SEBI Investor Protection Directive | BSE, NSE & CDSL Member

Responsibilities of an Investor & Due Diligence Guide

Essential statutory obligations, trade verification practices, and security precautions mandated by SEBI for capital market participants.

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Statutory Disclosures /

Responsibilities of an Investor

2. Account Opening, KYC & Mandatory Nomination

Carefully read the Rights and Obligations document and Risk Disclosure Document before signing.
Ensure all KYC details (Mobile, Email, PAN, Address) are accurate and kept updated to receive trade alerts.
Nomination is mandatory—ensure you have registered a nominee for your trading and demat accounts to safeguard assets for your legal heirs.
Verify that your bank account and demat account linked for trading belong to you only.

Always pay funds only from your designated linked bank account to the broker’s SEBI-mandated upstreaming bank account.
Strictly avoid any cash transactions. SEBI regulations prohibit brokers from accepting cash; transactions must be through banking channels only.
Transfer funds only to the official virtual accounts or bank details provided by the broker and verified as 'Client Account'.

Place clear and unambiguous orders; verify the order details in the trade confirmation received via SMS/Email from the exchange.
Examine the Contract Note sent within 24 hours of trade execution for discrepancies in price or quantities.
Audit your ledger and demat holding statements regularly to ensure all securities and funds are accounted for correctly.
Receive consolidated monthly statements from NSE/BSE and CDSL/NSDL to verify your global position.

Maintain strict custody of your Delivery Instruction Slips (DIS); never hand over signed blank DIS to anyone.
Use the e-DIS facility or TPIN for secure authorization of delivery sales, ensuring you control the transfer of securities.
Update your mobile number and email ID with the Depository Participant to receive transaction alerts.
Opt for the 'Freeze' facility in your demat account if you do not intend to sell securities for a prolonged period.

Never share your trading terminal password or TPIN with broker staff, relationship managers, or third parties.
Enable two-factor authentication (2FA) and biometric locks on all trading applications.
Avoid logging into your trading account using public Wi-Fi or shared computers at cyber cafes.

Ensure sufficient funds/securities are available before trade execution to fulfill pay-in obligations.
In case of discrepancies or grievances, immediately report the matter in writing to the broker. If unresolved, escalate to the Exchange grievance cell or SEBI SCORES portal.

Verify that the stock broker is registered with SEBI by checking the registration number on their website and the SEBI portal.
Ensure the intermediary is a recognized member of the Stock Exchanges (BSE/NSE).
Do not deal with unregistered entities or individuals offering guaranteed returns outside the regulatory framework.

Intermediary Registration Verification

Account Opening & KYC Diligence

Mandatory Upstream Banking & No Cash

Trade Execution & Daily Reconciliations

Demat Account & DIS Protection

Credential Confidentiality & Cyber Safety

Prompt Dispute Escalation