It has been often observed that the investors do not exercise due care and diligence while making investment decisions or for that matter in their dealings with stock brokers. These practices generally lead to disputes and investors find themselves at a greater disadvantage. Following guidelines are given for the sole purpose of safeguarding the interest of the investor:

All purchase and sale orders are in writing and a proper record is maintained.

As the nature of business is such that it would not be always possible for the investor to give instruction (Sale/Purchase) in writing, orders over the telephone would be accepted by the broker with the provision that in case of any misunderstanding in the verbal order, investor would accept the order executed as per broker's understanding. Therefore to avoid such disputes, it will be appropriate for the investor to obtain the written confirmation of his order (Purchase/Sale) at the earliest, preferably same day.

All payments are made by cheque/pay order/demand draft and all acknowledgments are obtained in the name of stock broker (Member) of the Exchange only. No payment is made in the name of an agent or an employee of the stock broker. In case of cash payment, it must be ensured that the receipt from the stock broker is obtained in person and no other receipts is valid.

All payments are received in the shape of cheque/pay order/demand draft, issued by the stock broker only and not by his agent or any other person.

In case the investor is dealing with an agent of a stock broker, then the agent/person is an authorized agent/person and all receipts confirmations/deliveries are issued/made in the name of the stock broker on proper stationery, bearing the name of the stock broker.

All physical deliveries of shares to and from the stock broker is documented and record maintained.

When a scrip is not on the central depository system, physical delivery of all purchases is obtained with in 14 days on the other hand if the scrip is in central depository system, such a scrip shall be transferred with in 7 days from the date of receipt of a written request from the investor to deposit his/her shares with the CDC.