Deal only with SEBI-registered brokers/sub-brokers

Ensure that the broker/sub-broker has a valid SEBI registration certificate

Ensure that the broker/sub-broker is permitted to transact in the market

State clearly to the broker/sub-broker who will be placing orders on your behalf

Enter into an agreement with your broker/sub-broker setting out the terms and conditions clearly

Insist on contract note/ confirmation memo for trades done each day

Ask all relevant questions and clear your doubts with your broker before transacting

Insist on bill for every settlement

Ensure that broker’s name, trade time and number, transaction price and brokerage are shown distinctly on the contract note

Insist on periodical statement of accounts

Issue cheques/drafts in trade name of the broker only

Keep copies of all investment documentation

Handle Delivery Instruction Slips (DIS) Book issued by DPs carefully. Insist that the DIS numbers are pre-printed and your account number (Client ID) is pre stamped

In case you are not transacting frequently, make use of the freezing facility provided for your demat account

Pay the required margins in the prescribed time

Ensure receipt of payment/ deliveries within 48 hours of payout

In case of disputes, file written complaint to the broker/sub-broker, to the stock exchange of which he is a member and to SEBI within a reasonable time

In case of sub-broker disputes, inform the main broker about the dispute within a maximum of 6 months

Familiarise yourself with the rules, regulations and circulars issued by the stock exchanges/SEBI before carrying out any transactions

Don’t deal with unregistered broker/sub-broker

Don’t pay more than the approved brokerage to the intermediary

Don’t undertake deals on behalf of others

Don’t neglect to set out in writing orders for higher value given earlier over the phone

Don’t sign blank delivery instruction slip(s) while meeting security pay-in obligation

Don’t accept unsigned/duplicate contract note/confirmation memo

Don’t accept contract note/confirmation memo signed by any unauthorised person

Don’t delay payment/deliveries of securities to the broker/ sub-broker

Don’t get carried away by luring advertisements

Don’t be led by market rumours or get into shady transactions