Home | Advisory For Investors
"Attention Investors!
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 authorized to enter into any loan agreement with
you to pay interest on the funds offered by you. Please note that 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.
Do not keep funds idle with the Stock Broker. Please note that your stock broker has to
return the credit balance lying with them, within three working days in case you have not done any
transaction within last 30 calendar days. Please note that 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 Exchange as per the approved norms.
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 than once
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 would be 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
Brokers are not permitted to accept transfer of securities as margin. Securities offered as
margin/ collateral MUST remain in 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.
Always keep your contact details viz. Mobile number/Email ID updated with the stock
broker. 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.
Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify
the same 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 forthwith.
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.
Please do not transfer funds, for the purposes of trading to anyone, including an authorized
person or an associate of the broker, other than a SEBI registered Stock broker."
