Stock Brokers can accept securities as margin from clients only by way of pledge 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.
Members has cautioned and created awareness amongst their clients/investors to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. Further Member has also displayed the messages on their respective websites under a separate banner “Advisory for investors” as per Exchange circular.
The member have created a seperate page on their website for Investor charter wherein the relevant details provided viz Vision, Mission, Services Provided by the member, Grievance Redressal Mechanism of the Member and Exchange along with the logo of trading member.The link to access the Investor charter is available on the home page of the website. Also member has displayed investor charter at the prominent places in the office and provided a copy of Investor Charter as a part of account opening kit to the clients, through e-mails/ letters etc.
Advisory for 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, a 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 a 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 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 Member funds / IPF to the clients of the defaulter member. These norms are available on the Exchange website at the following link:
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 and can be pledged to the broker only by way of a ‘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. The 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 stockbroker. 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 a 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 the 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).
