Dos and Don'ts for Investors
DOs
- Read all documents and conditions being agreed before signing the account opening form.
- Receive a copy of KYC, copy of account opening documents and Unique Client Code.
- Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
- Receive all information about brokerage, fees and other charges levied.
- Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
- If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI).
- 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.
- Receive funds and securities/commodities on time, as prescribed by SEBI or exchange.
- Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies.
- Receive statement of accounts periodically.
- In case of any grievances, approach stock broker or Stock Exchange or SEBI for resolution.
- Retain documents for trading activity as it helps in resolving disputes, if they arise.
DON'Ts
- Do not deal with unregistered stockbroker.
- Do not forget to strike off blanks in your account opening and KYC form.
- Do not submit an incomplete account opening and KYC form.
- Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
- 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.
- Do not ignore any emails/SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
- Do not opt for digital contracts, if not familiar with computers.
- Do not share trading password.
- Do not fall prey to fixed/guaranteed returns schemes.
- Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks/securities promising huge profits.
- Do not follow herd mentality for investments. Seek expert and professional advice for your investments.
