Investor Awareness regarding the revised guidelines on margin collection.
- Stock Brokers can accept securities as margin from clients only by way of pledge in the
depository system w.e.f. September 1, 2020.
- Update your mobile number & email Id with your stock broker/depository participant
and receive OTP directly from depository on your email id and/or mobile number to
- Pay 20% upfront margin of the transaction value to trade in cash market segment.
- Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs)
issued vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August
31, 2020 and other guidelines issued from time to time in this regard.
- Check your Securities /MF/ Bonds in the consolidated account statement issued by
NSDL/CDSL every month. ……Issued in the interest of Investors
Investor awareness and safeguarding clients’ asset
- Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized
persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/
capital protection on your investment or authorized to enter into any loan agreement with you to pay
interest on the funds offered by you. Please note that in case of default of a member claim for funds
or securities given to the broker under any arrangement/ agreement of indicative return will not be
accepted by the relevant Committee of the Exchange as per the approved norms.
- Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the
credit balance lying with them, within three working days in case you have not done any transaction
within last 30 calendar days. Please note that in case of default of a Member, claim for funds and
securities, without any transaction on the exchange will not be accepted by the relevant Committee
of the Exchange as per the approved norms.
- Check the frequency of accounts settlement opted for. If you have opted for running account, please
ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30
days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter,
the claims of clients against such defaulter member would be subject to norms for eligibility of claims
for compensation from IPF to the clients of the defaulter member. These norms are available on
Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section.
National Stock Exchange of India Limited
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- Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/
collateral MUST remain in the account of the client and can be pledged to the broker only by way of
‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities
with the broker or associate of the broker or authorized person of the broker for any reason. Broker
can take securities belonging to clients only for settlement of securities sold by the client.
- Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email
and mobile number is mandatory and you must provide the same to your broker for updation in
Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are
not receiving the messages from Exchange/Depositories regularly.
- Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same
with the Contract notes/Statement of accounts received from your broker and report discrepancy, if
any, to your broker in writing immediately and if the Stock Broker does not respond, please take this
up with the Exchange/Depositories forthwith.
- Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported
by the trading member, compare it with the weekly statement of account sent by broker and
immediately raise a concern to the exchange if you notice a discrepancy.
- Please do not transfer funds, for the purposes of trading to anyone, including an authorized person
or an associate of the broker, other than a SEBI registered Stock broker.”
Precautions for clients dealing in Options
This has reference to NSE circular ref no: NSE/INSP/52900 dated July 6, 2022. It is hereby brought to the attention of clients that the following should be avoided w.r.t dealing in Options trading
- Sharing of trading credentials – login id & passwords including OTP’s.
- Trading in leveraged products like options without proper understanding, which could lead to losses
- Writing/ selling options or trading in option strategies based on tips, without basic knowledge & understanding of the product and its risks
- Dealing in unsolicited tips through WhatsApp, Telegram, YouTube, Facebook, SMS, calls, etc.
- Trading in “Options” based on recommendations from unauthorised/unregistered investment advisors and influencers.