Key points for Investing in Shares

All stock market investors are required to pay attention to the following to avoid any problem/fraud:

  1. Verify authenticity of brokerage house and broker/agent.
  2. Never sign any blank document or cheque.
  3. Always make payment through cross cheque in the name of the brokerage house/broker.
  4. Keep documentary evidence of the following:
    1. Certified duly signed copy of Account Opening Form
    2. Copy of document evidencing payment made to and received from the brokerage houses/brokers
    3. Daily Trade Confirmations (in writing) received from the brokerage houses/brokers.
    4. Periodical statement of their account and sub-account   statement   (which   can   be obtained  from  CDC  in  case of maintenance of sub¬≠account)
    5. Any communication between the investor and the brokerage houses/brokers
  5. Furthermore, investors must check for the following on trade confirmation slip:
    1. Name and number of securities;
    2. Date on which the order is executed;
    3. Nature of transaction (spot, ready or forward and also whether bought or sold);
    4. Price at which the transaction is executed; and commission charged by the brokerage house/broker.
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