Investor awareness

Check the registration first

Anyone executing trades in securities for you in India must be registered with SEBI as a stock broker and be a member of the exchange concerned. A stock broker’s SEBI registration number takes the form INZ followed by nine digits. Our registration number, exchange memberships and member codes are on our registration and disclosures page, and you can verify them against SEBI’s public register and the exchange websites.

Do’s

These are reproduced from the Investor Charter for Stock Brokers prescribed by SEBI.

1. Read all documents and conditions being agreed before signing the account opening form.
2. Receive a copy of KYC, copy of account opening documents and Unique Client Code.
3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
4. Receive all information about brokerage, fees and other charges levied.
5. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
6. If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI) However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting DDPI, carefully examine the scope and implications of powers being granted.
7. 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.
8. Receive funds and securities/ commodities on time, as prescribed by SEBI or exchange from time to time.
9. Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.
10. Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (Monthly or Quarterly).
11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.
12. Retain documents for trading activity as it helps in resolving disputes, if they arise.

Don’ts

1. Do not deal with unregistered stock broker.
2. Do not forget to strike off blanks in your account opening and KYC.
3. Do not submit an incomplete account opening and KYC form.
4. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
5. 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.
6. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
7. Do not opt for digital contracts, if not familiar with computers.
8. Do not share trading password.
9. Do not fall prey to fixed / guaranteed returns schemes.
10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
11. Do not follow herd mentality for investments. Seek expert and professional advice for your investments

Additionally, Investors may refer to Dos and Don'ts issued by MIIs on their respective websites from time to time.

We will never ask you for these

• Your trading or demat account login credentials, passwords or one-time passwords.
• A transfer of funds to any account other than the designated client bank accounts listed on our client funds page, and never to an employee’s account.
• Cash. We are not permitted to accept cash from you.
• Permission to trade in your account without your specific instruction for each trade.

If you receive a message claiming to be from us that asks for any of these, it is not from us. Please report it through our grievance redressal process so we can act on it.

Protection if a broker defaults

If a stock broker is declared a defaulter, eligible client claims may be compensated from the exchange’s Investor Protection Fund. The exchanges publish the eligibility norms, the claim form, the standard operating procedure and the list of defaulter members on their websites. The process is summarised in section 8 of the Investor Charter.