Advisory for Investors

Key Investor Advisories

1. 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 to enter into any loan agreement with you to pay interest on funds offered by you. In case of default of a member, claims for funds or securities under any such arrangement will not be accepted by the relevant Committee of the Exchange as per approved norms.
2. Do not keep funds idle with the Stock Broker. Your stock broker must return the credit balance lying with them within three working days if you have not transacted within the last 30 calendar days. In case of default of a Member, claims for funds and securities without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per approved norms.
3. Check the frequency of accounts settlement you have opted for. If you have opted for a running account, ensure your broker settles your account not later than once in 90 days (or 30 days if you opted for 30-day settlement). Norms for eligibility of claims for compensation from IPF, in case of a defaulter member, are available on the Exchange website.
4. Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/collateral must remain in the client's account and can only be pledged to the broker by way of ‘margin pledge’ created in the Depository system. Clients must not place any securities with the broker, associate, or authorized person for any reason.
5. Always keep your contact details (mobile number/email ID) updated with your stock broker. Providing these is mandatory for updation in Exchange records. Contact your Stock Broker/Exchange immediately if you are not receiving messages regularly.
6. Don't ignore emails/SMSs from the Exchange about trades done by you. Verify them against Contract Notes/Statements of Account from your broker and report any discrepancy in writing immediately; escalate to the Exchange/Depositories if your broker does not respond.
7. Check weekly messages from Exchanges regarding funds and securities balances reported by your trading member, compare with your weekly statement of account, and raise a concern with the exchange immediately if you notice a discrepancy.
8. Do not transfer funds for trading purposes to anyone — including an authorized person or associate of the broker — other than a SEBI-registered Stock Broker.

Related: Regulatory & Disclosures →  ·  Downloads & Resources →