Take a holistic view of your Financial Goals and invest accordingly
Invest only after adequate Research / Analysis
Be aware that value of your investments is subject to market movements. There is no guaranteed returns like bank deposits
Deal only with SEBI Registered Brokers / Depository Participant (DP)
Check and satisfy yourself about the credentials and experience of the intermediary
Ensure you have PAN Card and Bank Account
Strike off all blank / irrelevant fields / clauses in the agreement(s) executed
Registration of Know Your Customer (KYC)
Obtain Unique Client Code (UCC) from Stock Broker
Get all your Trades executed only through your UCC
Insist that your Demat A/C number is preprinted / pre stamped on the Delivery Instruction Slips (DIS)
Be aware that an intermediary or its staff making a recommendation, is required to disclose their interest/ position in that scrip
If you avail internet trading facility, grant Power of Attorney (PoA) only for auto debit of funds /securities for settlement obligation for investment / subscription
Opt for Digital Contract Note/s
Ensure adequate infrastructure and safety measures
Make payments only through A/c Payee Cheques / Drafts / EFT to the stock broker and not to the sub broker, dealing persons / employees of broker / sub broker
Keep a record of all instructions and transactions with broker / DP correspondences of complaints against broker / DP
Ensure that Contract Note (physical or digital) is signed by an authorized person
Keep track of your portfolio in your Demat A/c on a regular basis
In case of any dispute / difference / grievance, contact the compliance officer of Broker / DP
Be aware that all brokers/ DPs are required to have a dedicated Email ID for registering your complaints
Be aware that investor complaints against brokers / DPs are displayed on the websites of SE / Depositories
Approach SEBI, if your grievance is not resolved
Be aware that details of arbitration proceedings and penal actions against brokers / DPs are displayed on the websites of SE / Depositories
Freeze your Demat A/C, if you are not using it regularly
DON’TS
Do not invest with Borrowed Money
Do not expect unrealistic / guaranteed returns
Do not be influenced by advertisement / advices / rumours / unauthentic news promising unrealistic gains and windfall profits in mass media
Do not be guided by astrological predictions on share prices and market movements
Do not fall prey to market rumours / ‘hot tips’/ ‘opportunity knocks only once’ kind of advice
Do not invest in scrips on sudden spurts in trading volumes / prices without proper research
Do not be swayed by market sentiments
Do not invest on any explicit/ implicit promises made by anyone
Do not indulge in impulse investing
Do not participate in Un-authorized and illegal trades outside the stock exchange mechanism (dabba trading)
Do not give wrong / contradictory / incomplete information in the client registration form
Do not execute PoA in favour of employee / representative of broker / DP
Do not reveal your trading / demat account passwords to any body
Do not allow others to trade in your account
Do not trade in anybody else’s account
Do not pay money to anyone to trade on your behalf for assured returns
Do not entrust management of your money / securities with broker / sub broker
Do not sign blank forms (account opening forms/ DIS / Demat Request Form (DRF)
Do not engage in practices that distort demand / prices artificially
