Before you actually begin share trading and enter the world of the markets it is advisable to go through the list of the dos and the donts related to share trading. While entering the market you need to take the following precautions.
Ensure that the broker or the sub broker that you are about to be using has a contract note issued under his name. The contract name should contain the name of the broker, his address as well as the Securities exchange board of India that is SEBI’s number of that particular broker. You will also find the signature or the stock broker by the authorized signatory.
The brokerage or the sub broker can not charge more than 2.5% of the value that is mentioned on the purchase or the sale note.
In the case of a broker the registration number given by the SEBI will begin with the letters INB and that of a sub broker will begin with the letters INS. So make sure you check this before you choose our broker or sub broker as may the case be. See that you have the contract note from the broker with in a day of the transaction being made.
Always keep asking for monthly or periodic statements of funds and securities from your broker or the sub brokers.
Do not sign any blank delivery instruction while performing any share trading transaction.
Keep a regular tab on your financial placements and keep the contract notes or any other receipts safely even after the transaction has been completed.