Untitled Document

Trading Account



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You need to open 3 different kinds of accounts to be able to buy and sell in the secondary market:

	An NRE/NRO Bank Account with a designated bank branch (Barjeel-Geojit has a tie-up with UTI Bank for the purpose)

	A Depository Account

	A Trading Account

(Don’t get disheartened! Barjeel will get everything organized for you.)

A PAN
Permanent
Account
Number

A trading account will enable you to buy and sell shares in
the secondary market.

One may open an NRE or an NRO account depending on whether or not the investment is to be repatriated. As mentioned earlier, an RBI permit is required in both cases. The trading account is always in the name of an individual but the account can be tied to a jointly held depository account provided the trading account holder is any one of the holders of the joint depository account. The following documents are required for opening a trading account: Documents to be submitted are
Application in the prescribed form One photograph Copy of passport with Visa pages Copy of RBI permit Authorisation enabling Geojit to debit your depository account to the extent of your pay-in obligation PAN Card
Trading and settlement
	Buying:
	Before you can place a buy order it is necessary to ensure that your PIS account is 100% pre-funded. On receipt of a buy order from you, Barjeel-Geojit will first confirm with UTI Bank that there is sufficient funds in your account and then execute the trade. Payment for the shares bought will be made by the bank directly to Geojit on presentation of the contract note. A digital contract note showing all relevant details of the transaction will also be sent to you within 24 hours of the trade. The shares bought will be credited into your depository account on the fourth working day after the trade.

	Selling:
	An order may be placed to sell any of the shares held in your depository account. As mandated by you, your depository account will be debited to the extent of your sales obligation. The net sales value will be credited into your PIS account along with a copy of the contract note on the fourth working day after the sales transaction. A digital contract note will be sent to you within 24 hours of the trade.

Note: All buy and sell transactions in a PIS account are required to be reported to the Bank on the same day as the transaction. Where the PIS accounts are with UTI Bank, reporting of all transactions will be done by Geojit. However, in instances where the PIS accounts are with banks other than UTI Bank, the responsibility for reporting the transactions to the bank rests with the client. Also, in such cases, the pay-in obligation will be met by the client on presentation of the contract note and against sales, a pay-out cheque will be given to the client on T+4.