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Responsibilities of Investors and Traders (Do’s and Don’ts)

Do’s

  • For any recommendation on security trading or investment always deal with SEBI registered Research Analysts.
  • Ensure that the Research Analyst has a valid registration number assigned by SEBI by referring to official SEBI website: https://www.sebi.gov.in/
  • Always read relevant research report carefully before investing and read relevant rationale before trading.
  • Pay your Research Analyst through proper payment gateway only and maintain receipts of payments mentioning the details of your payments.
  • Clear your doubts with your Research Analyst before acting on the recommendation and be an informed investor and trader.
  • Inform SEBI about Research Analysts offering assured or guaranteed returns.
  • Always manage your trade size as per your risk appetite and follow stop loss strictly in trading.

Don’ts

  • Don’t provide your demat or trading account details to the Research Analyst.
  • Never ask Research Analyst to execute/carry out any trade (purchase/sell transaction) on anyone’s behalf.
  • Don’t expect any guaranteed return in equity stock market or mutual fund investment.
  • Don’t expect 100% accuracy in any trade or investment.
  • Don’t expect an immediate return in investment. Investment is a long-term plan based on your financial goal and horizon. If you are a long-term investor do not get carried away by short-term market fluctuations and transients.
  • Do not get attracted by alluring offers.