Do's & Don'ts
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- Do's & Don'ts
Do's :
- Deal only with registered intermediaries - check the registration certificate of the intermediary you are dealing with. It allows recourse to regulatory action.
- Read all mandatory documents viz. Rights and Obligations, Risk Disclosure Document, Policy and Procedure document of the stockbroker.
- Be informed about brokerage, commissions, fees, other charges levied by broker
- Read, understand and then sign the voluntary clauses.
- Check for all conditions that have been agreed and accepted by you.
- Ensure to fill all the required details in “Account Opening Form” / Know Your Client Form (KYC) by yourself and receive duly signed copy of your ‘KYC’ documents from Moneylicious Securities Private Limited (MSPL). Always keep your contact details viz Mobile number / Email ID updated with the MSPL. You may take up the matter with MSPL / Exchange if you are not receiving the messages from Exchange / Depositories regularly
- Opt for electronic (e-mail) contract notes/financial statements only if you are computer savvy and have an e-mail account of your own.
- Ensure that pay-out of funds/securities/commodities is received in your account within 1 working day from the date of pay-out
- Make payments only through the banking channel and issue cheque in favour of MSPL
- Trade verification facility is also available on Exchange website which you can use to verify your trades
- Register for online applications viz easiest provided by Depositories for online delivery of securities as an alternative to POA/DDPI.
- Ensure that you receive Contract Notes within 24 hours of your trades and Statement of Account at least once in a quarter / month from MSPL.
- If you have opted for running account, please ensure that the MSPL settles your account regularly and in any case not later than 90 days (or 30 days if you have opted for 30 days settlement).
- Regularly login into your account to verify balances and verify the demat statement received from depositories for correctness. Regularly verify Consolidated Accounts Statement (CAS) received from Depositories and reconcile with your trades / transactions.
- Keep Delivery Instruction Slip (DIS) of your Demat account safely. Do not hand over blank signed DIS slips to any-one
- Check messages sent by Exchanges on a weekly basis regarding funds / securities / commodities balances reported by the MSPL and immediately raise a concern, if you notice a discrepancy.
- If you observe any discrepancies in your account or settlements, immediately take up the same with MSPL in writing within 7 (seven) working days from date of receipt of the statement. If the MSPL does not respond, take up the matter with the Exchange/Depositories.
- If in doubt, revoke any authorization given by you at any time.
- Beware of fixed/guaranteed returns schemes. Brokers or any of their representatives are not authorized to offer fixed/guaranteed returns on your investment or enter into any loan agreement to pay interest on the funds/securities/commodities offered by you.
- Do your own study about the fundamentals of the company whose shares you are buying.
- Attend various Investor Awareness Programs held by SEBI/ Exchanges/ Depositories for awareness of various changes in the markets.
- Gauge your risk profile based on income, cash flow, ability to sustain financial risks before investing in a fund.
- Work out your asset allocation based on your risk profile like investing in equity/ debt / ETFs, etc
- Use investment strategies like Systematic Investment Plans (SIPS) to createinvesting discipline and long-term wealth.
- Understand the Tax implications on investments, consulting tax advisor, if necessary
- Monitor your mutual fund investments keeping in mind your changing financial goals.
- Consult a financial advisor to help you make the right investment decisions
Don'ts :
- Do not share password (internet account) with anyone. It is like sharing your safe key
- Do not transfer Securities to MSPL for the purpose of margin. They remain in your account only and you need to only pledge them to your MSPL through the pledge mechanism.
- Do not transfer funds/securities, for the purposes of trading to anyone other than a MSPL.
- Don't ignore any emails/SMSs received with regards to trades done by you from the Exchange. Verify the same with the Contract notes/Statement of accounts received from MSPL only and report discrepancy, if any, to us in writing immediately and if the MSPL does not respond, with the Exchange/Depositories
- Do not keep funds / securities / commodities idle with the MSPL
- Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks/ Securities promising huge profits.
- Don’t take more risk than you can deal with, always analyse your risk profile before investment.
- Don’t invest all your money in one asset class or a particular type of fund or sector.
- Don’t invest without guidance if you are not conversant with Mutual Fund investing.
- Don’t be in a haste to invest without reading and understanding the contents of the scheme related documents.
- Don’t handover unfilled or incomplete applications
- Don’t forget to save, always keep surplus funds aside for emergencies.