Do’s

Always deal with the market intermediaries registered with SEBI, stock exchanges. Collect photocopies of all documents executed for registration as a client, immediately on its execution. Ensure that the documents or forms for registration as Client are fully filled in. Always insist on contract notes from your broker Adopt trading / investment strategies commensurate with your risk-bearing capacity as all investments carry some risk, the degree of which varies according to the investment strategy adopted. Carry out due diligence before registering as client with any intermediary. Carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of the investor registration requirement for dealing through brokers. There are no guaranteed returns on investment in the stock market. Always keep copies of all investment documentation (e.g. application forms, acknowledgements slips, contract notes). Always keep copies of documents you are sending to companies, Trading Member, Registrar and Transfer Agent, etc. Send important documents by a reliable mode (preferably through registered post) to ensure delivery. Ensure that you have money before you buy. Ensure that you are holding securities before you sell. Follow up diligently and promptly e.g. If you do not receive the required documentation within a reasonable time, contact the concerned person; i.e. the Trading Member, company etc., immediately. Mention clearly whether you want to transact in physical mode or in Demat mode.

Dont’s

Don’t deal with unregistered brokers / sub – brokers, or other unregistered intermediaries. Don’t execute any documents with any intermediary without fully understanding its terms and conditions. Don’t deal based on rumors or ‘tips’. Don’t fall prey to promises of guaranteed returns. Don’t get misled by companies showing approvals / registrations from Government agencies as the approvals could be for certain other purposes and not for the securities you are buying. Don’t leave the custody of your Demat Transaction slip book in the hands of any intermediary. Don’t get carried away with advertisements about the financial performance of companies in print and electronic media. Don’t blindly imitate investment decisions of others who may have profited from their investment decisions. Don’t forgo obtaining all documents of transactions, in good faith even from people whom you know. Don’t forget to take note of the risks involved in an investment. Don’t get misled by guarantees of repayment of your investments through post-dated cheques. Don’t hesitate to approach concerned persons and then the appropriate authorities. Don’t get swayed by promises of high returns.