Glossary
What is the Glossary Section?
The glossary provides simple, easy-to-understand explanations of frequently used terms and abbreviations related to stock trading, compliance, and account opening at Firstock. It helps users, especially first-time investors, navigate technical jargon they might encounter during onboarding or while using the trading platform.
Key Terms You Should Know
PAN (Permanent Account Number)
A 10-digit alphanumeric code issued by the Income Tax Department. It serves as a unique identifier for all financial transactions and is mandatory for opening a demat and trading account.
Aadhaar
A 12-digit unique identity number issued by UIDAI, used as a proof of identity and address. An Aadhaar linked to a mobile number is essential for eKYC and account opening.
KYC (Know Your Customer)
A regulatory process that involves verifying a client’s identity, address, and financial status before providing financial services. This includes PAN, address proof, and income proof (for F&O).
IPV (In-Person Verification)
A SEBI-mandated step where the broker verifies the identity of the person opening an account via video or physical verification. It ensures that the individual matches the submitted documents.
DDPI (Demat Debit and Pledge Instruction)
A document that authorizes the broker to debit shares from a client’s demat account when they place a sell order. It replaces the older POA (Power of Attorney) method and streamlines the selling process.
FATCA (Foreign Account Tax Compliance Act)
A U.S. law requiring financial institutions to report accounts held by U.S. taxpayers. All clients must declare their FATCA status when opening a Firstock account.
FEMA (Foreign Exchange Management Act)
An Indian regulation governing foreign exchange transactions. Applicable to NRIs opening accounts and transacting in Indian markets.
PIS (Portfolio Investment Scheme)
An RBI-regulated scheme allowing NRIs to invest in Indian equities using their NRE or NRO accounts via authorised partner banks.
Non-PIS
An alternative route for NRIs to invest in the Indian stock market using only their NRO account. It is simpler, has lower costs, and doesn't require RBI permission.
BO ID (Beneficial Owner Identification Number)
A 16-digit number identifying a demat account holder. It includes the DP ID and the client ID and is needed for transactions like pledging or transferring shares.
AMC (Annual Maintenance Charges)
The yearly fee charged by brokers for maintaining a demat account. Firstock currently charges zero AMC for resident and NRI accounts.
DP (Depository Participant)
A registered agent of a depository (like CDSL) who manages demat accounts for clients. Firstock acts as your DP when you open a demat account.
SEBI (Securities and Exchange Board of India)
The regulatory authority overseeing India’s securities market. It sets rules for KYC, brokerage operations, and investor protection.
Why Is the Glossary Important?
Many users—especially first-time traders—encounter terms like IPV, DDPI, or FATCA without knowing what they mean. This glossary serves as a quick reference to demystify these technical words and ensure better understanding and compliance while using Firstock’s services.
