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investor do's & dont's

pre-account opening

DO’s

  • Familiarize yourself with the rules, regulations, byelaws and circulars issued by Stock Exchanges/ SEBI before entering into and/or carrying out any transaction.
  • Transact only through Stock Exchanges.
  • Please carry out due-diligence before registering as client with any Broker.
  • Clear all your doubts by raising your queries with the Relationship Manager prior to opening an account.

DONT's

  • Do not start trading until you have read and understood the Risk Disclosure Document and other KYC document

account opening

DO’s

  • Read and understand the Rights & Obligations Document for trading on exchanges (including additional rights & obligations in case of internet / wireless technology based trading), Uniform Risk Disclosure Documents (for all segments / exchanges), Guidance Note detailing Do’s and Don’ts for trading on exchanges as specified by SEBI, and policy and procedures of BASAN Services Limited.
  • Enter accurate and complete details in the form, fill up all fields. Do not leave any spaces blank.
  • All information provided should be factually correct and accurate since this will form the basis of your relationship with Basan Equity Broking Limited.
  • Please read and understand every annexure in the Registration kit very carefully before signing.
  • Please provide accurate Email ID,Mobile No., DP ID and Bank account number.
  • Email-id and mobile no. provided by you should belong to you.
  • The correspondence address should always be updated.
  • Please submit your Permanent Account Number (PAN)
  • Please understand the utility of maintaining a running account before signing the authorization for the same. Maintaining a Running Account with us is not compulsory.
  • Please provide the authorization letter if any family member/any other person is going to place the order on behalf of the client.

DONT's

  • Do not sign the KYC form and other documents without clearing your doubts in respect thereof.
  • Do not fill in wrong or incomplete details. Do not overwrite, cancel and misspell the details.
  • Do not provide information which is factually incorrect as the same is illegal.

pre-trading

DO’s

  • Adopt trading / investment strategies commensurate with your risk bearing capacity, as all investments carry risk, the degree of which varies according to the investment strategy adopted.
  • Make investments based on your sound reasoning, after taking into account all publicly available information and information made available.
  • Check the veracity of the information available.
  • Access the websites of Companies and Regulators for information.
  • Keep copies of the KYC form and your trading account related documents.

DONT's

  • Do not trade in any product without knowing and/or understanding the associated risks and rewards.
  • Do not be influenced by information which is not originating from an appropriate source.
  • Do not rely on any implicit / explicit promise made by the issuer or any third party on returns.
  • Do not be influenced into buying fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non-authentic favorable looking articles/stories.
  • Do not match / synchronize trades with any other person for any thinly traded shares.
  • Do not be misled by rumors circulating in the market.
  • Do not indulge in any trading activity which results in disturbance of market equilibrium in any manner including manipulation of price of any scrips.
  • Do not follow the herd or play on momentum – it could turn against you.
  • Do not be misled by so called hot tips.
  • Do not pay in cash or do not issue a cheque in the name of any employee of the Basan Equity Broking Limited or any other person in respect of the transactions.
  • Do not get carried away by luring advertisements, if any.

trading

DO’s

  • Call on the landline numbers of your local branch and give clear and unambiguous instructions while placing orders over the phone. In case you visit the branch office, kindly give your orders in writing.
  • Be aware of the risk associated with your Cash Market and Futures & Options positions in the market and margin calls on them. In case of inadequate margin or nonpayment of margin in your account, your positions will be squared off by the Risk Management Team.
  • Change your password every fortnight.
  • Please bear in mind that while it is our endeavor to inform you in case of a margin call, it is your responsibility to maintain margins. Basan Equity Broking Limited will square up outstanding position in case of shortfall in margin and delay in payments.
  • Maintain secrecy of your password in case of Internet trading, since you will be solely responsible for all transactions effected from its usage.
  • Please contact your relationship manager in case of any issue.

DONT's

  • Do not give instructions which are not clear. They should be given verbally over recorded phone lines or in writing.
  • Do not reveal your password to any other person.
  • Do not forget to take note of risks involved in the investment. Do not believe if Basan Equity Broking Limited representative tells you that margins are not required or payments on time need not be made.

post-trading

DO’s

  • Insist and ensure that for every executed trade you receive duly signed contract note from Basan Equity Broking Ltd., highlighting the details of the trade, trade time and number, transaction price, brokerage along with your unique client-id, broker’s name.
  • Verify all details in contract notes, immediately on receipt.
  • Check your email account mentioned in the ‘Know Your Client’ form daily. All your account related information including trade confirmation and margin calls will be emailed to you.
  • Insist on periodical statement of accounts for your scrutiny.
  • Pay the margins within the prescribed time. Collect/pay, your mark to market margins, on your positions, on a daily basis, from/to Basan Equity Broking Ltd.
  • Ensure receipt of payment/deliveries within one working day of payout.
  • Deliver the shares in case of sale or pay the money in case of purchase before the pay-in day.
  • Make payments, enhance margins through cheques made out in favour of “Basan Equity Broking Limited” only
  • Issue cheques / drafts in the trade name of broker only i.e. Basan Equity Broking Limited.

DONT's

  • Do not believe if Basan Equity Broking Limited representative tells you that margins are not required or payments on time need not be made.
  • Do not hesitate to approach Basan Equity Broking Limited helpline. Helpline can be contacted at : HelpLine number :(040) 64645000 Email id : helpdesk@basanonline.com
  • Do not accept unsigned contract notes or signed by an unauthorized person
  • Do not pay more than the agreed brokerage to Basan Equity Broking Limited.

depositories

DO’s

  • Scrutinize thoroughly both the transaction and holding statement that you receive.
  • Handle Delivery Instruction Slips (DIS) Book issued to you carefully.
  • Insist that the DIS numbers are pre-printed and your account number (client id) be pre-stamped.
  • While sending securities for Demat, record the distinctive numbers of the securities sent.
  • Check the Demat performance of the issuer company with your DP before deciding to send certificates for Demat.
  • Always mention the details like ISIN, number of securities accurately. If in doubt, contact DP or your broker.
  • Authorize any corrections, over-writing or cancellations on the instruction slips by signing against the same.
  • Ensure that all joint holders of the Demat account sign the slip.
  • If there is space for multiple instructions and it is not used fully, please strike out the blank space for furnishing securities details.
  • Please understand the utility of executing Power of Attorney before signing the same.
  • In case you are not transacting frequently make use of the freezing facilities provided for your Demat account.

DONT's

  • Do not Issue Demat delivery instruction slip from any other family members/friends accounts. Issue the DIS only from your own Demat account,
  • Do not sign blank Delivery instruction slip(s) while meeting security paying obligation.
  • Do not over-write, cancel, misspell and change the name and quantity of securities.

while investing in mutual fund

DO’s

  • Pick funds that have a proven track record and a manager who has been around for more than five years.
  • Pick funds that meet your investment objectives and risk tolerance.
  • Invest in four or five funds for diversification. As they say, don’t put all your eggs in one basket.
  • Keep all of your fund statements for your tax records.

DONT's

  • Don’t invest in a fund if you haven’t reviewed its prospectus and performance history
  • Don’t panic. The worst thing you can do is sell when the market’s dipping, and buy when it’s high.
  • Don’t buy aggressive-growth funds if you’re averse to risk.

other important aspects:

  • Mutual Funds investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved.
  • The NAV of the Units issued under the Mutual Fund Scheme can go up or down depending on the factors and forces affecting the capital markets.
  • The name of the Schemes do not in any manner indicates either the quality of the Scheme, its future prospects or returns.
  • Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme.
  • Investors should read the offer document carefully before investing in any mutual fund scheme.

ATTENTION INVESTORS:

"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."

"Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSC/INSP/27436, BSE - 20140901 -21"

"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."

BASAN EQUITY BROKING LIMITED : Corporate Identity Number : U67120TG2007PLC056313. Click here for Registration no's

BASAN COMMODITY LIMITED : Corporate Identity Number : U67120TG2008PLC057632. Click here for Registration no's

BASAN FINANCIAL SERVICES LIMITED : Corporate Identity Number : U65990TG2010PLC071022. Click here for Registration no's

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