Advisory for 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 or capital protection on your investment, or to enter into any loan agreement with you to pay interest on funds offered by you. In case of default by a member, claims for funds or securities given to the broker under any arrangement/agreement for indicative returns 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 any credit balance lying with them within three working days if you have not done any transaction within the last 30 calendar days. In case of default by a Member, claims 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 account settlement opted for. If you have opted for a running account, please ensure that your broker settles your account at least once every 90 days (or 30 days if you have opted for 30-day settlement). In case a trading member is declared a defaulter, client claims will be subject to norms for eligibility of claims for compensation from the IPF. These norms are available on the Exchange website at: https://www.nseindia.com/invest/about-defaulter-section.

• Brokers are not permitted to accept the transfer of securities as margin. Securities offered as margin/collateral MUST remain in the client's account and can only be pledged to the broker through a 'margin pledge' created in the Depository system. Clients are not permitted to place any securities with the broker, an associate, or an authorized person of the broker for any reason. The broker can take securities belonging to clients only for the settlement of securities sold by the client.

• Always keep your contact details — mobile number and email ID — updated with your stock broker. Email and mobile number are mandatory and must be provided to your broker for updating in Exchange records. Immediately take up the matter with your Stock Broker/Exchange if you are not receiving messages from the Exchange/Depositories regularly.

• Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify them with the contract notes/statements of account received from your broker and report any discrepancy to your broker in writing immediately. If the Stock Broker does not respond, escalate the matter to the Exchange/Depositories promptly.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member. Compare them with the weekly statement of account sent by your broker and immediately raise a concern with the Exchange if you notice any discrepancy.

• Do not transfer funds for the purpose of trading to anyone — including an authorized person or an associate of the broker — other than a SEBI-registered Stock Broker.

• Clients/investors should abstain from dealing in any schemes of unauthorised collective investments/portfolio management, or indicative/guaranteed/fixed returns/payment schemes.