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The Investor Are Advised
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To purchase shares against full payment and take deliveries for them in accordance with the settlement cycle. All other types of trade practices prevalent in the market are a potential risk and would not be covered under the term " investment ".
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That the stock broker is with in his legal rights to square an open position if the investor circumvents his obligation.
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If Maintaining A Sub-Account With CDC Through A Stock Broker The Investor Should
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Obtain written confirmation of transfer of shares from or to his sub-account soon after the settlement date.
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Obtain the status of his holdings periodically and have it reconfirmed by the CDC.
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Not give his consent to the stock broker to pledge his shares with the bank for borrowing purposes.
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Open his account in the CDC at the earliest that would provide him with the necessary protection.
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Carry out required homework and identify investments that are suitable in the light of Overall investment objectives.
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