As a trader, you can invest in many asset classes in India, including equities, commodities, currencies, derivatives, and more. The financial market is divided into different segments with unique trading rules to simplify investing in various categories. Hence, if you want to trade in agricultural commodities like cotton and coffee and the shares of ABC company, you can’t do it under one segment. You have to trade them separately in different exchanges from your broker’s platform or app like Angel One. Separate categories facilitate trading and transactions. So, if you want to invest in multiple asset classes, you need to enable the segment in the Angel One app.
Types of Segments:
Following are the various segments of the stock market.
Equity Cash (Capital Market)
It classifies all the transactions involving buying and selling of shares listed on the exchange. In India, stocks from listed companies trade in NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). So, you will have to activate the equity segment in the Angel One app to transact in the equity market.
Mutual Funds
Mutual Fund is a financial instrument in which funds are collected from multiple investors to invest in assets such as stocks, money market instruments (Certificate of Deposit, Commercial Paper, Treasury Bills, and Call Money), and bonds. With Angel One’s Mutual Funds segment, you can invest in various Mutual Funds either in lumpsum or through SIP.
Equity & Index F&O
An equity derivative is a class of financial contracts that invest in equities as the underlying asset (equity stocks/shares in the secondary market). For instance – Reliance Futures is an equity derivative. Its price varies with the movements of the Reliance Share Price. Similarly, for an Index derivative, the underlying asset is a group of indices such as NIFTY, BANK NIFTY, and FINNIFTY. In this segment, you can trade only in the group of assets and not in the individual security.
Futures and Options are the two derivatives available for trading in this segment. In the Futures contract, an investor agrees to buy/sell a particular asset at an agreed-upon rate on a future date. However, in the Options contract, the investor has a right but is under no obligation to buy/sell the underlying asset at a specific price on a fixed date. With Angel One, you can trade in futures and options in NSE-F&O (National Stock Exchange – Futures & Options) segment.
Commodities
Indian investors can diversify their portfolio by investing in various commodities like gold, crude oil, copper, cardamom, rubber, and energy in the Commodities market. MCX (Multi-Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange of India) are the two exchanges under the Commodity segment at Angel One. NCDEX has the leadership in agro products, while MCX predominantly leads gold, metal, and oil markets.
Foreign Exchanges
If you want to invest in foreign currencies, you will have to activate the currency segment. It allows you to buy and sell foreign currencies at the market rates electronically. One invests in the Forex market for various reasons – gaining exposure to the largest market in the world, portfolio diversification, and profit opportunities from fluctuating currency rates at the international market. Major participants of this segment are corporations, central banks, retail forex brokers, hedge funds, and individual investors. You can activate the NSE-FX segment at the Angel One platform to trade in the Forex market.
How do I check which segments are activated?
To check which segments are currently activated on your Angel One account, follow these steps:
- Go to your profile on the mobile app or web platform
- You can see activated categories under the ‘Active Segment’ head
Why do we need to activate segments?
The right mix of equity, future & options, commodities, and currency can help build a diversified portfolio while earning good returns. Activating various available segments will open more opportunities for you to invest. So, if you want to increase your market exposure, start the different sections in the Angel One app.
Documents required to activate segments
When you open an account with Angel One, the Equity Cash and Mutual Funds segment gets activated by default. Hence, if you want to trigger another category, you can submit the necessary documents during In case you wish to activate the segments, later on, you can do so by submitting either of the financial statements/documents.
- Last 6 Months Bank Statement
- Demat Account Holding Statement
- Salary Slip
- Mutual Fund Statement
- Bank Fixed Deposit Receipt
- ITR Acknowledgement
- Form 16
If you want to activate the NSE F&O segment and have holdings in your account, the same will suffice as income proof. So to initiate the segment, all you will have to do is authorise the activation request.
How can I activate segments?
Follow the steps mentioned here to activate segments on the Angel One app:
- Click on the signature sign on the right side of the ‘Active Segment’ head under your profile on the mobile app.
- Select the segments you want to activate, choose the document type, and upload it.
- Check the T&C box and click on ‘Proceed to Activate’.
- Enter the OTP, click on ‘Authorize’, and re-login to start trading.
Once you have successfully placed the activation request, you will receive an SMS and an email acknowledging the activation. Your segment activation will get updated in your profile in the next 24-48 hours.
Conclusion
Now that you know about the different categories of the stock market, activate the segments to invest in. This segmented trading will help you in diversifying your portfolio and achieving your financial goals. Use Angel One mobile app to activate these segments and conveniently enhance your investment strategy.
Frequently asked questions on Segment Activation
1. What is segment activation?
Segment activation is a process that allows investors to select different asset categories to invest in other exchanges. You can choose different segments like equities, mutual funds, F&O, commodities, and currency for trading in the Angel One app by activating the segments.
2. How can I activate segments in the Angel One app?
If you want to start any category, you can do it when signing up or later on by completing the documentation process or later on.
3. How long will it take for the segment to get activated?
Angel One app takes only one-two business days to activate the segment. You can start trading in the category from the second day.
4. What are the documents required for segment activation?
You need to submit either of the following documents to activate a segment.
- Last 6 Months Bank Statement
- Demat Account Holding Statement
- Salary Slip
- Mutual Fund Statement
- Bank Fixed Deposit Receipt
- ITR Acknowledgement
- Form 16
If you want to trade in the NSE F&O segment and have holdings in your account, you can use those as income proof.
5. Can I provide a 3 months bank statement instead of 6 months?
No, as per the guidelines, you need to mandatorily provide a 6-months bank statement for activating the F&O/Currency/Commodity segment.
6. Do I need a minimum holding in my account to activate the segments?
There is no minimum holding value required to activate the segments.
7. How much time does it take for the segment to be activated?
Once you have placed the request, your segment will be activated within 24-48 hours.
8. Is there any physical form that I can submit to activate the segments?
Download the form from the Angel One website here, fill it and send it along with the required documents to our Hyderabad office. The segment will be activated within 24-48 hours after the documents have been received.
Hyderabad Office Address – Osman Plaza, H.No. 6-3-352, Banjara Hills, Road No. 1, Hyderabad, Telangana 500001
9. How will I get activation confirmation?
You will receive a confirmation mail on your registered email ID.
10. How will I come to know if my segment activation request has been rejected?
You will receive an email on your registered email ID with the reason for rejection.
11. How can I deactivate the segment?
You can deactivate a specific segment by writing to us using Angel Assist in your mobile app as we currently do not have an online option to deactivate segments.
