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Beware of fixed / guaranteed / regular returns / capital protection schemes. Brokers
or theirauthorized persons or their associates are not authorized to offer fixed / guaranteed / regularreturns /
capital protection on your investment or authorized to enter into any loan agreement
with you to pay interest on the funds offered by you. 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.
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Do not keep funds idle with the Stock Broker. Your stock broker has to return the
credit balance lying with them, within 3 working days in case you have not done
any transaction with in last 30 calendar days. 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 Exchangeas per the approved norms.
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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 thanonce 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 wouldbe 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
https://www.bseindia.com/static/investors/Claim_against_Defaulter.aspx
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Brokers are not permitted to accept transfer of securities as margin. Securities
offered asmargin / collateral MUST remainin 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.
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Always keep your contact details viz. Mobile number / Email ID updated with the stockbroker.
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.
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Don't ignore any emails / SMSs received from the Exchange for trades done by you.
Verify thesame 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
forth with.
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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.
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Please do not transfer funds, for the purposes of trading to anyone, including an
authorizedpersonor an associateofthebroker,otherthana SEBI registered Stockbroker.