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How to play > Rules |
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| INVESTOR ALERT |
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BEFORE YOU INVEST
YOUR MONEY,
INVEST SOME TIME! |
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Dear Investor
The trading activity in the stock markets have increased and more investors are investing in the markets. However, it is important to note that there are risks associated with all markets and investors should be vigilant and alert in their investment activity.
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Here are some useful pointers to bear in mind before you invest in the markets:
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Make sure your broker is registered with the SEBI and the Exchanges and do not deal with unregistered intermediaries. |
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All investments carry risk of some kind. Investors should always know the risk that they are taking and invest to match their risk tolerance. |
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Do not be misled by market rumours, luring advertisement or 'hot tips' of the day. |
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Take informed decisions by studying the fundamentals of the company. Find out the business the company is into, the future prospects, quality of management, past track record etc. Sources of knowing about a company are through annual reports, economic magazines, databases available with vendors. |
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If anyone, including your financial advisor, advises you to invest in a company, be cautious. Spend some time checking out about the company before investing. |
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Do not be attracted by announcements of excellent results / news reports, about a company. Do your own research before investing in any stock. |
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Do not be attracted to stocks based on what an internet website, research reports, advisories promote, unless you have done adequate study of the company. |
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Investing in very low priced stocks or what are known as penny stocks do not guarantee high returns. |
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Be cautious about stocks which show a sudden spurt in price or trading activity. |
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Any advice or tip that claims that there are huge returns expected, especially for acting quickly, may be risky and may lead to losing some, most, or all of your money. |
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| GET FACTUAL |
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Dear Investor
Over the years, National Stock Exchange (NSE) has introduced on-line trading in securities, settlement guarantee, internet based trading, derivatives etc. for the benefit of investors. Drawing from our experience in helping protect investor interest, we would like to share with you a set of practices that you should follow. These guidelines will go a long way towards reducing your grievances and providing cover under the Investor Protection Fund extended by NSE for transactions executed on the Exchange.
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Safety Guidelines for Trading
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Buy and sell securities only through SEBI registered intermediaries. |
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Ensure that the intermediary (broker / sub-broker) has a valid SEBI registration certificate. |
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Ensure that you give all your details in the “Know Your Client” form. |
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Ensure that you read carefully and understand the contents of the “Risk Disclosure Document” and then acknowledge it. |
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Insist on a contract note issued by your broker only, for trades done each day. |
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Ensure that you receive the contract note from your broker within 24 hrs. of the transaction. |
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Ensure that the contract note contains details such as the broker’s name, trade time and number, transaction price, brokerage, service tax, securities transaction tax etc. and is signed by the Authorised Signatory of the broker. |
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To cross check genuineness of the transactions, log in to the NSE website (www.nseindia.com) and go to the trade verification facility extended by NSE at www.nseindia.com/content/equities/eq_trdverify.htm. Fill in the relevant information. The facility will confirm all genuine transactions and will be available for a period of 5 days from the date of trade. |
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Issue account payee cheques / demand drafts in the name of your broker only, as it appears on the contract note / SEBI registration certificate of the broker. |
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While delivering shares to your broker to meet your obligations, ensure that the delivery instructions are made only to the designated account of your broker only. Insist on periodical statement of accounts of funds and securities from your broker. It is important that you cross check and reconcile your accounts promptly and in case of any discrepancies bring it to the attention of your broker immediately. |
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Please ensure that you receive payments / deliveries from your broker, for the transactions entered by you, within one working day of the payout date. |
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Similarly, the Demat delivery instruction slip should be from your own Demat account, not from any other family members’ / friends’ accounts. |
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Do not sign blank delivery instruction slip(s) while meeting security payin obligation. |
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Don’t accept unsigned/duplicate contract note. |
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Don’t accept contract note signed by any unauthorised person. |
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Don’t delay payment /delivery of securities to broker. |
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In the event of any discrepancies/disputes, please bring them to the notice of the broker immediately in writing (acknowledged by the broker) and ensure their prompt rectification. |
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In case of sub-broker disputes, inform the main broker in writing about the dispute at the earliest and in any case not later than 6 months. |
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If your broker / sub-broker does not resolve your complaints within a reasonable period (say within 15 days), please bring it to the attention of the ‘Investor Grievances Cell’ of the NSE. You can log on to the NSE website (www.nseindia.com) at URL : www.nseindia.com/content/assist/asst_invcentre.htm to get the format of the complaint and the modalities of filing it with NSE. |
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While lodging a complaint with the ‘Investor Grievances Cell’ of the NSE, it is very important that you submit copies of all relevant documents like contract notes, proof of payments / delivery of shares etc. alongwith the complaint. Remember, in the absence of sufficient documents, resolution of complaints becomes difficult. |
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Familiarise yourself with the rules, regulations and circulars issued by stock exchanges/SEBI before carrying out any transaction. |
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Don’t get carried away by luring advertisements, market rumours or get into shady transactions. |
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Recognising the importance of investors’ inputs with respect to any possible undesirable trading practices in the securities market, the Exchange has provided a toll free telephone facility where investors can get their inputs recorded in either English or Hindi. The Exchange will ensure complete secrecy to the investors.”
Toll Free Telephone Number: 1800 22 0051
These guidelines are for your benefit.
Act on it.
NATIONAL STOCK EXCHANGE OF INDIA LIMITED
“Exchange Plaza”, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051
Tel : 022-26598100 / 66418100,
Fax : 022-26598120, Email : cc_nse.co.in
Website : www.nseindia.com
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| SOCH KAR SAMAJ KAR INVEST KAR |
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The heightened activity in the stock markets over the last few years has seen a significant rise in the investing population. A lot of investors face issues whilst trading in the market. One such important issue is the possibility of unauthorized trading in the account of the investor.
This is an initiative by NSE to create awareness about steps that investors should take to prevent unauthorized transactions in their accounts.
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Protecting your account from unauthorized trades
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I. Pre Trading
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Account Opening
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Complete the Know Your Client (KYC) Form, read through Member Client Agreement (MCA), Risk Disclosure Document (RDD) and execute them. |
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In case you are dealing through a sub-broker, you need to execute a Tripartite Agreement i.e. an agreement between Investor-Sub-broker-Trading Member. |
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Please provide proof of your identity, proof of your address and also a copy of the Permanent Account Number (PAN) card. |
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Get a Unique Client Code allotted by the Trading Member to you. |
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Before handing over the documents to Trading Member or his authorized representative retain a copy of all documents for your future reference. |
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Areas to watch out………
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Choose NSE as exchange of your choice. Strike off the name of the exchange on which you do not wish to trade. |
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Choose the market segment in which you wish to trade i.e. Capital Market (CM) Segment and / or Futures & Options (F&O) Segment of the Exchange without any compulsions. Strike off the segment you do not wish to trade in. |
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Check and clearly mark your option to receive order confirmations, contract notes and funds and securities statements in digital or physical form. |
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If you choose digital form, ensure that |
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i. The conditions for receiving digitally signed documents are understood |
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ii. The e-mail id regularly used by you is provided |
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iii The e-mail id creation is not left to the discretion of others like Relationship Manager, Dealer, etc. |
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iv. The Trading Member acknowledges your e-mail id |
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If you choose physical form, ensure that you confirm |
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i. Correct address to which you would like to receive the contract notes and other statements. |
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ii. Strike off e-mail id column and clearly write that “You do not wish to receive documents in digital form”. |
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If you are registering for On-line / Internet trading please be sure that you have |
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i. Working knowledge of computers. |
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ii. Complete kit on familiarisation of the product offered by the Trading Member. |
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iii. Verified version of software, confirmed installation and received hands-on training from the Trading Member, before you start trading. |
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iv. Changed password issued in the welcome letter immediately on logging into your account. Design your password as per the prescribed guidelines only. |
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v. Not shared your password and user id with anybody. |
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vi. Understood the alternative methods of placing orders in case of network or other associated problems. |
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vii. Checked for system confirmation after placing the orders and for trades executed. |
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| 5. |
Apart from the mandatory clauses in the agreement stipulated by NSE, there could be voluntary conditions that are agreed by you and the Trading Member. Please understand the implications of these voluntary conditions before agreeing for the same. Some of the illustrative voluntary clauses/documents agreed/executed between Trading Member and Investor which require careful consideration by investor are
| Running account: | Where the Investor agrees to receive funds and securities as and when he requests rather than receiving the same within 24 hours of pay-out by Exchange. |
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| Group Account: | Where investor authorises the Trading Member to adjust debit/credit balances with that of his/her family members. |
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| Power of Attorney: | Where the Trading Member is authorised to operate the Depository Account of Investor for settlement obligations to/from Exchange. |
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| Brokerages and Charges: | Where the Trading Member and the Investor agree upon the charges to be levied for the services rendered by the Trading Member. |
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II. Trading
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1. Specify your name and client code before placing orders. |
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2. Be specific and clear in terms like security details, quantity and price. |
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3. Do not give blanket permission to place orders on your behalf. |
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4. Make sure that orders given by you are entered in your Unique Client Code (UCC) that has been allotted to you. |
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5. If you are an online Investor, change your password at periodic intervals. |
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III. Post Trading
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1. Make sure that you receive contract notes for all your trades from the Trading Member within the stipulated time of 24 hours from the execution of trade. |
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2. In case you have opted for digital contract notes, please verify your e-mail account on a daily basis so that all transactions in your account come to your knowledge |
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3. Review the transaction in your beneficiary owner’s (demat) account regularly. Ensure that securities movement in your demat account have been for valid transactions that have been executed on your behalf. |
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4. Give and receive all funds/securities to and from Trading Member’s account only. |
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5. Make payments only by way of account payee cheque/demand draft/pay order in favour of trading member. |
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6. Make sure that you receive quarterly statement of funds and securities from your Trading Member. Review the statements for accuracy. |
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Temporary suspension of trading activities or closing of account
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1. In case you decide to stop trading for a specific period (in case you are travelling / under going medical treatment, etc.) intimate the Trading Member in writing and take an acknowledgement for the same. |
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2. In case you decide to close your trading account, ensure that you have completed the formalities and received a closure letter from the Trading Member. |
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Remember to …….
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1. Verify your trades on www.nseindia.com on a regular basis. NSE website provides 5 days trade data |
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2. Check transactions in the contract notes or the quarterly statements of funds and securities. If you notice that any transaction is not as per your instructions, raise the issue with the Compliance Officer of the concerned Trading Member in writing within 10 days from the date of transaction |
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3. Receive response / resolution of your complaint within 15 days from the Trading Member, failing which lodge your complaint with the Investor Services Cell of the Exchange |
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4. Exercise caution while accepting the offer to recover losses by placing further trades into your account as the same may result in indirectly giving consent to the past unauthorized trades. |
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| List of Investor Services Centres: |
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MUMBAI:
National
Stock Exchange of India Ltd.
‘Exchange
Plaza’, C-1, Block G,
Bandra-Kurla Complex, Bandra
(E),
Mumbai
– 400 051
Tel.
No.: 26598190
Fax
No: 26598191
e-mail
address: ignse@nse.co.in
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DELHI:
National Stock Exchange of India Ltd.
4th Floor, Jeevan Vihar Building,
Parliament Street,
New Delhi-110001.
Tel
No: (011) 23344313 to 23344327
Fax No: (011) 2336 6658
email
: nseiscdel@nse.co.in
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KOLKATA:
National
Stock Exchange of India Ltd.
1st
Floor, Park View Apartments
99,
Rash Behari Avenue,
Kolkata – 700 029.
Tel No : (033) 24631802-1805,
24631809-1812
Fax No : (033) 24631791, 24631806
e-mail
address: nseisckol@nse.co.in
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CHENNAI:
National
Stock Exchange of India Ltd.
7th
Floor, Arihant Nitco Park,
90, Dr. Radhakrishnan Salai
Mylapore
Chennai - 600 004
Tel No : (044) 2847 5100 / 2847 3670
Fax No : (044) 2847 3633
e-mail
address: nseiscchen@nse.co.in
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HYDERABAD:
National
Stock Exchange of India Ltd.
H
No.3-6-322
Mahavir House, IInd Floor
Chamber no.203 & 204
Basheerbagh
Hyderabad : 500029
Tel No: (040) 23227084
(040) 23227085
Fax No: (040) 23227086
e-mail
address: nseischyd@nse.co.in
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AHMEDABAD:
National
Stock Exchange of India Ltd.
406
Sakar II
Near Ellis Bridge
Ahmedabad - 380 006
Tel No : (079) 2658 0212/ 2658 0213
Fax No : (079) 2657 6123
e-mail
address: nseiscahm@nse.co.in
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Visit us at www.nseindia.com
Issued in the interest of Investors by
NATIONAL STOCK EXCHANGE OF INDIA LIMITED
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