DO's and DON'Ts for Investors

Do's

  • 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 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 Power of Attorney. However, Power of Attorney is not mandatory as per SEBI/Stock Exchanges. Before granting Power of Attorney, carefully examine the implications.
  • Receive contract notes for trades executed, showing transaction price, brokerage, GST, STT, etc., within 24 hours of execution.
  • Receive funds and securities/commodities on time within 24 hours from pay-out.
  • Verify trade details on the Exchange websites through trade verification facility for discrepancies.
  • Receive account statements periodically. For running account settlement, ensure settlement within the prescribed timeline (30 or 90 days).
  • Approach stock brokers, Stock Exchanges, or SEBI for grievances, following prescribed timelines.

DON'Ts

  • Do not deal with unregistered stock brokers.
  • Do not forget to strike off blanks in your account opening and KYC forms.
  • Do not submit incomplete account opening or KYC forms.
  • Do not fail to inform changes in trading account details like updating bank information.
  • Do not transfer funds for trading to anyone other than a stockbroker's official account.
  • Do not ignore emails, SMS from stock exchanges regarding trades. Raise concerns promptly.
  • Do not opt for digital contracts if unfamiliar with computers.
  • Do not share your trading password.
  • Do not fall for fixed/guaranteed return schemes.
  • Do not respond to fraudulent emails or SMS promising profits in stock market schemes.
  • Do not follow herd mentality in investments. Seek professional advice.