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    Advisory Circular

    Uploaded by

    Deepika Darkhorse Professionals
    This document provides warnings and guidance for investors regarding potential risks when investing through stock brokers. It cautions investors to beware of schemes that offer fixed or guaranteed returns or capital protection. It also advises investors to keep their contact information updated with brokers, regularly verify transaction statements, settle accounts within 90 days for running accounts, and only transfer funds to SEBI-registered stock brokers. Investors are warned not to deal with unregistered intermediaries or accept indicative returns from brokers.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Advisory Circular

    Uploaded by

    Deepika Darkhorse Professionals
    5 views2 pages
    This document provides warnings and guidance for investors regarding potential risks when investing through stock brokers. It cautions investors to beware of schemes that offer fixed or guaranteed returns or capital protection. It also advises investors to keep their contact information updated with brokers, regularly verify transaction statements, settle accounts within 90 days for running accounts, and only transfer funds to SEBI-registered stock brokers. Investors are warned not to deal with unregistered intermediaries or accept indicative returns from brokers.

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    This document provides warnings and guidance for investors regarding potential risks when investing through stock brokers. It cautions investors to beware of schemes that offer fixed or guaranteed returns or capital protection. It also advises investors to keep their contact information updated with brokers, regularly verify transaction statements, settle accounts within 90 days for running accounts, and only transfer funds to SEBI-registered stock brokers. Investors are warned not to deal with unregistered intermediaries or accept indicative returns from brokers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views2 pages

    Advisory Circular

    Uploaded by

    Deepika Darkhorse Professionals
    This document provides warnings and guidance for investors regarding potential risks when investing through stock brokers. It cautions investors to beware of schemes that offer fixed or guaranteed returns or capital protection. It also advises investors to keep their contact information updated with brokers, regularly verify transaction statements, settle accounts within 90 days for running accounts, and only transfer funds to SEBI-registered stock brokers. Investors are warned not to deal with unregistered intermediaries or accept indicative returns from brokers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Attention Investors!

     Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their


    authorized persons or 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. 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. Your stock broker has to return the credit
    balance lying with them, within 3 working days in case you have not done any transaction
    within last 30 calendar days. 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 links:
    NSE; BSE; MCX

     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.

     Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges)

     Caution: Clients/investors are cautioned to abstain from dealing in any schemes of


    unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed
    returns / payments etc.

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