Advisory to 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 the 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 an 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).
• Brokers are not permitted to accept the transfer of securities as a margin. Securities offered as margin/ collateral MUST remain in the account of the client. 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. A broker can take securities belonging to clients only for the settlement of securities sold by the client.
• Stock Brokers can be pledged to the broker only by way of a ‘margin pledge’ created in the Depository system. w.e.f. September 01, 2020. Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
• Always keep your contact details viz. Mobile number/Email ID updated with the stockbroker.
  Email and mobile number are mandatory and you must provide the same to your broker for
  updating 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
  the 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 Stockbroker.”
• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).
• In case of the declaration of the trading member as a defaulter, the claims of clients against such a 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 the Exchange website at the following link:NSE About Defaulter Section.
  BSE Claim Against Defaulter

• It has been observed that there are various unsolicited messages being circulated in the market whereby some unscrupulous persons / entities operating through Indian and International mobile numbers, through impersonation on social media platforms like WhatsApp Groups, Telegram Channels, Facebook, Instagram Channels, etc. are falsely claiming to be associated with reputed financial institutions, showcasing fake certificates purportedly issued by SEBI/ Exchanges. In context of the above, investors are advised to be aware about such suspicious entities / persons and abstain from dealing in any schemes of unauthorised collective investments / portfolio management, indicative/ guaranteed /fixed returns / payments. Investors are guided to verify the authentication of offer by visiting the official website or tagging official social media handles or by calling customer care no. / email / phone no. Investors are advised to not to participate / subscribe to any such product / scheme being offered. For clients’ information & awareness in context of the Unauthorised Market Practices, the exchanges have issued the press releases on their websites which are as follows:

  NSE:NSE Advisory for Investors

  BSE:BSE Media Releases