Do’s
- Trade only through registered members of the Exchange. Check with the exchange to see whether the member is registered with the Exchange
- Insist on filling up a standard ‘KNOW YOUR CLIENT (KYC)’ form and on getting a client code.
- Insist on reading and signing standard ‘Risk Disclosure Agreement’.
- While trading through an authorized person ensure that a duly signed contract note has been issued by the member or its authorized persons for every executed trade, highlighting the details of the trade along with your unique client code.
- Scrutinize minutely both the transaction as well as the holding statements that you receive from your Depository Participant.
- Read, Understand and be updated about the guidelines and circulars of the exchange & SEBI.
- Be aware of your risk taking ability and fix stop-loss limits. Liquidate your positions at such levels to reduce further losses, if any.
- Collect/ Pay Mark to Market margins on your futures positions on a daily basis from/to your member.
- Since the investment is based on various types of margins, be aware of the risks associated with your positions in the market and margin calls made from time to time.
- Go through all Rules, Bye Laws, Regulations Circulars and directives issued by Exchanges & SEBI.
- Apply your own prudent judgement for investments and take informed decisions.
Dont’s
- Do not start trading before reading and understanding the Risk Disclosure Agreement and entering into the prescribed agreement with the member.
- Do not deal with unregistered intermediaries even if their charges are lower and /or margins are lesser.
- Do not get carried away by luring advertisements, rumours, hot tips, promise of unrealistic returns etc.
- Do not forget to take note of risks involved in the investments.
- Do not sign blank Delivery Instruction Slips (DIS) while furnishing securities deposits and/or keep them with Depository Participants (DP) or broker to save time.
- Do not give or enter into cash transactions.
- Do not trade on any product without knowing the risk and rewards associated with it.
