Equity & Equity Derivatives

Equity is one of the key asset classes that provides ownership in a company. It's a popular choice among investors due to its potential for high returns and as a hedge against inflation.

Equity shareholders earn through dividends or price appreciation. While dividends are not mandatory, many companies do share a portion of their profits with shareholders and reinvest the rest. By investing in equity, an investor can benefit from capital gains. As a partial owner, the shareholder also gets voting rights on key company decisions.

Equity derivatives help investors manage the price risk associated with securities. Price risk refers to unfavorable changes in asset prices and is divided into unsystematic (specific) risk and systematic (market) risk.

Equity derivatives offer investors a way to gain from market movements in a short period. Their value is tied to the price of the underlying equity. These instruments are used to hedge risks or speculate on price changes. Futures and Options are the most commonly traded equity derivative products.

Currency Derivative

The global currency market is vast and operates 24/7, surpassing both equity and commodity markets in size. Currency derivatives are traded in the Foreign Exchange (FOREX) market, which is decentralized and global.

These contracts derive their value from the movement of currency pairs like USD/INR or GBP/INR. In India, currency markets are gaining popularity among retail investors. These derivatives, available as futures or options, help manage exposure to global currencies. They are influenced by economic, political, and interest rate factors, and offer diversification with lower margins and fewer instruments to track.

Securities Lending and Borrowings(SLB)

Investors can lend or borrow stocks temporarily for a fixed fee and time frame. Over 370 stocks are available on the NSE SLB platform, with contract durations ranging from one to twelve months.

SLB provides liquidity and boosts market efficiency. Investors who hold stocks long-term can lend them for extra income while retaining rights to dividends and bonuses. Borrowers, often traders, use SLB to cover short-term stock delivery needs. Ownership doesn’t transfer, and transactions are settled by clearing corporations, eliminating counterparty risk.

Commodity Derivative

The commodity market facilitates the trading of goods like metals, energy, and agricultural products. It helps diversify portfolios and offers protection against inflation, as commodities often behave differently than equities or bonds.

Commodity prices are volatile due to external factors like weather and geopolitical events. Hence, understanding the market is crucial. Trading is open from 9:00 AM to 11:30/11:55 PM, allowing access to global pricing. Investments can be made via futures, options, and ETFs. Key exchanges in India include MCX, ICEX, NMCE, and NCDEX.

Depository Participants

A depository holds financial securities in electronic form and maintains ownership records. Depository Participants (DPs) act as intermediaries between investors and the depositories.

In India, NSDL and CDSL manage electronic securities through DPs. These entities are SEBI-registered and enable easy, secure trading by maintaining assets in investors' Demat accounts.

Mutual Fund distributors

Mutual funds are ideal for investors with long‑term goals but limited market knowledge or time. Distributors connect investors with Asset Management Companies (AMCs) and simplify the investment process.

Through the Bachat MF app, clients can now manage mutual fund investments on the go, track performance, handle SIPs or lump‑sum purchases, download portfolio and capital gain reports, and access calculators, all in one place. They guide investors through transactions like buying, switching, or redeeming mutual fund units and provide periodic performance updates to help make informed decisions.

Initial Public Offerings [IPO]

An IPO is the process of offering a company’s shares to the public for the first time. It transforms a private company into a public one and helps raise funds for expansion, debt repayment, or stakeholder exit.

The company publishes a prospectus detailing the offering. Once listed, the stock can be freely traded. While IPOs can offer good returns, investors should evaluate the company thoroughly. We provide updated IPO details to help investors make informed choices. Companies may later raise funds again through Offer for Sale (OFS).

New Pension System(NPS)

NPS is a government-backed pension scheme regulated by PFRDA. Open to all Indian citizens aged 18-60, it allows contributions starting from Rs.500 per month or Rs.6000 per year.

We invest NPS funds on behalf of investors into equity and debt markets, offering returns between 8% and 10% annually. It provides post-retirement financial security and tax benefits under Section 80(C), with additional deductions beyond Rs.1 lakh.

Corporate Fixed Deposits, Bonds & Debentures

Company Fixed Deposit (Corporate FD) is a deposit, where the duration and rate of interest is predetermined and remains fixed. Financial and Non-Banking Financial Companies (NBFCs) usually offer these kinds of deposits. The returns are higher from corporate FDs as compared to bank FDs.

Corporate FDs are flexible as the investor can choose according to their preference from various durations, from monthly, quarterly, semi-annually or even annually.

If the investor has a goat to invest for a short term and with comparatively lower risk than the stock markets then Corporate FDs are a good tool of investment.

Bonds are fixed-income instruments issued by governments and corporations to raise capital. Their prices move inversely with interest rates. In India, they’re considered stable and liquid, ideal for conservative investors.

Debentures are unsecured debt instruments issued for medium to long terms. They’re not backed by collateral but rely on the issuer’s reputation and credit rating.

Mobile trading Services

Investors can now access real-time market data and execute trades directly from their smartphones. JK Securities offers a powerful mobile app that brings trading, mutual fund management, and portfolio tracking together in one place.

It’s designed for convenience, giving clients a complete trading experience anytime, anywhere.