F. Expectations from the investors (Responsibilities of investors)
•
Do’s
i. Always deal with SEBI registered Investment Advisers.
ii. Ensure that the Investment Adviser has a valid registration certificate.
iii. Check for SEBI registration number.
Please refer to the list of all SEBI registered Investment Advisers which is
available on SEBI website in the following link: https://www.sebi.gov.in/sebiweb/
other/OtherAction.do?doRecognisedFpi=yes&in tmId=13)
iv. Pay only advisory fees to your Investment Adviser. Make payments of advisory fees
through banking channels only and maintain duly signed receipts mentioning the
details of your payments.
You may make payment of advisory fees through Centralised Fee Collection
Mechanism (CeFCoM) of IAASB if investment adviser has opted for the mechanism.
v. Always ask for your risk profiling before accepting investment advice. Insist that
Investment Adviser provides advisory strictly on the basis of your risk profiling and
take into account available investment alternatives.
vi. Ask all relevant questions and clear your doubts with your Investment Adviser before
acting on advice.
vii. Assess the risk–return profile of the investment as well as the liquidity and safety
aspects before making investments.
viii. Insist on getting the terms and conditions in writing duly signed and stamped. Read
these terms and conditions carefully particularly regarding advisory fees, advisory
plans, category of recommendations etc. before dealing with any Investment Adviser.
ix. Be vigilant in your transactions.
x. Approach the appropriate authorities for redressal of your doubts / grievances.
xi. Inform SEBI about Investment Advisers offering assured or guaranteed returns.
xii. Always be aware that you have the right to exit the service of an Investment Adviser
xiii. Always be aware that you have the right to seek clarifications and clear guidance on
advice
xiv. Always be aware that you have the right to provide feedback to the Investment Adviser
in respect of services received.
xv. Always be aware that you will not be bound by any clause, prescribed by the
investment adviser, which is contravening any regulatory provisions.
•
Don’ts
i. Don’t fall for stock tips offered under the pretext of investment advice.
ii. Do not provide funds for investment to the Investment Adviser.
iii. Don’t fall for the promise of indicative or exorbitant or assured returns by the
Investment Advisers. Don’t let greed overcome rational investment decisions.
iv. Don’t fall prey to luring advertisements or market rumors.
v. Avoid doing transactions only on the basis of phone calls or messages from any
Investment adviser or its representatives.
vi. Don’t take decisions just because of repeated messages and calls by Investment
Advisers.