Stock Trading For Beginners In India

  • Ravi Singhal
  • June 25th, 2023
trading-for-beginners-in-India

Are you thinking about entering the Indian stock market but don’t know where to begin? You are not alone. India’s two major exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), together handle an average daily turnover of over ₹1 lakh crore across segments. With mobile trading apps now making online trading for beginners simpler than ever, millions of new retail investors are opening demat accounts every year.

But here is the reality: the excitement of markets can quickly turn into losses if you start without a solid foundation. This guide on stock trading for beginners is designed to give you exactly that, a structured, honest, and practical roadmap. Whether you are a working professional, a college student exploring how to start trading as a student, or simply someone curious about building wealth through markets, this article will walk you through everything from the absolute basics to placing your first real trade.

What is Stock Trading?

Stock trading refers to the process of buying and selling shares of publicly listed companies on a recognised stock exchange with the objective of generating returns. When you buy a share, you are purchasing a small ownership stake in that company. If the company’s value grows, your share price typically rises; if it falls, your investment value declines.

Unlike a fixed deposit, stock trading involves market risk, and returns are never guaranteed. Understanding this fundamental point is the first step towards becoming a responsible trader.

Why Should You Consider the Indian Stock Market?

India’s stock market is one of the fastest-growing in the world. As of 2024, the BSE has over 5,000 listed companies, while the NSE lists around 2,000+ equity stocks. The NSE’s benchmark index, NIFTY 50, has delivered compounding annual growth across multiple market cycles, though past performance does not guarantee future returns.

Key reasons beginners are attracted to Indian stock markets:

  • Low barrier to entry, you can start trading with amounts as small as the price of one share
  • Fully digital process, account opening, trading, and settlement are entirely online
  • SEBI-regulated environment providing a degree of investor protection
  • Wide variety of instruments, equity shares, mutual funds, ETFs, futures and options (F&O), bonds

Types of Stock Trading in India

Before you place your first trade, you need to understand what kind of trader you want to be. India’s stock market supports several styles of trading, each with distinct rules, risk levels, and capital requirements.

Intraday Trading (Day Trading)

Intraday trading means buying and selling a stock within the same trading day, before the market closes at 3:30 PM IST. No shares are held overnight. Brokers often allow intraday traders to take leveraged positions (trading with more capital than they actually have), which magnifies both profits and losses.

Intraday trading is considered high-risk and is generally not recommended for absolute beginners without proper learning and practice.

Swing Trading

Swing trading involves holding positions for a few days to a few weeks, aiming to profit from short-term price “swings” or trends. It requires understanding of technical chart patterns and is more suitable than intraday trading for those who cannot monitor screens all day.

Positional Trading

Positional traders hold stocks for weeks to months. They typically rely on a combination of fundamental and technical analysis and are less affected by daily market volatility.

Delivery-Based Trading

In delivery-based trading, you buy shares and hold them in your demat account for more than one trading day, potentially for years. This is the most common form of long-term investing and carries no leverage risk.

Understanding the Indian Stock Market Structure 

Equity Market

The equity, or cash, segment is where shares of listed companies are traded. NSE’s NIFTY 50 and BSE’s SENSEX are the two primary benchmark indices tracking India’s large-cap stocks.

Futures and Options (F&O) Market

Futures and Options, commonly called F&O, are derivative instruments, financial contracts whose value is derived from an underlying asset like a stock or index.

  • Futures: An agreement to buy or sell an asset at a predetermined price on a future date.
  • Options: A contract that gives the buyer the right, but not the obligation, to buy (Call Option) or sell (Put Option) an asset at a set price before a specified date.

F&O trading involves significant leverage and risk. SEBI has mandated that only individuals with adequate risk knowledge participate in derivatives trading. Beginners are strongly advised to gain experience in the equity cash segment before entering F&O.

Commodity and Currency Segments

Beyond equities, Indian exchanges like MCX and NSE also offer trading in commodities (gold, crude oil, agricultural products) and currency pairs. These are separate segments with distinct margin and regulatory requirements.

Key Stock Market Terms Every Beginner Must Know

A solid grasp of market terminology is essential before you begin online trading for beginners. Below are the most important terms, explained simply.

TermSimple Explanation
Demat AccountA digital account that holds your shares electronically (like a bank account for stocks)
Trading AccountThe account through which you place buy and sell orders on the exchange
Share/StockA unit of ownership in a company
Index (NIFTY/SENSEX)A benchmark that tracks the performance of a group of selected stocks
Bull MarketA market trend where prices are rising or expected to rise
Bear MarketA market trend where prices are falling or expected to fall
LiquidityHow easily a stock can be bought or sold without affecting its price
VolatilityThe degree of price fluctuation of a stock over time
LeverageUsing borrowed funds from your broker to trade a larger position than your capital allows
MarginThe minimum amount of capital you need in your account to take a leveraged position
PortfolioYour collection of all financial investments
Stop-LossA pre-set order to automatically sell a stock if its price falls to a defined level, limiting your loss
P/E RatioPrice-to-Earnings ratio, a measure of how expensive a stock is relative to its earnings
Circuit BreakerAn exchange-imposed halt on trading when a stock price moves beyond a set limit in one session

How to Start Trading for Beginners in India, Step-by-Step

Here is a practical, step-by-step guide on how to start trading for beginners in the Indian context.

Step 1: Understand Your Financial Goals and Risk Tolerance

Before touching a single rupee, answer these questions honestly:

  • What is my objective, income, capital appreciation, or learning?
  • How much money can I afford to risk without affecting my lifestyle?
  • What is my time availability to monitor trades?

This self-assessment will determine the trading style best suited to you.

Step 2: Open a Demat Account and Trading Account

To trade stocks in India, you need two linked accounts:

  1. Demat Account, Holds your securities electronically. Operated by depositories NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited).
  2. Trading Account, Provided by your stockbroker. This is the interface through which you place buy/sell orders.

How to open these accounts:

  1. Select a SEBI-registered stockbroker (see the section below on choosing the best broker).
  2. Complete KYC (Know Your Customer), submit PAN card, Aadhaar card, bank account details, and a photograph.
  3. In-Person Verification (IPV) is conducted digitally via video call for online account opening.
  4. Your trading account is typically activated within 1–3 business days.
  5. Accounts can be opened fully online through the broker’s platform or mobile app.

There is no regulatory minimum balance required to open a demat account in India, though brokers may have their own initial deposit requirements. Always verify these directly with your chosen broker.

Step 3: Fund Your Trading Account

Transfer funds from your linked bank account to your trading account through NEFT, IMPS, or UPI. Ensure you only deposit an amount you are fully prepared to invest, never borrow money to trade in the stock market.

Step 4: Research Before You Trade

Good research is the difference between an informed decision and a gamble. Use a combination of:

  • Fundamental analysis: Studying the company’s financial health, revenue, profit, debt, management quality, and industry position.
  • Technical analysis: Analysing price charts, volume, and indicators to time entry and exit.
  • Company news and announcements: Monitoring quarterly results, corporate actions, and regulatory filings on BSE/NSE.

Step 5: Understand and Use the Right Order Types

See the dedicated section on order types below before placing your first trade.

Step 6: Place Your First Trade

Once you have researched your stock and decided on your entry price, position size, and stop-loss level:

  1. Log in to your trading platform or app.
  2. Search for the stock by its name or symbol (e.g., RELIANCE, TCS, INFY).
  3. Select “Buy” and choose your order type.
  4. Enter the quantity and price.
  5. Review and confirm the order.
  6. Monitor the trade and honour your pre-set stop-loss.

Step 7: Review, Learn, and Repeat

Keep a trading journal, record every trade you make, the reasoning behind it, and the outcome. This is one of the most effective habits professional traders follow. Regular review of your journal helps identify patterns in both profitable and unprofitable trades.

Types of Trading Orders Every Beginner Must Know

Understanding order types is as fundamental as knowing what a stock is. Both IG’s and Fidelity’s beginner guides emphasise this as a critical skill. Here is how the main order types work in India’s exchange ecosystem.

Market Order

A market order is an instruction to buy or sell a stock immediately at the best available price in the market. It guarantees execution but does not guarantee the exact price, especially important in low-liquidity stocks where prices can slip between your click and execution.

Limit Order

A limit order allows you to specify the exact price at which you are willing to buy or sell. The order will only execute if the market reaches your price. This gives you price control but does not guarantee execution if the price never reaches your target.

Example: If HDFC Bank is trading at ₹1,700 and you want to buy it at ₹1,680, place a limit buy order at ₹1,680.

Stop-Loss Order

A stop-loss order is one of the most important risk management tools for any beginner trader. It is an instruction to your broker to automatically sell a stock if its price falls to a level you define, preventing further losses beyond a point you are comfortable with.

Example: You buy a stock at ₹500. You place a stop-loss at ₹470. If the price drops to ₹470, the order executes automatically, limiting your loss to ₹30 per share.

After-Market Orders (AMO)

AMOs allow you to place orders outside regular market hours (9:15 AM–3:30 PM IST). These orders are queued and executed when the market opens the next day. This is especially useful for those who cannot monitor markets during trading hours.

Technical Analysis Basics for Beginner Traders

Technical analysis studies past price and volume data to forecast future price movements. It is the primary tool for short-term traders.

How to Read Candlestick Charts

A candlestick shows four key price points for a given period: Open, High, Low, and Close (OHLC). The colour of the candle (typically green/white for bullish, red/black for bearish) immediately tells you whether buyers or sellers dominated that period.

Support and Resistance Levels

  • Support: A price level where a falling stock tends to pause or reverse because buyers step in.
  • Resistance: A price level where a rising stock tends to pause or reverse because sellers emerge.

Identifying these levels helps traders plan entry (near support) and exit (near resistance) points.

Key Technical Indicators for Beginners

  • Moving Averages (MA): Smooths price data to identify trend direction. The 50-day and 200-day MAs are widely watched.
  • RSI (Relative Strength Index): Measures whether a stock is overbought (above 70) or oversold (below 30).
  • MACD (Moving Average Convergence Divergence): Signals trend changes and momentum shifts.
  • Volume: High trading volume accompanying a price move confirms its strength; low volume suggests a weaker move.

Note: No technical indicator is infallible. Use them as part of a broader trading plan, not in isolation.

Understanding Equity and Debt Instruments for Beginners

Equity and debt are the two foundational categories of market instruments, and understanding them helps align investments with your financial goals.

Equity shares represent ownership in a company. When you buy shares of a listed company, you become a part-owner and stand to gain (or lose) based on the company’s performance and stock price movements. Equity carries higher risk but also greater potential for capital appreciation.

Debt instruments, such as government bonds, corporate bonds, and Non-Convertible Debentures (NCDs), represent a loan given by an investor to an issuer. In return, the issuer pays a fixed interest (coupon) and returns the principal at maturity. Debt instruments are generally less volatile than equity but offer comparatively lower returns.

For beginners in trading, equity shares on the NSE and BSE are the most common starting point. Debt instruments are typically better suited for wealth preservation and income-oriented investors.

How to Create a Trading Plan and Risk Management Strategy

A trading plan is a written set of rules that governs every decision you make in the market. Professional traders do not make impulsive decisions, they follow their plan.

Elements of a Sound Trading Plan

  • Capital allocation: How much total capital are you dedicating to trading? Never trade with money earmarked for essential expenses or emergencies.
  • Risk per trade: A widely followed guideline is to risk no more than 1-2% of your total trading capital on any single trade. This protects you from a string of losses wiping out your account.
  • Entry and exit rules: Define the conditions under which you will enter and exit a trade, before you place the order.
  • Stop-loss levels: Pre-define your maximum acceptable loss on every trade.
  • Review cadence: Set aside time weekly to review your trades and adjust your plan.

Risk-Reward Ratio Explained

The risk-reward ratio compares how much you stand to lose on a trade versus how much you aim to gain.

Example: If you risk ₹500 on a trade hoping to earn ₹1,500, your risk-reward ratio is 1:3. This means even if only 4 out of 10 trades are profitable, you may still be net positive.

Most experienced traders look for a minimum 1:2 risk-reward ratio before entering a trade.

How to Choose the Best Broker for Trading in India

The stockbroker you choose has a direct impact on your trading experience, cost structure, and the tools available to you. Since all SEBI-registered brokers provide access to the same stock exchanges, the differentiating factors come down to the following.

Key Factors to Evaluate When Selecting a Broker

  • SEBI and exchange registration: Verify the broker’s registration on the SEBI website (sebi.gov.in) and exchange membership on NSE/BSE.
  • Brokerage charges: Discount brokers charge flat fees per trade; full-service brokers charge a percentage. Understand the fee structure completely.
  • Trading platform quality: Look for a stable, fast, and feature-rich trading platform available on both desktop and mobile.
  • Research and education tools: Beginner traders benefit significantly from built-in stock screeners, charts, and research reports.
  • Customer support: Responsive support is critical, especially when you face technical issues during market hours.
  • Account opening ease: A fully digital, paperless account-opening process is now standard.

Selecting the right broker requires balancing competitive brokerage rates with a reliable platform that aligns with your specific trading goals. By carefully evaluating these factors, you can open a demat and trading account that allows you to navigate the Indian stock market with confidence.

How to Start Trading as a Student in India

Starting your investment journey as a student is one of the best financial decisions you can make, even with a small amount of capital, the learning experience is invaluable. Here is a student-specific roadmap.

Eligibility Requirements

  • You must be at least 18 years of age to open a demat and trading account independently in India.
  • If you are under 18, a guardian can open a minor demat account on your behalf, which can be converted to a regular account upon reaching adulthood.
  • You will need a PAN card (mandatory), Aadhaar card, and a bank account in your own name.

How Much Capital Do You Need as a Student?

There is no official minimum amount required by SEBI or the exchanges. You can technically buy a single share, some stocks are priced below ₹100. However, a realistic starting capital of ₹5,000–₹10,000 allows you to diversify across a few stocks and absorb small losses while learning.

Start small, learn continuously, and scale up only as your knowledge and confidence grow.

Paper Trading, Practice Before You Risk Real Money

Paper trading (also called virtual trading or demo trading) is the practice of simulating real trades without using actual money. This is one of the most effective ways for students and beginners to learn how markets work, test strategies, and understand order types, all with zero financial risk.

Several trading platforms in India offer a paper trading or simulated mode. Use this feature actively before trading with real capital. Fidelity’s beginner guide similarly emphasises practice trading as a fundamental first step before live markets.

Common Mistakes Beginners Make in Stock Trading

Learning what not to do is as important as learning what to do. Here are the most common pitfalls that cost beginners money, and how to avoid them.

  1. Trading without a plan: Entering trades on tips, news headlines, or social media recommendations without a structured plan is the fastest way to lose capital.
  2. Not using stop-losses: Hoping a losing stock “will come back” without a stop-loss in place has led to significant and avoidable losses for many retail investors.
  3. Over-leveraging: Using excessive margin or leverage amplifies losses just as much as gains. Beginners should avoid high leverage until they are consistently profitable.
  4. Overtrading: Placing too many trades in pursuit of activity leads to higher brokerage costs and emotional exhaustion, both detrimental to performance.
  5. Ignoring transaction costs: Brokerage, STT (Securities Transaction Tax), exchange fees, and SEBI charges add up over time and erode profitability if not accounted for.
  6. Chasing past performance: Buying a stock simply because it has risen sharply in the recent past (FOMO, Fear of Missing Out) is a classic beginner error.
  7. Neglecting risk management: No strategy works 100% of the time. The key to long-term trading success is protecting your capital during losing streaks.

Brokerage Charges and Taxes on Stock Trading in India

Understanding the cost of trading is essential. Two categories of costs affect your net profitability: broker charges and government taxes.

Types of Charges in Stock Trading

When you execute a trade in India, several charges apply beyond the trade price:

  • Brokerage: The fee charged by your broker for executing the trade. Flat-fee brokers typically charge ₹10–₹20 per executed order for intraday and F&O; delivery trades may be free at some brokers.
  • Securities Transaction Tax (STT): A government-mandated tax on the value of securities traded. For equity delivery: 0.1% on both buy and sell sides. For intraday: 0.025% on the sell side only [8].
  • Exchange Transaction Charges: Levied by NSE/BSE on total turnover.
  • SEBI Turnover Fee: A small regulatory fee.
  • GST: 18% on brokerage and transaction charges.
  • Stamp Duty: Varies by state; applied on buy-side transactions.

Tax on Trading Profits, STCG and LTCG Explained

As per the Union Budget 2024, the following capital gains tax rates apply to listed equity shares and equity mutual funds:

TypeHolding PeriodTax Rate (Post Budget 2024)
Short-Term Capital Gain (STCG)Less than 12 months20% (revised from 15%)
Long-Term Capital Gain (LTCG)12 months or more12.5% on gains above ₹1.25 lakh (revised from 10% and ₹1 lakh limit)

These rates are subject to applicable surcharge and cess. Tax laws may be amended from time to time. Consult a qualified Chartered Accountant for personalised tax advice.

SEBI Regulations Every Beginner Trader in India Must Know

The Securities and Exchange Board of India (SEBI) is the primary regulator of India’s securities markets. Compliance with SEBI rules protects both investors and market integrity.

Key regulatory frameworks for retail investors:

  • Securities Contracts (Regulation) Act, 1956: Governs the trading of securities on recognised stock exchanges [10].
  • SEBI Act, 1992: Establishes SEBI’s authority to regulate and develop the securities market.
  • Depositories Act, 1996: Governs the holding and transfer of securities in dematerialised (electronic) form.
  • SEBI Investor Charter: Every SEBI-registered broker must display the Investor Charter, which outlines your rights as an investor, grievance redressal mechanisms, and expected service standards.

Practical compliance tips for beginners:

  • Always verify your broker’s SEBI registration number on sebi.gov.in before opening an account.
  • Check your Consolidated Account Statement (CAS) regularly to verify your holdings.
  • Use SEBI’s SCORES portal (scores.gov.in) to file complaints against brokers or listed companies if required.
  • Do not engage with unregistered advisors promising guaranteed returns, this is a red flag and likely illegal under SEBI regulations.

Conclusion

Stock trading for beginners in India is a journey that rewards patience, discipline, and continuous learning above all else. The Indian markets, regulated by SEBI and underpinned by two world-class exchanges, offer genuine wealth-creation opportunities for those who approach them with the right knowledge and risk mindset.

Frequently Asked Questions (FAQs)

There is no SEBI-mandated minimum investment amount to start trading. Practically, you can begin with the price of a single share, which may range from a few rupees to several thousand rupees depending on the stock. A realistic and prudent starting point for beginners is ₹5,000 to ₹10,000, enough to buy a small portfolio while keeping risk manageable. Never invest money you cannot afford to lose.

Broker charges vary by broker type and trade type. Key charges include brokerage (flat fee or percentage), STT, exchange transaction charges, SEBI fees, GST at 18%, and state stamp duty. Some discount brokers offer zero brokerage on equity delivery trades, while charging a flat fee for intraday and F&O. Always read the complete fee schedule before opening an account.


Yes. Trading in Indian markets is governed primarily by the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996. All stockbrokers must hold a valid SEBI registration and exchange membership. As a retail investor, you are protected under SEBI’s Investor Charter and can raise grievances through the SCORES portal.


Use a combination of fundamental and technical analysis. Start with the company’s quarterly and annual results (available on BSE/NSE), read analyst reports, monitor company announcements (corporate actions, management commentary), and track sector news. For beginners, starting with index constituents, NIFTY 50 or SENSEX stocks, provides a higher quality starting universe compared to smaller, less-liquid stocks.


The best platform is one that is SEBI-registered, offers a stable trading interface, provides educational resources, and has transparent charges. GCL Broking offers a beginner-friendly, fully digital trading platform with dedicated research support and competitive brokerage.

Intraday trading involves buying and selling stocks within the same trading day, before the market closes. It carries higher risk due to leverage and short timeframes and is not recommended for absolute beginners without prior knowledge and practice. Start with delivery-based trades to build familiarity, then transition to intraday trading after consistent paper trading experience.

Trading profits are taxed as either Short-Term Capital Gains (STCG at 20%) or Long-Term Capital Gains (LTCG at 12.5% above ₹1.25 lakh exemption) for equity, as per the Union Budget 2024. If you actively trade intraday, those profits may be classified as business income and taxed at your applicable income tax slab rate. Consult a Chartered Accountant for your specific tax filing requirements.

Ravi Singhal
Mr. Ravi Singhal is the CEO of GCL Broking with over 18 years of experience in finance and technology. He focuses on guiding investors with disciplined, long-term thinking.

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Please update your 6 KYC attributes viz. Name, Address, PAN (linked with Aadhaar), Valid Mobile Number, Valid Email ID and Income Range latest by June 30, 2022, failing which your Demat and/or Trading account/s, will be liable for being frozen for debits. 2. Investment in Securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. 3. Prevent Unauthorized Transactions in your Demat and/or Trading account- Update your Mobile Number with your Depository Participant and Stock Brokers. Receive alerts on your Registered Mobile/ Email ID for all debit and other important transactions in your account directly from CDSL/Exchanges at the end of the day. 4. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 5. Kindly note that as per NSE circulars No. - NSE/INVG/36333 dated November 17, 2018, NSE/INVG/37765 dated May 15, 2018 and BSE circular No.- 20171117-18 dated November 17, 2018, 20180515-39 dated May 15, 2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. Investors are advised not to blindly follow the unfounded rumours, Tips given in social networks, SMS, WhatsApp, Blogs etc. and invest only after conducting appropriate analysis of respective companies. 6. Investors have to pay minimum 20% upfront margin of the transaction value to trade in cash market segment. 7. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs)( issued vide circular reference -- for NSE - NSE/INSP/45191 dated July 31, 2020 & NSE/INSP/45534 dated August 31, 2020 and for BSE - issued vide notice no. 20200731-7 dated July 31, 2020 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard. 8. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. 9. GCL is engaged in Client based and proprietary trading on various stock exchanges. 10. Charges for Depository Services has been revised with effect from 30.04.2022 and Revised/Updated Tariff Structure is available under the Downloads section 11. Please read the Risk Disclosure Document and Do's & Don'ts prescribed by the Exchanges carefully before investing. Available under Downloads section as well 12. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. 13. No need to issue cheque/s by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remain in investor's account. 14. Kindly refer to NSE Circulars NCL/CMPL/49348 dated August 20, 2021, NCL/CMPL/49640 dated September 17, 2021 and NCL/CMPL/49764 dated September 29, 2021 for details on Segregation and Monitoring of Collateral at Client Level. 15. Whenever you are buying of Rights entitlements (RE), please note that such buying of RE shall not automatically result in credit of the Rights Equity shares in the your demat account and the you will have to apply for the Right Equity Shares in order to receive the same.

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  2. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.

  3. Prevent Unauthorized Transactions in your demat account -- Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your Demat Account directly from CDSL on the same day...............issued in the interest of investors.

  4. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

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  1. All investors are requested to take note that 6 KYC attributes i.e., Name, PAN, Address, Mobile Number, Email id and Income Range have been made mandatory. Investors availing custodian services will be additionally required to update the custodian details.

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  • Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section

  • Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

  • Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

  • Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

  • Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

  • Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

Risk Disclosures

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

  • On an average, loss makers registered net trading loss close to ₹ 50,000.

  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.

  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Advisory for option Trading

  • Sharing of trading credentials – login id & passwords including OTP’s.

  • Trading in leveraged products like options without proper understanding, which could lead to losses

  • Writing/ selling options or trading in option strategies based on tips, without basic knowledge & understanding of the product and its risks

  • Dealing in unsolicited tips through WhatsApp, Telegram, YouTube, Facebook, SMS, calls, etc.

  • Trading in “Options” based on recommendations from unauthorised/unregistered investment advisors and influencers.

In case, if you want to register your complaint through SEBI Score Portal, please Click here Filing compliant on SCORES- Easy & Quick :
(a) Register on SCORES Portal
(b) Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-Mail ID
(c) Benefits: (i). Effective Communication (ii). Speedy redressal of the grievances

How SCORES Works

  • Register on SCORES : Fetch details from KYC Registration Agency or fill the Registration Form

  • Lodge Complaint : Select appropriate category of complaint, Nature of Complaint and Name of the SEBI regulated Entity (i.e. Listed Company/ Registered Intermediaries/ Market Infrastructure Institutions)

  • Track Status : Track the status of complaint. Please note that automatic reminders are sent to entities for timely resolution of complaint.

  • Seek Review : Two level review system- Seek Review of your complaint within 15 days from date of receipt of ATR from the Entity for First Level Review and 15 days of receipt from Designated Body for Second Level Review

  • Provide Feedback : Provide Feedback on the redressal process and quality of disposal of complaint within 15 days of closure of complaint in order to improve the SCORES system

If you want to register your complain via SMART ODR Portal click here

The SMART ODR Portal - Securities Market Approach for Resolution Through ODR Portal, has been established by the 7 Market Infrastructure Institutions together with ODR Institutions to help investors access efficient dispute resolution fully online.

Follow the steps below to resolve a dispute.
1. Register on SMART ODR Portal
Click on Create Account to register on the platform.
2. File a New Dispute
Click on File a New Dispute to begin.
3. Select Intermediary
Select the Intermediary against whom you wish to file a dispute.
4. Select Category
Select the relevant Categories for your dispute.
5. Enter Dispute Details
Fill details of the dispute and attach relevant files or documents.
6. Track Resolution Progress
Once your dispute is filed, track progress easily under the Dispute Timeline.

*Disclaimer: "Investment in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit."
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