Before investing check the credentials of the company its management fundamentals and recent announcements made be them and other disclosures made. The main sources of information are the websites of the exchanges and companies, databases of data vendors, business newspapers and magazines.
Adopt trading/investment strategies commensurate with your risk bearing capacity as all investments carry some risk the degree of which varies according to the investment strategy adopted.
Transact noly through SEBI recognized stock exchanges and deal only through SEBI registered brokers/ subbrokers.
Give clear and unambiguous instructions to your broker/ sub broker / DP
Insist on a contract note for each transaction and verify details in the contract note , immediately on receipt. If in doubt crosscheck details of your trade available with the details on the exchange’s website.
Ensure that the broker’s name trade time and number transaction price and brokerage are shown distinctly on the contract note.
Issue cheques/ drafts only in the trade name of the broker.
Deliver the shares/depository slip in case of sale and pay the money in case of purchase within the prescribed time.
Ensure receipt of payment/ deliveries within 48 hours of payout.
Insist on periodical statement of accounts.
Scrutinize both the transations and the holding statements that you receive from your DP.
In case you are not transacting frequently use the freezing facility in your demat account.
In case of disputes with the sub-broker inform the main broker immediately.
Hey This is Heeramb Parrit. Professionally i am a stock broker and right now i decided just shared my knowledge with everyone who loves investing and trading.
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