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R. J. Stock Broking

Dos and Don'ts for Investors

DOs

  1. Read all documents and conditions being agreed before signing the account opening form.
  2. Receive a copy of KYC, copy of account opening documents and Unique Client Code.
  3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
  4. Receive all information about brokerage, fees and other charges levied.
  5. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
  6. If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI).
  7. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades.
  8. Receive funds and securities/commodities on time, as prescribed by SEBI or exchange.
  9. Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies.
  10. Receive statement of accounts periodically.
  11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for resolution.
  12. Retain documents for trading activity as it helps in resolving disputes, if they arise.

DON'Ts

  1. Do not deal with unregistered stockbroker.
  2. Do not forget to strike off blanks in your account opening and KYC form.
  3. Do not submit an incomplete account opening and KYC form.
  4. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
  5. Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
  6. Do not ignore any emails/SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
  7. Do not opt for digital contracts, if not familiar with computers.
  8. Do not share trading password.
  9. Do not fall prey to fixed/guaranteed returns schemes.
  10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks/securities promising huge profits.
  11. Do not follow herd mentality for investments. Seek expert and professional advice for your investments.