TRDEZ – Investor’s Attention

Investor’s Attention

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.
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, the 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.
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 links:

NSE: https://www.nseindia.com/invest/about-defaulter-section
BSE: https://www.bseindia.com/static/investors/Claim_against_Defaulter.aspx

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.
Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number are mandatory and you must provide the same to your broker for updation with Exchange. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving 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.”

Rights of investors

Receive a copy of KYC, copy of account opening documents. No minimum balance is required to be maintained in a demat account. No charges are payable for opening demat accounts. If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time. You can open more than one demat account in the same name with single DP/multiple DPs. Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories. Pledge and /or any other interest or encumbrance can be created on demat holdings. Right to give standing instructions regarding the crediting of securities in demat account. Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP. In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines. Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform. Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Responsibilities of Investors

Deal with a SEBI registered DP for opening demat account, KYC and Depository linked activities. Provide complete documents for account opening and KYC. Fill all the required details in Account Opening Form / KYC form in your own handwriting and cancel out the blanks. Read all documents and conditions being agreed before signing the account opening form. Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS. Always mention the details like ISIN, number of securities accurately. Inform any change in information linked to demat account and obtain confirmation of updation in the system. Regularly verify balances and demat statement and reconcile with trades/ transactions. Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks/ securities promising huge profits.