NRI Trading Account Guide
Kotak Neo provides its customers a trading window to execute its trading orders on the National Stock Exchange of India Ltd. (NSE) as well as the Bombay Stock Exchange (BSE).
An NRI Customer can place both market and limit orders.
Limit order is an order wherein the trader/investor provides a maximum price per unit of a Buy order and the minimum price per unit of a Sell order. The actual transaction can be at a price more favorable than the price predefined by the investor.
Market Orders have different interpretations for both NSE and BSE.
Market Orders in NSE: This is an order to buy or sell securities at the best price available in the market at the time the order is routed to the exchange. Thus increasing the chances of the execution of the order. In case of market orders for NSE, all market orders placed which are not executed become limit orders at the last traded price. Where a market order is not executed fully, it becomes a limit order for the balance quantity at the last traded price.
Market Orders in BSE :
In case of market orders placed on BSE: The market orders are routed to the Exchange with the best offer for a buy market order and for a sell market order the order will be routed with the best bid offer. At any point of time during the market hours it is found that a particular bid or offer is no longer present in the exchange this market order gets cancelled suomoto by the exchange. In case of part execution of market order, the remainder order gets converted into alimit order at the last executed price.
Market orders can be placed only during market hours – 9.30am -3.30pm IST
The NRI investor can trade in shares which are there in the Cash segment which are traded in the exchanges i.e. NSE and BSE. There has been seen a steady rise in the number of companies getting listed in these exchanges thus increasing the number of securities an investor can trade in.
The customer can invest in the market through the online mode :website online trading / keatproX / mobile stock trading (mst) Alternatively the customer can also place orders in the market over the phone "call & trade".
Once the order is placed in the market. The investor can check the status of the order on real time basis by monitoring the 'check order status' on the website online trading.
Once the order is executed/ traded, a digitally signed contract notes is generated which provides the investor with all the details of the transaction. The same is sent via e-mail to the registered email ID for the orders executed during the trading day. Also the digitally signed contract notes are also made available on the trading platform for future references for the investor.
It is possible that an order which is accepted by the exchange but the trade does not get executed. This is generally seen in case of a limit order, where it might remain totally unexecuted if there is no matching order.
For example, if a trader places a sell order for 100 shares @ Rs. 100 per share. It might remain totally unexecuted if there are no buyers or buy orders for the share for a price of Rs. 100 or more. Further, an order can get executed for any quantity less than or equal to the order quantity. On part execution, the original order is converted into an order for the balance quantity against which another trade can happen. Since these are different trades, it is possible that the trades are executed at different price.
In case of market orders placed on NSE, even a market order might remain unexecuted if there are no matching orders. In such cases, the unexecuted portion of the market order is converted into a limit order at the last traded price for the balance quantity. For example, when the last traded price of a share was Rs. 100, if a market order is placed to sell 100 shares, the sell order will be matched against all limit orders for buying the shares. In case there are no or insufficient orders for buying 100 shares, the unexecuted market order is converted automatically into a limit order to buy sell 100 shares at a price of Rs. 100 (the last traded price). In case the order was partly executed and the last execution took place at Rs. 95, the price of the limit order for the balance quantity would be Rs. 95.
In case of market orders placed on BSE, all buy market orders go to the Exchange with the price of the best offer and all sell market orders go to the exchange with the price of the best bid offer. In case at that point of time it is found that that particular bid or offer is no longer present in the exchange this market order gets cancelled by the exchange. In case of part execution of market order, the remainder order gets converted into a limit order at the last executed price
The investor does have an option of modifying an order which is already placed but not executed. The same can be done through the online portal, where the customer has an option of “Modify” an order. However one must note that the modify an order option will not work if the order is already queued with the respective exchanges .i.e. confirmation is awaited from the exchange for the acceptance of the placement of the order or any modification/cancellation request. In case the order is already partly executed, only the unexecuted portion of the order can be modified.
The customer does have an option of cancelling the order at any point of time before the execution of the trade. In case the order is already partly executed, only the unexecuted portion of the order can be cancelled.
Yes, The customer can route orders in the market post the market hours for the day. Orders placed after trading hours are queued in the system and are send to the exchange whenever the exchange next opens for trading. The same can be placed just by selecting the AMO (after market order) option while placing an new order in the market.
The basic funding in the account will happen through the customers savings account – (NRE/NRO) Whenever the customer wants to trade in the secondary market the customer needs to have his PINs (NRE/NRO) account funded. It is only after the PINS account is funded that the customer gets a window to execute his transactions in the market. Once the PINS account is funded the customer gets a freeway to trade with the amount available in the PINS account. When a buy order is routed the amount in the PINS account gets debited and the Demat Account get credited with the number of shares provided the order gets executed in the market. Similarly when a sell order is routed the shares gets debited from the demat account and the funds once realized are credited to the PINS account.
The transfer of funds from the Savings Account (NRE/NRO) to the PINS account can be facilitated through the Online trading platform. The same cannot be done through the banking platform.The customer can easily transfer 'From' savings account 'To' pins account & viceversa. Once the same has been selected the investor comes to know about his current balances in said accounts. The transfer needs to be initiated by the customer through this section. It is an instant transfer and the trades can be executed post the PINS account funding.
The trade executions are confirmed online and the trading history is updated immediately. The customer can check the same in Check Order Status, on website online trading. The status of each order is updated on a real-time basis. In addition, you will receive e-mail confirmations. You can choose to receive the e-mail confirmation either for each trade when it is executed or a single one for all trades at the end of the day. The contract note will be send to you by mail at the end of the day. The contract notes also get updated on the trading platform in the contract notes section for the customers future reference.
Contract note is a statement of confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member and client in respect to the trades stated in that contract note. Contract notes are made in duplicate, where the member and client both keep one copy each.
The customer can view the stocks held by him online at any point of time by visiting the DP – Demat section. It is here that the customer can also get a demat transaction history for a set period. This is useful for an investor to keep a tab on his Investments.
Online Trading for NRIs- Place an order
This facility is available only for online trading customers.
Yes NRI clients can open Trading account with Kotak Neo
It's simple! Apply Online, call our number 30305757 or email us @ nricustomerservice@kotak.com
a. Normal Order:
When you buy/sell shares it will be automatically adjusted against the shares already in your DP account or against your pins account balance.
Place Multiple Order
This facility is available only for online trading customers.
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Click on place multiple orders.
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Choose which action (buy/sell) you would want to perform on the chosen scrip and also specify the quantity, price, and type of order in each scrip. You may want to specify a stop loss price in the required space, if you desire.
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After doing so, you may click on the place order button. You will be led to a screen where you have to enter your trading password and click on the confirm button.
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The screens will guide you from there on.
Note: On specifying the quantity to be bought/sold, the system will display the current market Price by default.However you may choose a price of your own too.
Basket order is a facility provided by kotakneo.com, which allows you to place an order in 5 scrips with a single click.All you need to do is select Place Multiple orders in Equity and select your scrips and buy/sell them all at one go.
- to that extent shall be released.
Money Transfer
Yes. It is necessary that you open a bank account with our designated banks Kotak Mahindra Bank.
Faster credits, smooth flow of transactions and early commencement of trading are the advantages you will enjoy. You can transfer funds online and start trading. Further, if we have to make a payment to you, funds can be credited to your bank account directly
If the funds transferred are not reflecting in Available Cash Balance then you need to check on the bank site through net banking whether the funds transferred have been debited from the bank account. If yes then please get the Bank Reference number and provide the same to our Customer Care desk through the contact care numbers so that the funds can be uploaded in the Available Cash Balance. You can reach our Customer Care executives at 1800 209 9191 / 30305757 (prefix city STD code) / 1800 22 22 99
You can transfer funds to your trading account by following the steps mentioned below:
- Log onto www.kotakneo.com
- Once inside the trading section, Click on Money Transfer You will be presented with a set of boxes. Choose From Saving To Pins and click on Submit.
- Choose your Bank name and the amount to be transferred Click on Go.
- Amount will get transferred to your requested bank account.
As soon as you transferred the funds from your saving account to Pins account you pins account balance on available limit page will get increased by said amount & you will get the limit on your limit page by reducing 1.25% from total amount.
- Log onto www.kotakneo.com
- You will be presented with a set of boxes.
- Choose From Bank To Mutual Funds and click on Submit.
- Choose your Bank account no and the amount to be transferred. Click on Go.
- Amount get transferred to you Mutual fund/IPO account.
Please write to us through Solve Your Queries in the Customer Service menu on the trading page quoting the bank name, bank reference number, the date of transaction and the amount of transaction or call us on 30305757
The funds that you transferred would be immediately added to your Available Cash Balance. As these funds are transferred to your Pins account you will not get any ledger entry in your trading ledger for such transfer.
If the funds transfered are not reflecting in Available Cash Balance then you need to check on the bank site through net banking whether the funds transferred have been debited from the bank account. If yes then please get the Bank Reference number and provide the same to our Customer Care desk through the contact care numbers so that the funds can be uploaded in the Available Cash Balance. You can reach our Customer Care executives at 1800 209 9191 / 30305757 (prefix city STD code) / 1800 22 22 99.
Check Order Status
This facility is available only for online trading customers.
As an investor, after placing the orders for a scrip, you would be led to a screen which would show the reference number of your order.This screen would also direct you to check the order status link. Once the customer clicks on this link , he would be able to make out whether his order has been traded or not. In case it is an order that is still not executed , there would be a mention to the effect stating that the order is open. Under the same link, the investor can also change the order or cancel it if he/she so desires. Once the order gets traded it gets moved to the check trade status link.
Call & Trade
This facility is available only for online trading customers.
Call & Trade is a service offered by Kotak Neo for its customers, which provides customers with a facility to trade over the phone.
Kotak Neo provides you a number 30305757. You can call from anywhere in India on our number, without incurring any long distance phone charges.
Once you call our number, our Call & Trade dealer will ask a few questions to verify your identity. Only after your identity is verified, you would be able to place/ modify/ cancel orders.
Yes. You can use Call & Trade for getting live rates prevailing in the market.
No. Order placed in T2T or suspended scrips segment cannot be modified or cancelled.
Disclaimer:
Kotak Neo does not take any responsibility and will not be responsible for any claims against losses incurred due to incorrect information related to shares in the demat account or margin available in the trading account. The details of the quantity and shares forwarded to the Call & Trade executive for order execution will have to be verified by the client while placing the order.
Also Kotak Neo does not take any responsibility for non-placement of order with respect to the time and date. In case of non-placement of order on the day and of request forwarded, the same will stand cancelled and fresh request on any other day/ time have to be forwarded.
Please click here to view the charges applicable.
Yes. Currently, there is no limit on the number of orders that can be placed per call.
No. For any inquiry, you need to call up our Customer Care on 30305757
No. For any inquiry, you need to call up our Customer Care on 30305757
Yes. Details of the order placed through phone can be viewed on the site.
No. Status of orders placed using Call & Trade facility can only be confirmed through a Call & Trade Dealer only.
Yes. AMO orders can be placed from 4:15pm to 6:00pm & Post closing orders from 3.50pm to 4:00pm.
You can view free research reports and recommendation for equity on the website www.kotakneo.com ,
the path for the same Login to you account on www.kotakneo.com > Equity > Equity Research
AMO
This facility is available only for online trading customers.
AMO stands for After Market Order. It is a facility that Kotak Neo extends to its customers whereby they can place orders even after the trading hours of a particular day.
An AMO has the following advantages:
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It allows the customer to place an order even after the regular trading hours (9.00 a.m. to 3.30 p.m.) during which time he /she might have been busy.
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Based on the fluctuations in the Market on a particular day and taking into account factors such as the closing price of a particular scrip, recommendations on scrips given by Kotak Neo.com, the customer might want to place an order using AMO which would be executed when the market opens the next day.
Now customers can place After Market Orders after the trading hours of a day. The process is simple and AMO's can be placed in two ways:
- After Market Orders can be placed by the customer himself by logging into his Kotak Neo trading account and choosing AMO.This facility is available in the time slots mentioned below:
Anytime between 3.30 p.m. to 1.00 a.m.
Anytime between 4.30 a.m. to 9.00 a.m.
An AMO can be placed with a price band of +/-5% of the closing price at the end of the day. Any AMO for scrip that is beyond this price band would not be placed.
All AMO orders will be placed in the market in the order of the price bands i.e all market orders will be placed first and then all orders on the basis of price band would be placed in ascending order.
Any AMO order placed can get cancelled before it getting placed at the exchange, in the absence of sufficient margins at the beginning of the day margin calculation process. Hence clients are requested to check the orders status during the market hours in the order report to find the status of the AMO order placed.
It is advisable to place limit orders i.e at a specific price that is more or less closer to the previous day's closing price instead of market orders i.e orders where price is quoted at 0, as there is a possibility of getting a freak rate because market orders are executed at the best possible counter rate.
eg. Reliance Industries closing price on 10/11/2005 is Rs.785.72
In case an AMO market order (i.e rate is 0) is placed for buy 100 shs of reliance and if this is the first buy trade to hit the market on 11/11/2005 and on the other end if the first sell trade to hit the market is Rs 825/- then the buy order would get executed at Rs. 825/- which would be a very high buy.
NOTE: The time period between 1.00 a.m. to 4.30 a.m. will be utilized for site maintenance and any AMO placed during this time will not be executed and a message stating the same will appear.
- After Market Orders can also be placed through CALL & TRADE FACILITY also and our customer care executives will place the order on your behalf. The customer can place an order on phone by calling at 1800 209 9191 (toll free from landline and mobile) 3030 5757 (To dial from mobile phone prefix your city STD code.) 1800 222 299 in the time slots mentioned below:
Anytime between 3.30 p.m. to 5.00 p.m. & 5.30 p.m. to 6.00 pm in the evening
For particular scrip, An AMO can be placed with a price band of +/-5% of the closing price at the end of the day. Any AMO for scrip that is beyond this price band would not be executed. For example:
If the closing price of a scrip X on Monday is 100 Rs., the customer can place an AMO within the price band of Rs. 95 to Rs.105.