Taking the plunge

Hi Everyone,

I have finally decided to take the plunge, and invest in the market. These are really basic questions i have, and would be extremely grateful to anyone who can enlighten me.

My basic trading pattern would be very simple, buy shares in big-ish companies, on a long term basis. My initial plan was to buy some shares in something like Indian oil without any plan of selling it for the next few years at least.
Which demat account and broker i should go through?

I spoke to a guy at an Angel Broking franchisee and he told me that if i sold the share more than a year after i bought it, I wouldn't be legible to pay income tax on the amount i earn in the market, is that true?
Brokerage is 50p per 100rs traded. (is this ok?)

Another seemingly stupid question, but something that's been worrying me. given the current financial situation in our country, what if the company i hold my demat account with shuts? Do i stand to lose my shares

and ofcourse, any other tips would be very welcome!

Best Regards
Chris

open account with well known brokers for your demat account:

1. www.icicidirect.com is good for you if you intend to hold the shares for 1 year and above.
2. www.hdfcsecurities.com,
3. www.religareonline.com
4. www.sharekhan.com

Yes, if you hold any share for 1 year (without selling/buying in between that period), you get "long term capital gains" which is 100% tax-free.

You can "re-materialize" (get paper certificate from your broker who will get that from the CDSL/NDSL (where your shares are stored)) your dematerilized (electronic) shares into "shares certificate." then you need to keep it in a safe place. later you can de-materialize it with any broker and get the benefit/profit by selling it in demat form.

if you fear any broker may fail, you can also open account with any other broker and transfer your shares there.

happy investing..

Thanks a ton!

without selling or buying any shares in that period? or just not selling the shares i bought, for example, if i buy 100 shares in reliance, and 6 months later, i buy 100 shares in tata, the profit earned will get added to my taxable income right?

so i can basically get them converted to paper form, and keep them with me, and then re-materialize them into my demat account at a later date? neato!
if share records are held by CDSL/NSDL, then i dont think i have anything to worry about do i?

could anyone please elaborate?

Okay, so one can get shares in paper form. Tks for that bit of information.