Introduction

Bombay Stock Exchange Limited, established in 1875 as the “Native Share and Stock Brokers’ Association is one of the oldest stock exchanges in Asia. BSE provides an efficient market, upholding the interests of the investors. It strives to educate and enlighten the investors by making the necessary information available to them. All market related information are is available on its website (www.bseindia.com).


Department of Investor’ Services

Protecting the interest of the investors dealing in securities is one of the main objectives of BSE. In pursuit of this objective, Department of Investor’ Services l was set up in 1986. The grievances of investors against listed companies and BSE Trading Members are redressed by BSE. BSE also assists in the arbitration process both between Members and investors. The capital market can grow only when investors find it safe for them to invest and they are assured that the rules governing the market are fair and just to all the players.
With a view to ensure speedy and effective resolution of claims, differences and disputes between non-members, BSE has laid down a set of procedures for arbitration thereof. These procedures are duly embodied in the Rules, Bye-laws and Regulations of BSE, which have been duly approved by the Government of India / Securities and Exchange Board of India (SEBI).


Safeguards for Investors

These are some of the safeguards the investors should keep in mind before trading in the securities market

1. Selecting a Broker/ Sub-Broker
   
   
   • Deal only with a SEBI registered Broker / Sub-broker after due diligence. Details of the BSE Brokers can be obtained from the Member's List published by BSE and from the website : www.bseindia.com ( click Members Database)
   
   
   
2. Entering into an Agreement
   
   
   • Fill in a Client registration form with the Broker / Sub – broker
   • Enter into Broker / Sub–broker – Client Agreement. This agreement is mandatory for all investors for registering as a client of a BSE Trading Member. Ensure the following before entering into an agreement:
     
     Carefully read and understand the terms and conditions of the agreement before executing the same on a valid stamp paper of the requisite value.
     
     Agreement to be signed on all the pages by the Client and the Member or their representative who has the authority to sign the agreement. Agreement has also to be signed by the witnesses by giving their names and addresses.
   
   
   
3. Transacting
   
   
   • Specify to the Broker / Sub- broker the exchange through which your trade is to be executed and maintain separate account for each exchange.
   • Obtain a valid Contract Note (from the Broker) / Confirmation Memo (from the Sub–broker) within 24 hours of the execution of the trade.
     
     Contract note is a confirmation of trade(s) done on a particular day for and on behalf of a client in a format prescribed by BSE. It establishes a legally enforceable relationship between the Member and the Client in respect of settlement of trades executed on BSE as stated in the Contract Note.
     
     Contract Notes are made in duplicate, and the Member and Client both keep one copy each. The Client is expected to sign on the duplicate copy of the Contract Note,confirming receipt of the original.
     
     
     1. Contract Note – Form ‘A’ – Contract Note issued where Member is acting for constituents as brokers and agents.
     2. Contract Note – Form ‘B’ – Contract Note issued by Members dealing with constituents as principals.
     
     
   • Ensure that the Contract Note contains:
     
     SEBI registration number of the Member/ Sub-broker
     
     Details of trade such as, Order no, trade no., trade time, quantity, price, brokerage, settlement number, details of other levies.
     
     Trade price should be shown separately from the brokerage charged.
     
     As stipulated by SEBI, the maximum brokerage that can be charged is 2.5% of the trade value. This maximum brokerage is inclusive of the brokerage charged by the sub-broker (Sub-brokerage cannot exceed 1.5% of the trade value.) Any additional charges that a Member can charge are Service Tax of the brokerage and any penalties arising on behalf of client .and Securities Transaction Tax (STT)
     
     The brokerage and service tax is indicated separately in the Contract Note.
     
     Signature of authorised representative.
     
     Arbitration clause stating that the trade is subject to the jurisdiction of Mumbai must be present on the face of the Contract note.
   
   
   
4. Settlement
   
   
   • Ensure delivery of securities /payment of money to the broker immediately upon getting the Contract Note for sale / purchase but in any case, before the prescribed pay-in-day
     
     
   • Member should pay the money or securities to the investor within 48 hours of the payout.
     
     
   • Open a demat account.
     
     
   • Opt for buying and selling shares in demat form
     
     
   • For delivery of shares from demat account, give the Depository Participant (D P) ‘Delivery out’ instructions to transfer the same from the beneficiary account to the pool account of broker through whom shares and securities have been sold.
     
     The following details to be given to the DP: details of the pool a/c of broker to which the shares are to be transferred, details of scrip, quantity etc. As per the requirements of depositories, the Delivery out Instruction should be given at least 48 hours prior to the cut-off time for the prescribed securities pay-in.
     
     
   • For receiving shares in your demat account, give the Depository Participant (D.P.) ‘Delivery in’ instructions to accept shares in beneficiary account from the pool account of broker through whom shares have been purchased.
     
     
   • If physical deliveries are received, check the deliveries received as per Good/Bad delivery guidelines issued by SEBI.
     
     
   • Bad delivery cases should be sorted out through BSE mechanism immediately.
     
     
   • Ensure that all registration of physical shares for ownership by transfer should be executed by a valid, duly completed and stamped transfer deed.
     
     

Rights of Investors

• To receive all benefits/ material information declared for the investors by the Company.
  
  
• Prompt services from the Company such as transfers, Sub-divisions and consolidation of holdings in the Company.
  
  
• As an equity holder, a right to subscribe to further issue of capital by the Company.
  
  
• Brokerage not to exceed 2.5 % of the contract price.
  
  
• Receipt of the Contract Note from the broker in the specified format showing transaction price and brokerage separately.
  
  
• Expect delivery of shares purchased/value of shares sold within 24 hours from pay-out.
  
  
• Approach BSE at the following address in case of complaints against companies listed on BSE or against the Trading Memebrs of BSE:
  
  Department of Investor’ Services , Bombay Stock Exchange Ltd., 1st Floor , Rotunda Building, Bombay Samachar Marg, Mumbai – 400001
  
  

General Do's and Don’ts for Investors

More and more investors are investing / tradinag in the stock markets than ever before. It is therefore imperative for the investors to follow some Dos and Don'ts while dealing in the stock market.

Given below are some general Dos and Don'ts for investors:

     Dos

• Always deal with the market intermediaries registered with SEBI / stock exchanges.
• Give clear and unambiguous instructions to your broker / agent / depository participant.
• Always insist on contract notes from your broker. In case of doubt of the transactions, verify the genuineness of the same on the BSE website.
• Always settle the dues through the normal banking channels with the market intermediaries.
• Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals and recent announcements made by them and various other disclosures made under various regulations. The sources of information are the websites of Exchanges and companies, databases of data vendor, business magazines etc.
• Adopt trading / investment strategies commensurate with your risk-bearing capacity as all investments carry some risk, the degree of which varies according to the investment strategy adopted.
• Carry out due diligence before registering as client with any intermediary. Carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of the investor registration requirement for dealing through brokers.
• Be cautious about stocks which show a sudden spurt in price or trading activity, especially low price stocks.
• There are no guaranteed returns on investment in the stock market.
• Always keep copies of all investment documentation (e.g. application forms, acknowledgements slips, contract notes).
• Always keep copies of documents you are sending to companies etc.
• Send important documents by a reliable mode (preferably through registered post) to ensure delivery.
• Ensure that you have money before you buy.
• Ensure that you are holding securities before you sell.
• Follow up diligently and promptly e.g. If you do not receive the required documentation within a reasonable time, contact the concerned person; i.e. the Trading Member, company etc., immediately.
• Mention clearly whether you want to transact in physical mode or in demat mode.

     Don'ts

• Don't deal with unregistered brokers / sub-brokers, intermediaries.
• Don't deal based on rumours or ‘tips'.
• Don't fall prey to promises of guaranteed returns.
• Don't get misled by companies showing approvals / registrations from Government agencies as the approvals could be for certain other purposes and not for the securities you are buying.
• Don't leave the custody of your Demat Transaction slip book in the hands of any intermediary.
• Don't get carried away with advertisements about the financial performance of companies in print and electronic media.
• Don't blindly follow media reports on corporate developments, as some of these could be misleading.
• Don't blindly imitate investment decisions of others who may have profited from their investment decisions.
• Don’t forgo obtaining all documents of transactions, in good faith even from people whom you know.
• Don’t forget to take note of the risks involved in an investment.
• Don’t get misled by guarantees of repayment of your investments through post-dated cheques.
• Don’t hesitate to approach concerned persons and then the appropriate authorities.
• Don’t get swayed by promises of high returns.

BSE has installed a Toll Free line 1800 22 6663 at which the investors can inform on any specific lead with regard to any type of undesirable trading practices in any scrip or any type of market aberration observed by them. Investors are requested to get their messages recorded in English or Hindi. Identity of the investor will be kept confidential.

Brokerage & Stamp Duty

BSE has not prescribed any minimum brokerage, and hence the same is negotiable. Though the maximum brokerage allowed is 2.5% percent of the contract value, the brokerage generally charged by the Members is much lower. A Member may have different scales of brokerages for delivery transactions, trading transactions and the like.

The present duty for equity shares transfer is 50 paise for every Rs.100 or part thereof on the amount of consideration while the duty for transfer of debentures varies from state to state, applicable on the basis of the location of the registered office of the concerned issuing company.


Investor Awareness & Education

Investor Awareness Programmes

Investor Awareness Programmes are being regularly conducted by BSE at various places in the country to educate the investors and to create awareness among the investors regarding the capital market and in particular the working of the stock exchanges. .

The Investor Awareness Programmmes cover topics like Instruments of Investment, Portfolio approach, Mutual funds, Trading, Clearing and Settlement, Rolling Settlement, Investors' Protection Fund, Trade Guarantee Fund, Dematerialisation of Shares, Debt Market, Investors’ Grievance Redressal system available with SEBI, BSE & Company Law Board, information on Sensex and other Indices, Derivativesetc.

BSEBombay Stock Exchang also takes initiatives through:

BSE Training Institute (BTI) which organises investor education programs periodically on various subjects like Capital Markets, Fundamental Analysis, Technical Analysis, Derivatives, Index Futures and Options, Debt Market etc. For the Derivatives market, BTI conducts BCDE i.e. BSE’s certification on Derivative Exchange, a certification test recognized by the SEBI. . For details,contact : BSE Training Institute, 18th Floor, P.J.Tower, Dalal Street, Mumbai- 400001.

BSE's Official Website - www.bseindia.com which is the focal point for information dissemination. Itupdates the investors with the latest information on the stock market on a daily basis through real time updation of statistical data on market activity, corporate information and results. Educative articles on various products and processes are also available on the site.

Publications: BSE regularly comes out with publications for investor education on various products and processes.


Investor Service Centres

BSE Investor Service Centre, Delhi

BSE Investor Service Centre
Floor 7, Mercantile House,
Kasturba Gandhi Marg
New Delhi -110 001

Contact Persons : Rajeev Garg /Anupam Jha Phone:: 011-41510968, 41510481
Telefax : 011-41510480

E-mail : iscdelhi@bseindia.com

BSE Investor Service Centre, Kochi

BSE Investor Service Centre
4th Floor, M.E.S.
Dr.P.K. Abdul Gafoor Memorial Culture Complex
Judges Avenues, Kaloor
Kochi - 682017

Contact Person : Marina Jose
Phone : 0484-2405275
Telefax : 0484-2405276

E-mail : isccochin@bseindia.com

BSE Investor Service Centre, Kolkata

BSE Investor Service Centre
1st Floor, Kishor Bhaban
17, R. N. Mukherji Road
Kolkata - 700001

Contact Persons : Purushottam Saraf /Mr. Sanjeev Jaiswal
Phone : 033 - 22133184
Telefax : 033 -22130530
E-mail:

BSE Investor Service Centre, Ahmedabad

BSE Investor Service Centre
804, Corporate House
Ashram Road
Ahmedabad - 380 009

Contact Persons : Tushar Shastri /Malav Chokshi
Phone: 079-2754 0445
Telefax : 079-55610755
E-mail:

BSE Investor Service Centre,Chennai

BSE Investor Service Centre
4th Floor,Exchange Building
No.11,Second Line Beach
Chennai - 600 001

Contact Person :J. Nirmala
Phone: 044 -42163999
Telefax : 044 - 42164999
E-mail : iscchennai@bseindia.com

BSE Investor Service Centre, Rajkot

BSE Investor Service Centre
401, 4th Floor, Aalap – B
Limda Chowk,
Opp. Shastri Maidan
Rajkot – 360 001

Contact Person :Kartik Bavishi
Phone: 0281- 6595542
Telefax : 0281–2464348


Quotation Files in Database Format (dbf)

Rates of scrips traded (Group A+B1+B2+F) (with volume)
The rates include open, high, low and close prices of all the scrips traded and also no. of trades, volume and value of shares traded.
Annual Subscription Charges: Rs 15,000
Timings - 5.30 pm to 7.30 pm (Monday to Friday)

Dissemination of Daily Notices and Circulars of BSE

Installation and maintenance charges for first six months - For Members of BSE : Rs. 1,500
For non-members : Rs. 5,000
Please make the payment by cheque/demand draft in favour of Bombay Stock Exchange Ltd. and send to the Research and Information Dept., BSE, P.J. Towers 25th Floor , Dalal Street, Mumbai 400001.

Contact

For further information/clarification, please contact :
Business Development,BSE
Phone.: 2721233/4 Extn. : 8390