Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.
Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section.
Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.
Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.
Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.
Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.
Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.
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Prevent Unauthorized Transactions in your account. Update your Mobile Numbers/Email
IDs with your stock brokers. Receive information of your transactions directly from
the Exchange on your Mobile/Email at the end of the day.
Prevent Unauthorized Transactions in your demat account. Update your Mobile Number
with your Depository Participant. Receive alerts on your Registered Mobile for all
debit and other important transactions in your demat account directly from CDSL
on the same day. (Issued in the interest of Investors)
KYC is one-time exercise while dealing in securities markets - once KYC is done
through a SEBI-registered intermediary (Broker, DP, Mutual Fund, etc.), you need
not undergo the same process again when you approach another intermediary.
Investors need not issue cheques while subscribing to IPO. Just write the bank account
number and sign in the application form to authorize your bank to make payment in
case of allotment. No worries regarding refund since the money remains in investor's
Stock Brokers can accept securities as margin from clients only by way of pledge
in the depository system w.e.f. September 1, 2020.
Update your Mobile Number and Email id with your stock broker/depository participant
and receive OTP directly from the depository on your Email id and/or Mobile Number
to create pledge.
Pay 20% upfront margin of the transaction value to trade in cash market segment.
Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued
vide circular reference NSE/INSP/45191 dated July 31, 2020, and NSE/INSP/45534 dated
August 31, 2020, and other guidelines issued from time to time in this regard.
Check your Securities/MF/Bonds in the consolidated account statement issued by NSDL/CDSL