Investor Awareness

Circulars

Risk disclosures on Derivatives trading

• 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

• On an average, loss makers registered net trading loss close to ₹ 50,000.

• Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.

• Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Source:
SEBI study dated January 25, 2023 on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment" , wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BSE Investor Education
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

• 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 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.

• Creating investor awareness and safeguarding client's assets- NSE circular

• NSDL e-Voting

• CDSL e-Voting Link

Contact details : To prevent unauthorized transactions in your account, kindly update your mobile numbers/email IDs with your stock broker. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day.

KYC Notification : KYC is 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

Advisory against Tips : Investors are advised not to blindly follow the unfounded rumours, tips given in social networks, SMS, WhatsApp, Blogs etc. and invest only after conducting appropriate analysis of respective companies. Beware of fraudster entities operating throughout India and sending bulk messages on the pretext of providing investment tips and luring investors to invest with them in their bogus firms by promising hefty profits.

IPO Investment : 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 investor's account.

Client Registration Documents : Client Registration Documents are now available in Vernacular Language for NSE for BSE for MCX For NCDEX.

Filing complaints on SCORES - Easy & quick: Online Resolution of Disputes (ODR) (https://smartodr.in/intermediary/login)

1. Register on SCORES portal

2. Mandatory details for filing complaints on SCORES are Name, PAN, Address, Mobile Number, E-mail ID.

3. Benefits:

   • Effective communication

   • Speedy redressal of the grievances