Do’s and Don’ts for an investor in capital market


  • To read all documents carefully before signing.
  • To always deal with SEBI registered stock broker or sub broker or authorised person for any investment through stock market.
  • To invest using banking channels, i.e. no dealing in cash
  • Do remember that nobody can promise you guaranteed returns in stock market investments. It is neither allowed nor possible.
  • Do register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.

Don’t s

  • Do not invest and trade on the basis of ‘Tips’.
  • Do not share password of your online trading and demat account with anyone.
  • Do not share OTP received from banks, brokers, etc. with anyone calling you. These are meant to be used by you only.
  • Do not invest in any chit fund, ponzi and unregistered collective investment company.
  • Do not follow herd mentality for investments. Seek experts and professionals advise for your investments.
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A.Sulthan, Ph.D.,
Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
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