In view of the recent developments in the securities market, NSE advises to take following precautions :
- Ensure that pay-out of funds or securities is received in your account within 1 working day from the date of pay-out.
- Be careful while executing POA (Power of Attorney).
- POA specify all the rights that the stock broker can exercise and period for which POA is valid.
- It may be noted that POA is not a mandatory requirement of SEBI.
- Register for online applications via Speed-e, provided by Depositories for online delivery of securities as an alternative to POA.
- SPEED-e is a common Internet Infrastructure that enables the Depository Participants (DP) to provide depository services to their clients.
- Demat account holders (including Clearing Members) subscribing to SPEES-e facility can submit delivery instructions to their DP’s through website https://eservices.nsdl.com, instead of submitting delivery instruction in paper form to their DP.
- Ensure that you receive Contract Notes within 24 hours of your trades and Statement of Account at least once in a quarter from your Stock Broker.
- Please note that securities provided by you towards margin are not permitted to be pledged by your Stock Broker for raising funds.
- If you have opted for running account, please ensure that the stock broker settles your account regularly and in any case not later than 90 days (or 30 days if you have opted for 30 days settlement).
- Running account authorisation is required by broker to hold funds in investor’s trading account so that broker can hold funds for a set amount of time, say, a month or a quarter. If investor doesn’t sign this document then investor have to pay entire amount on purchase and will be paid entire amount on sale.
- Do not keep funds and securities idle with the Stock Broker.
- Regularly login into your account to verify balances and verify the de-mat statement received from depositories.
- The users of SPEED-e can also check latest balances and transactions in their demat accounts through a facility called Internet-based Demat Account Statement (IDEAS) and monitor the status of execution of instructions.
- Check messages sent by Exchanges on a monthly basis in respect of funds and securities balances reported by the trading member and immediately raise a concern if you notice a discrepancy.
- Always keep your contact details i.e. Mobile number / Email ID updated with the stock broker. You may take up the matter with Stock Broker / Exchange if you are not receiving the messages from Exchange / Depositories regularly.
- If you observe any discrepancies in your account or settlements, immediately contact your stock broker and if the Stock Broker does not respond, contact Exchange/Depositories.