Investing in the capital markets poses its own level of financial risk. However, if an investor chooses to tread this path with thorough understanding while adhering to certain dos and don’ts, the journey could be quite fulfilling in terms of gains.
Here’s the lowdown on a few of the dos and don’ts that an investor can suitably follow prior to making that plunge in the capital market.
It is important that an individual deals with the markets regulator, Securities and Exchange Board of India (SEBI)-registered Depository Participants (DPs) at all times for opening a Demat (dematerialised) account. Also, remain careful to read all the documents before signing them.
Ensure to register and update the email ID and mobile number in the Demat account to receive alerts from the depository institution of the National Securities Depository Ltd (NSDL).
When it comes to registering the passwords of online platforms, ensure it is in a unique form while making it more complex and strong. In addition, make it a point to change the passwords regularly.
It is important to monitor the NSDL-Consolidated Account Statement (CAS) on a regular basis via electronic or physical mode.
Moreover, in case any change is initiated in details in the Demat account, which could be related to address, bank details, mobile number or email ID, ensure to receive the Client Master Report or the CMR copy from the DP or download it from the NSDL Speed-e mobile application.
In addition, remain watchful about the alerts received in the form of SMS or email from the NSDL with regard to debits or changes in the demographic details. Also, the Delivery Instructions Slips should be carefully kept in a secure manner.
It is important to add nominee information in the Demant account, which simplifies the procedure of transferring investments. Remember not to share One-Time Passwords (OTPs) with anyone, as these are meant to be exclusive for the investor.
Finally, do not download any unknown apps on your mobile phone or devices, as this could lead to compromising confidential information.
In order to address any complaint or grievances, an investor can suitably reach out to SCORES, which is a web-based centralised grievance redressal system of SEBI. In addition, they can contact the SMART ODR portal or approach the web-based complaint redressal system of the NSDL.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.