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 create pledge
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
circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 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
Advisory for investors
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.
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.
