- Only opt for electronic contract notes/financial statements (e-mail) if you are computer-savvy and have your own e-mail account.
- Do not ignore emails/SMS received from the Exchange for trades you have made. Check the same with the Contract Notes/Statement of Accounts.
- Ensure that the remittance of funds/securities is received in your account within one business day of the remittance date. Make sure you receive contract notes within 24 hours of your trades.
* Deal only with registered intermediaries – check the registration certificate of the intermediary you are dealing with. It allows recourse to regulatory action.
* Beware of fixed/guaranteed/regular return/capital protection schemes. Brokers or their authorized persons or any of their associates are not permitted to offer fixed/guaranteed/regular returns/capital protection on your investment or permitted to enter into a loan agreement with you to pay interest on funds you offer. Please note that claims for funds or securities given to the broker under any indicative yield arrangement/agreement will not be accepted by the Exchange in the event of default by your broker.
* Please ensure that you complete all required details in the “KYC” document yourself and receive a duly signed copy of your “KYC” documents from your broker. Check all the conditions that have been agreed and accepted by you.
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* Always keep your details to know. Updated mobile phone number/email id with stockbroker. Email address and mobile phone number are mandatory and you must provide them to your broker for updating Exchange records. You should raise the issue with Stock Broker/Exchange immediately if you are not receiving messages from Exchange/Depositories regularly.
* Only opt for electronic contract notes/financial statements (e-mail) if you are computer-savvy and have your own e-mail account.
* Do not ignore emails/SMS received from the Exchange for trades you have made. Check the same with the contract notes/account statements received from your broker and immediately report any discrepancies, if any, to your broker in writing and if the stockbroker does not respond, please notify the Exchange immediately/ depositories.
* Check the selected account settlement frequency. If you have opted for a current account, please ensure that your broker settles your account and sends account statements regularly and in any case no later than once every 90 days (or 30 days if you have opted for settlement in 30 days). Please note that claims for a period longer than 90 days will not be accepted by the Exchange in the event of default by your broker.
* Regularly check Consolidated Account Statements (CAS) received from custodians and reconcile them with your trades/transactions.
* Ensure that the remittance of funds/securities is received in your account within one business day of the remittance date. Make sure you receive contract notes within 24 hours of your trades.
* Transaction Verification feature is also available on the NSE website which you can use to verify your executed transactions.
* Do not keep unused funds with the stockbroker. Please note that requests for funds, without transactions on the exchange, will not be accepted by the Exchange in the event of default by your broker.
* Brokers are not authorized to accept the transfer of margin securities. Securities offered as margin/collateral MUST remain in the client’s account and may be pledged for the benefit of the broker. Clients are not permitted to place securities with the Broker or the Broker’s associate or the Broker’s Approved Person for any reason. The broker may take securities belonging to clients only for settlement of the securities sold by the client.
* Don’t fall prey to scammers who send decoy emails and SMS to trade stocks/stocks promising huge profits.
* Be careful when executing the PoA (power of attorney) – specify all the rights that the securities broker can exercise and the time period for which the PoA is valid. It can be noted that PoA is not a mandatory requirement according to SEBI/Exchanges.
* Check the messages sent by the exchanges on a weekly basis regarding the balances of funds and securities reported by the trading member and immediately report a concern to the exchange if you notice any discrepancy.
* Do not share the password (internet account) with anyone. It’s like sharing your security key.
* Please do not transfer funds, for trading purposes, to anyone, including an Approved Person or Associate of the Broker, other than a SEBI-registered stockbroker.