Home > Business > Special
A Correspondent in Mumbai |
December 23, 2003
With the Indian stock markets booming, investors are rushing to the bourses.
But the small investor needs to exercise caution so that he does not lose out in this rally.
The Securities and Exchange Board of India, along with the National Securities Depository Ltd, is thus trying to aggressively promote amongst the investors, the need to be cautious.
The Sebi says that its vision is "to be the most dynamic and respected regulator globally" and "to protect the interests of investors in securities and to promote the development of, and to regulate the securities market."
In their latest attempt at investor education, the Sebi and the NSDL have listed the following Dos and Don'ts for investors:
- Don't deal with unregistered intermediaries.
- Don't fall prey to promises of unrealistic returns.
- Don't invest on the basis of hearsay and rumours; verify before investment.
- Don't forget to take note of risks involved in the investment.
- Don't be misled by rumours circulating in the market.
- Don't be influenced into buying into fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non-authentic favourable looking articles/stories.
- Don't follow the herd or play on momentum - it could turn against you.
- Don't be misled by so called 'hot tips.'
- Don't try to time the market.
- Don't hesitate to approach the proper authorities for redressal of your doubts/grievances.
- Don't leave signed blank Delivery Instruction Slips of your demat account lying around carelessly or with anyone.
- Do not sign blank Delivery Instruction Slips and keep them with Depository Participant or broker to save time. Remember your carelessness can be very dangerous.