DOs

• Transact only through Stock Exchanges.
• Deal only through SEBI registered intermediaries.
• Complete all the required formalities of opening an account properly (Clientregistration, Client agreement forms etc).
• Ask for and sign “Know Your Client Agreement”.
• Read and properly understand the risks associated with investing in securities /derivatives before undertaking transactions.
• Assess the risk – return profile of the investment as well as the liquidity andsafety aspects before making your investment decision.
• Ask all relevant questions and clear your doubts with your broker before transacting.
• Invest based on sound reasoning after taking into account all publicly availableinformation and on fundamentals.
• Give clear and unambiguous instructions to your broker / sub-broker / depositoryparticipant.
• Be vigilant in your transactions.
• Insist on a contract note for your transaction.
• Verify all details in contract note, immediately on receipt.
• Crosscheck details of your trade with details as available on the exchange website.
• Scrutinize minutely both the transaction and the holding statements that youreceive from your Depository participant.
• Keep copies of all your investment documentation.
• Handle Delivery Instruction Slips (DIS) Book issued by DP’s carefully.
• Insist that the DIS numbers are pre-printed and your account number (client id)be pre stamped.
• Incase you are not transacting frequently make use of the freezing facilitiesprovided for your demat account.
• Pay the margins required to be paid in the time prescribed.
• Deliver the shares in case of sale or pay the money in case of purchase withinthe time prescribed.
• Participate and vote in general meetings either personally or through proxy.ü Be aware of your rights and responsibilities.
• Incase of complaints approach the right authorities for redressal in a timely manner. 

 DON’Ts

• Don’t undertake off-market transactions in securities.
• Don’t deal with unregistered intermediaries.
• Don’t fall prey to promises of unrealistic returns.
• Don’t invest on the basis of hearsay and rumors; verify before investment.
• Don’t forget to take note of risks involved in the investment.
• Don’t be misled by rumours circulating in the market.
• Don’t be influenced into buying into fundamentally unsound companies (pennystocks) based on sudden spurts in trading volumes or prices or non authenticfavorable looking articles / stories.
• Don’t follow the herd or play on momentum – it could turn against you.û Don’t be misled by so called hot tips.
• Don’t try to time the market.
• Don’t hesitate to approach the proper authorities for redressal of your doubts /grievances.
• Don’t leave signed blank Delivery Instruction Slips of your demat account lyingaround carelessly or with anyone.
• Do not sign blank Delivery Instruction Slips(DIS) and keep them with DepositoryParticipant(DP) or broker to save time. Remember your carelessness can beyour peril.

Related posts:

1. DOs and DONTs : Investing in Mutual Funds
2. Delivery Instruction Slip
3. DOs and DONTs : Buyback of Securities