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Safeguards for Investors

Discuss your grievances with brokers, financial intermediaries, banks, etc

Safeguards for Investors

Postby investordost » Fri May 23, 2008 6:10 pm

The following are some of the safe-guards that need to be adhered to by the Investors’ before trading in the securities market:

  1. Deal with only SEBI registered Broker / Sub-broker after due diligence. Details of List of Brokers’ can be procured from the Member’s List published by the Exchange and from its website: http://www.bseindia.com

  2. Fill in a Client registration form with Broker / Sub – broker.

  3. Enter into Broker / Sub–broker – Client Agreement. This agreement is mandatory for all Investors for registering as a client of a BSE Trading Member. The Client should ensure the following before entering into an agreement:
  4. Carefully read and understand the terms and conditions of the agreement, before executing the same on a valid stamp paper of the requisite value.
  5. Agreement to be signed on all the pages by the Client and the Member or their representative who has the authority to sign the agreement. Agreement has also to be signed by the witnesses by giving their name and address.

  6. Specify to the Broker / Sub- broker, Exchange through which your trade is to be executed and maintain separate account per Exchange.

  7. Obtain a valid Contract Note (from Broker) / Confirmation Memo (from Sub–broker) within 24 hours of the execution of the trade.

Ensure that the Contract Note / Confirmation Memo contains:

  1. SEBI registration number of the Member/ Sub-broker.

  2. Details of trade such as, Order no, trade no., trade time, quantity, price, brokerage, settlement number, details of other levies.

  3. The trade price should be shown separately from the brokerage charged.

  4. The brokerage and service tax is indicated separately in the contract note.

  5. Signature of authorized representative.
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Safeguards for Investors


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