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.