Fact finding mission on capital markets of India

Hi Traderji and everyone,

Glad that i have come across this site. FYI, i am an indian residing elsewhere who would to like to familiarise myself on the various financial instruments that India offers for the investing public be it on NSE or BSE. Therefore, i would very much appreciate if someone could enlighten me on how do I go about it to participate in your derivative markets. My area of interest are on Equity derivates and commodities markets. Could someone assist me in my foregoing request as i could be of help to you guys in discussing the psychology of trading and etc.

Here are my short list of questions (not exhaustive):

1) Where do I begin with to request for information?
2) What are the products offered in BSE and NSE?
3) What are the daily volume and open interest in each contract?
4) Which are the most actively traded equity derivaties markets and
what are their underlying markets?
5) Is it possible to trade online?
6) What are the various licences that an individual can have to participate?
7) What are the requirements to qualify for each category of participants?
8) What is the licensing fee for each category and what are they entitiled to?

Thanking you in advance for a speedy response.

Rgds,

Rishi:thanx:

Dear Ramesh,

Thanks for the info. I checked their sites as you suggested. May I know if are actively trading right now? If so, please advise me on who are the most reliable brokers in terms of trade execution, trading platform and brokerage charges.

FYI, i am a high frequency trader. Therefore, I am looking for a very competitive brokerage and a professional trading platform. I dont mind paying a premium for the platform as long as the broker conducts his business with impeccable intergrity. I am planning to start trading in a month or two.

Awaiting for yr feedback sir. Thank you. I really appreciate it.

Rgds,

Rishi

Thank you, Rishi.

I am actively trading for the past decade. I use IndiaInfoline for my trading activities both in stocks and commodities segments. Along with this I also use ICICIDirect for my long term holdings.

As far my knowledge goes, though would not rate them best, but have been satisfied with their performance. I have traded the US futures markets using tradestation and I would say nothing to better that technology. But unfortunate, we do not have that type or near close to it in India.

I have also traded through refco, man securities and fxcm on the forex platform. Comparatively our Indian counterparts are reliable.

These are my personal experiences. I hear from my friends that the other brokerages which I mentioned here are also equally good. I believe you will have a great and amazing experience trading here in India.

Thanks Ramesh Ji.

Glad to hear about your trading credentials. I am in the same boat too. Been trading for a living for the past 15 years in both equity derivatives and commodities. I've traded softs, precious metals, grains in CBOT and NYCE. Looks like we have somewhat similar experiences. Are you a full time trader like me sir?

I appreciate if you could shed some light on my concerns here:

How good is your trading platform in India and which one are you using currently?
Which data providers are the best for a high frequency trader like me? No time lag if u know what i mean.
My trades are 80% intraday, 20% long term. Never dealt with options though.
As a high frequency trader like me, i need to keep my brokerage as low as possible for a viable trade plan.

Fyi info i'll be in India come September to visit some brokerage houses in Hyderabad or Bangalore as i am south indian in origin. Can you please guide me here whom shall i see in both these cities? I am looking for first class parties whom you guys deem professionals in their dealing with clients. Pls advise me the do's and dont's and whom shall i avoid.

Ramesh Ji, may be we could meet up in India if time permits for further discussions.

Anyway, thanx again. Looking forward to hear frm you soon.

Happy trading Sir.

Rishi

Thanks and welcome Mr. Rishiji.

It was great to know more about you and your visit to India, preferably Bangalore. We will sure meet sir. If you are used to Tradestation like execution and speeds nothing to math them here, let me be frank.

India Infoline, indiabulls, sharekhan are doing good. Though all have their own problems, we do not have trading allowed from the charts. Amibroker has some beta version released and that is linked with Interactive brokers. IB, I think you can inquire through your sources, they offer global exposure.

I have been a full time trader, but still have other business to look after. Even I shy away from options, more so because I am very much satisfied with my cash and futures positions and earnings.

Some times trading platforms get problems with server space at closing hours, all these problems are being sorted on a slow phase. Things are changing as day move by.

We can share more probably when we meet.

For trading in equities, no special document is required.

But for trading in derivatives, you need to produce some proof that you can bear the risk. Ex: networth certificate from CA, etc. There was a circular few months ago. Please google it.

Dear Ramesh Ji and Bunny Ji,

Thanks for the info.

Can you guys clarify me on this pls? From where I trade and years of experince, most exchanges do have various categories of market participants be it in equities, equity derivates of commodities futures. These are some of those categories which i can recall off-hand:

Proprietary traders
Institiutional traders
Hedge funds
Floor Traders (Locals)
Retailers (No licence required, any tom, dick and harry also can) and so on.

Except for the retailers, the rest are licensed whereby one need to pass certain examination to qualify. Each of these categories are entitled to certain benefits in terms of brokerages, ease of execution, professional trading platforms directly linked to the respective exchanges and superior charting services (of course for a fee). Of these, retailers are the least beneficiaries, therefore make up the highest percentage of losers among all the trading participants mentioned above.

So, naturally my enquiry here is, Are there such cagetories in India be it in BSE or NSE? Or is it one rule applies to all across the board?

Bunny Ji, since you are at the epicentre of the financial markets (Mumbai) and closer to the action, maybe you could dissemminate this specific information for the benefit of not only for me but to the rest of the members in this forum.

Thanks guys.


Rgds,
Rishi

Quote: TOO REFINED AN EYE WILL SEE PATTERN EVERYWHERE

Hi members,

Can someone pls list down the most actively traded equity derivaties markets and stocks futures starting fm the most liquid to the least.

And for those who are familiar in commodities futures, please list them too.

Thanks guys.

Rgds,
Rishi