Importance For Investor / Traders in Stock Broker/Exchange on Trades

 Dear Investor,

With reference to SEBI circular ref no. CIR/MIRSD/15/2011dated August 02, 2011, a SMS and email facility has been provided for ease and convenience of verification of trades.

The data is being provided to the clients on an "as is" and "where-is" basis, without any warranty. The Exchange shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Exchange to send the data. In no event shall the Exchange be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Exchange through this facility.

Dos and Don’ts for Retail Investors

1. Deal only with registered intermediaries - check the registration certificate of the intermediary you are dealing with. It allows recourse to regulatory action.
2. 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 claims for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the Exchange in case of default by your broker.
3. Please ensure that you fill all the required details in ‘KYC’ document by yourself and receive duly signed copy of your ‘KYC’ documents from your broker. Check for all conditions that have been agreed and accepted by you.
4. 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.
5. Opt for electronic (e-mail) contract notes/financial statements only if you are computer savvy and have your own e-mail account.
6. 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.
7. Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and sends statement of accounts regularly and in any case not later than once in 90 days (or 30 days if you have opted for 30 days settlement). Please note that claims for a period longer than 90 days will not be accepted by the Exchange in case of default by your broker.
8. Regularly verify Consolidated Accounts Statement (CAS) received from Depositories and reconcile with your trades / transactions.
9. Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out. Ensure that you receive Contract Notes within 24 hours of your trades.
10. Trade verification facility is also available on NSE website which you can use to verify your trades executed.
11. Do not keep funds idle with the Stock Broker. Please note that claims for funds, without transactions on the exchange will not be accepted by the Exchange in case of default by your broker.
12. 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. 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.
13. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks/ Securities promising huge profits.
14. Be careful while executing the PoA (Power of Attorney) - specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
15. Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member and immediately raise a concern to the exchange if you notice a discrepancy.
16. Do not share password (internet account) with anyone. It is like sharing your safe key.
17. 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

Information to investors:

Exchange has introduced trading in Rights Entitlement w.e.f. May 20, 2020. The trades executed, if any, for Rights Entitlement in Capital Market shall form part of the attached file. Rights Entitlement should not be mistaken for ordinary shares and unless Rights Entitlement are exercised they will lose value and no rights (shares) will be available to the investor. The buyer of the Rights Entitlement is required to subscribe for the same before the Issue Closing Date, else the same will lapse and no shares will be allotted.

In case you need any clarification, please feel free to call on our toll free number 1800 266 0050 (select option 5 - UCI & Trade Alerts). You can also email us at uci@nse.co.in, quoting your PAN, Mobile no. and your query.

Thanks and Regards,

National Stock Exchange of India Limited