Sentiment – Investor perception, influenced by news, economic indicators, and geopolitical events, plays a crucial role in share price fluctuations.
  3. Industry Trends – Sector-specific developments, such as new regulations or technological advancements, affect share prices within that industry.
  4. Benchmark Indices – The performance of key indices like BSE Sensex and Nifty 50 Price provides an overall market trend, impacting individual stocks.
  5. Macroeconomic Factors – Inflation, interest rates, and GDP growth affect investor confidence and, consequently, share prices.

Understanding these factors helps investors assess market conditions and make informed decisions when buying or selling shares.

How to Buy and Sell Shares?

Investing in shares requires a structured approach, starting with account setup and ending with trade execution. Investors must follow specific steps to ensure smooth transactions in the stock market.

Buying

  1. Open Demat Account – A Demat Account is mandatory for holding shares electronically. Investors need to link it with a trading account to buy and sell stocks.
  2. Research Stocks – Evaluating a company’s financials, growth potential, and market trends helps investors make informed decisions.
  3. Place an Order – Orders can be placed at market price (market order) or at a specific price (limit order), depending on trading strategy.
  4. Pay for Shares – Funds must be available in the trading account to complete the purchase.
  5. Monitor Portfolio – Tracking share price movements and company performance helps investors adjust their strategies when necessary.

Selling

  1. Decide When to Sell – Investors may sell shares to book profits, cut losses, or rebalance their portfolios.
  2. Place Sell Order – A sell order can be executed at the current market price or at a predefined limit price.
  3. Receive Payment – Once sold, the proceeds are credited to the trading account.
  4. Review Investment Strategy – Analyzing past trades helps refine future investment decisions.

Market success depends on both real-time observation and knowledge of current market direction trends. Investors can use Intraday Trading strategies for short-term profits but long-term investors prefer to develop their capital through time.

Why Do Companies Issue Shares?

Companies issue shares primarily to raise capital for business expansion, operations, and other strategic initiatives. Here are some key reasons why firms opt for share issuance:

  1. Raise Capital for Growth – Selling shares helps companies secure funds for expansion, product development, and infrastructure improvements.
  2. IPO (Initial Public Offering) – When a private company goes public through an IPO, it gains access to a broader pool of investors, increasing its financial stability.
  3. Market Visibility – Publicly traded companies gain credibility and attract institutional investors, enhancing their brand reputation.
  4. Funding Mergers and Acquisitions – Companies may issue shares to finance acquisitions or merge with other businesses.
  5. Debt Reduction – Issuing shares allows companies to raise funds without increasing debt obligations, improving financial flexibility.

When companies open their shares to public purchase they gain both necessary financing and essential relationships with investors that boost their growth and market development.

Benefits of Investing in Shares

Investing in shares offers several advantages, making it a popular choice for wealth creation. Here are some key benefits:

  1. Capital Appreciation – Share prices may rise over time, allowing investors to sell at a profit and build long-term wealth.
  2. Dividend Income – Many companies distribute a portion of their earnings as dividends, providing a passive income stream.
  3. Portfolio Diversification – Investing in shares across different sectors reduces overall risk and enhances financial stability.
  4. Liquidity – Shares can be easily bought and sold on stock exchanges, ensuring quick access to funds when needed.
  5. Margin Trading Facility (MTF) – Investors can use Margin Trading Facility (MTF) to trade larger positions with borrowed funds, potentially amplifying returns while managing risk.
  6. Participation in Corporate Growth – Shareholders benefit from a company’s success through stock price appreciation and dividend payouts.

While investing in shares offers growth potential, it is essential to consider market risks and align investments with financial goals.

Share price performance metrics

Tracking the performance of share prices involves evaluating several key metrics and influencing factors. These indicators help investors understand the value, volatility, and long-term prospects of a company’s stock. Accurate assessment of these metrics can support better investment decisions and enhance understanding of market movements.

Performance metrics of share prices

Performance metrics include earnings per share (EPS), price-to-earnings (P/E) ratio, dividend yield, and beta. EPS reflects a company's profitability, while the P/E ratio compares share price to earnings. Dividend yield indicates the return on investment via dividends. Beta measures stock volatility against the broader market, indicating risk exposure.

Company performance

The financial health of your company has a significant impact on its share price. The key indicators that you need to consider here are: debt levels, profit margins, and quarterly earning. To enjoy a consistent profit and growth in your company, you need a steady hike in the share price. This can attract both retail and institutional investors as their primary concern is stability and value.

Industry trends

You might wonder why your company fluctuates even if it has performed well individually. Generally, the reason for this is broader industry performances. Let’s consider an example here. Now, the IT sector is wrapped in digital transformations. This has led to a significant rise in the IT company stocks. On the other hand, when there’s a downfall in the automotive industry, it is sure to impact the car manufacturer stocks, irrespective of individual company share performances.

Investor sentiment

Another crucial factor that affects the share price movement of your company is market psychology. The more the positive sentiments, the more people buy and the more prices rise. Factors such as news coverage, social media buzz, or analyst ratings often shape how investors perceive the short-term prospects of a particular stock.

Macroeconomic factors

Macroeconomic variables like interest rates, inflation, GDP growth, and foreign exchange rates directly influence share prices. For instance, rising inflation may lead to higher interest rates, negatively affecting consumer spending and corporate profits, thereby impacting stock prices across multiple sectors.

Company-specific events

Share prices also react to company-specific developments such as product launches, mergers, leadership changes, or litigation. A successful new product or acquisition deal can lead to a surge in stock prices, while negative events like regulatory fines or management exits may lead to sharp declines.

How to buy and sell shares?

Buying and selling shares in India involves opening a trading and demat account with a registered broker. Shares can be bought or sold via stock exchanges such as NSE and BSE. Investors should understand the process, charges involved, and market timings before placing any buy or sell orders.

Buying

To buy shares, an investor must fund their trading account and place a ‘buy’ order through their broker’s platform. This includes selecting the stock, quantity, price, and order type (market or limit). Once executed, the shares are credited to the demat account after settlement, usually within T+1 days.

Selling

Selling shares follows a similar process. The investor selects the stock held in their demat account and places a ‘sell’ order. Depending on the price movement, the order gets executed on the exchange. The sale proceeds are credited to the investor’s bank account after settlement, usually in T+1 days.

Risk of owning shares

While shares offer substantial returns, they come with significant risks. Prices are highly volatile and influenced by internal and external factors, which can lead to capital losses. Poor company performance, regulatory changes, market crashes, or geopolitical tensions can erode stock value. Additionally, unlike fixed income assets, shares offer no guaranteed returns. Investors must assess their risk tolerance, diversify holdings, and invest with a long-term horizon to manage exposure effectively.

Risks Associated with Owning Shares

While shares offer potential for high returns, they also come with inherent risks that investors should consider:

  1. Market Risk – Stock prices fluctuate due to economic conditions, interest rates, and geopolitical events, affecting overall portfolio value.
  2. Company-Specific Risk – Poor management decisions, declining revenue, or legal challenges can negatively impact a company’s stock price.
  3. Liquidity Risk – Some stocks have lower trading volumes, making it difficult to buy or sell them quickly without affecting the price.
  4. Regulatory Risk – Changes in government policies, taxation, or industry regulations can influence stock performance.
  5. Leverage Risk in Futures and Options – Trading in Futures and Options allows investors to take larger positions with a fraction of the capital, but it also increases exposure to significant losses if the market moves unfavorably.

Understanding these risks helps investors develop strategies to mitigate potential losses and make informed investment decisions.

Conclusion

Shares are a fundamental component of the financial markets, and provide investors with capital growth opportunities and dividend income, as well as a means to diversify their portfolios. Whether through long-term investing or strategies like Intraday Trading, market participants have various approaches to explore based on their financial goals and risk tolerance.

That said, investing in shares does carry two distinct risks: market price changes and unpredictable factors that affect individual companies. Strategic planning through extensive research along with planned execution enables investors to handle market obstacles successfully. Before making investment decisions, it is crucial to assess risk factors, stay informed about market trends, and use tools like a Demat Account for seamless trading.

Share this article: 

Frequently Asked Questions

No result found

search icon

Read More Blogs

blogimage

Gold Rate Today | 04 July 2025

Update with gold rate today 04 Jul 2025, & last 10 days gold price in India, based on rupees per gram for 18, 24 & 22 Carat/Karat in major Indian cities.

04 Jul, 2025 | 40 Min. read
blogimage

How to Apply for Happy Square Outsourcing Services IPO

Ready to invest in IPOs? Discover how to apply for the Happy Square Outsourcing Services IPO within minutes using Bajaj Broking. Seamless investment experience!

04 Jul, 2025 | 3 Min. read
blogimage

Happy Square Outsourcing Services IPO: Objectives & Opportunities

Know key details of Happy Square Outsourcing Services IPO before making a calculative IPO investment. Apply & check your allotment for investment with Bajaj Broking.

04 Jul, 2025 | 3 Min. read
blogimage

Meta Infotech IPO: Key Objectives & Opportunities

Know key details of Meta Infotech IPO before making a calculative IPO investment. Apply & check your allotment for investment with Bajaj Broking.

04 Jul, 2025 | 5 Min. read
blogimage

How to Apply for Meta Infotech IPO? Step-by-Step Guide

Ready to invest in IPOs? Discover how to apply for the Happy Square Outsourcing Services IPO within minutes using Bajaj Broking. Seamless investment experience!

04 Jul, 2025 | 3 Min. read
blogimage

SEBI Mutual Fund Regulations: Guidelines & Impact on India

SEBI regulates mutual funds in India with clear guidelines to ensure investor protection. This article covers key regulations, fund structures, and investment options.

03 Jul, 2025 | 3 Min. read
blogimage

How to Transfer Mutual Funds- Online & Offline Methods

Transferring mutual funds between brokers or to another person can be complex. Learn about the rules and online & offline processes for smooth and secure transfers.

03 Jul, 2025 | 3 Min. read
blogimage

Cryogenic OGS IPO: Key Objectives & Opportunities

Know key details of Cryogenic OGS IPO before making a calculative IPO investment. Apply & check your allotment for investment with Bajaj Broking.

03 Jul, 2025 | 3 Min. read
blogimage

How to Apply for Cryogenic OGS IPO? Step-by-Step Guide

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

03 Jul, 2025 | 3 Min. read
blogimage

GIFT Nifty Takes Center Stage as SGX Nifty Bows Out

GIFT Nifty replaces SGX Nifty as the new face of India's global trading. See how this change impacts Indian investors and why it’s a major shift in market strategy.

02 Jul, 2025 | 7 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

4.2 App Rating

icon-with-text

4 Languages

icon-with-text

₹5600+ 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.