Saturday, October 2, 2010
Demat Accounts in Punjab
As per NSDL data, in Punjab, Ludhiana has the largest number of demat account holders (44,184), followed by Amritsar (40,970) and Jalandhar (31,112) till August 31, 2010. Overall, Punjab had 194,554 demat account holders in the state, as compared to 168,744 it had as on August 31, 2008.
Last year, there were 38,086 demat account holders in Ludhiana, while Amritsar had 36,021 account holders and Jalandhar 29,141. Clearly Ludhiana is a front runner. However, small cities like Hoshiarpur, Gurdaspur, Sangrur and Rupnagar, among others, are also attracting potential equity investors.
As on August 31, 2010, Hoshirapur had 11,720 demat account holders, Gurdaspur (11,513), Sangrur(7,876) and Rupnagar (4,323).
“The increase is because of higher awareness among people and the boom in the stock market. This is evident from the fact that there are many national brokers along with regional brokers, operating from herem,” said an official of a broking firm.
Regional brokers, like Vikson Finance & Investment Private Limited, opened their terminals in small towns like Rajpura, Barnala, Nangal, Ropar and Nabha.
Friday, August 20, 2010
Dabba Trading
NCDEX has a daily turnover of of Rs 3,000 to 4,000 crore and Punjab and Haryana contributes Rs 150 to 200 crore to total trade per day.
The dabba trading is exactly the same like any other trading on the exchange, the only difference is that the investor’s trades do not get executed on the stock exchange system but in the dabba operator’s books only. A dabba operator acts as a principal to all the trades and not as an agent of the client, essentially bypassing the regulations of exchange in a bid to save transaction charges and margin requirements.
In Dabba Trading, there will be very low or no margin obtained from investors and no contract note or exchange order is provided to an investor.
Recognized commodity exchanges normally impose 5% to 15% of contract value as margin and ensure a daily mark to market settlement. The exchange can ensure that the counter party respects the trade/ contract terms.
In dabba trading, even if an investor makes profit on a trade, he may suffer a loss if broker involved in dabba trading goes insolvent. Also, due to many brokers unscrupulous practices, every year, numerous investors lose money.
Centre and States also loss revenues due to Dabba Trading. Commodity futures trading is a source of revenue to some state governments by way of levying stamp duty but that revenue will not accrue in case of dabba trading. Service tax payable by members is also evaded by unscrupulous brokers by indulging in dabba trading.
Tuesday, February 23, 2010
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