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 & E mail Id with your stock broker/depository participant and receive OTP directly from depository on your E Mail Id and/or mobile number to create pledge. Pay 20% upfront margin on the transaction value to trade in cash market segment. Investor may please refer to the Exchanges FAQs issued vide circular referane NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued time to time in this regard. Check your Securities/MF/Bonds in the consolidated account statement issued by NSDL/CDSL every month.

Advisory KYC

Advisory – KYC Compliance - All investors are requested to take note that 6 KYC attributes i.e. Name, PAN, Address, Mobile Number, Email id and Income Range have been made mandatory. Investors availing custodian services will be additionally required to update the custodian details. The last date to update KYC is on or before March 31, 2022. Thereafter non-compliant trading accounts will be blocked for trading by the Exchange. The non-compliant demat accounts will be frozen for debits by Depository Participant or Depository. On submission of the necessary information to the stockbroker and updation of the same by the stockbroker in the Exchange systems and approval by the Exchange, the blocked trading accounts shall be unblocked by the Exchange on T+1 trading day. The demat account shall be unfreezed once the investor submits the deficient KYC details and the same is captured by the depository participant in the depository system. To ensure smooth settlement of trades, the investors are requested to ensure that both the trading and demat accounts are compliant with respect to the KYC requirement. The investors are hereby requested to comply with the regulatory guidelines issued by Exchanges and Depositories from time to time with regard to KYC compliance and related requirements.

Precaution for Clients dealing in Options

Sharing of trading credentials – login id & passwords including OTPs. 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 with unsolicited tips through WhatsApp, Telegram, YouTube, Facebook, SMS, calls, etc. Trading in “Options” based on recommendations from unauthorized/ unregistered investment advisors and influencers.

Advisory - Investors

• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) - specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.
• 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). 
• Do not keep funds and securities idle with the Stock Broker.  
• Regularly login into your account to verify balances and verify the demat statement received from depositories for correctness.
• Check messages sent by Exchanges on a monthly basis regarding funds and securities balances reported by the trading member and immediately raise a concern if you notice a discrepancy.
• Always keep your contact details viz 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 take up the same with your stock broker and if the Stock Broker does not respond, with the Exchange/Depositories

Attention to the Investors

1. Prevent un-authorized transactions in your account. Update your mobile numbers/email ids with your stock brokers and depository participants. Receive information of your transactions directly from the exchange or depository on your mobile/email at the end of the day. Issued in the interest of investors
2. KYC is a one-time exercise while dealing in securities markets. Once KYC is done through a SEBI-registered intermediary (broker, DP, mutual fund, etc.), you need not undergo the same process again when you approach another intermediary.
3. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in the investor’s account.

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