Professional Documents
Culture Documents
Message To Investors Relating To
Message To Investors Relating To
relating to
PRIMARY MARKETS
SECONDARY MARKETS
SECURITIES HOLDERS
CORPORATE RESTRUCTURING
MUTUAL FUNDS
PRIMARY MARKETS
DOS
9 Take a holistic view of your financial goals and invest accordingly
9 Be aware that value of your investments are subject to ups and downs of
the market and do not offer guaranteed returns like bank deposits
9 Read the Offer Document (OD) before investing and carefully note:
Risk factors pertaining to the issue
Financials of the issuer
Object of the issue
Outstanding litigations and defaults, if any
IPO Grading / Credit rating
Basis of issue price
Business Overview
Background of promoters
Instructions before making application
9 Be aware that
The OD is available on the website of SEBI, Issuer and Stock
Exchange(s)
Physical copy of the OD may be obtained from SEBI or from
Merchant Banker (MB) or the issuer
Abridged OD is available along with the issue application form
9 Be aware that an intermediary or its staff making a recommendation, is
required to disclose their interest/ position in that issue
9 Use Application Supported by Blocked Amount (ASBA) for equity issues -
the smart choice
Avail ASBA application forms from website(s) of Stock Exchange(s)
and submit it to Self Certified Syndicate Bank (SCSB)
Submit application electronically if you have internet banking facility
with SCSBs
Be aware that you can make up to 5 ASBA applications per bank
account per issue
9 Fill the application in BLOCK LETTERS in English
9 Peruse the status of the ‘book’ on the Stock Exchange website(s)
9 In case of any doubt / grievance, contact the Compliance Officer / MB
named in the OD
Be aware that listed companies, Registrar to the Issue (RTI) and
MBs are required to have a dedicated Email ID for registering your
complaints
9 Be aware that investor complaints against listed companies are displayed
on the websites of Stock Exchange (SE)
9 Approach SEBI, if your grievance is not resolved
9 Peruse the post issue advertisements issued by the company for issue
price and basis of allotment
DON’TS
8 Do not invest with borrowed money
8 Do not expect unrealistic / guaranteed returns
8 Do not invest without reading the OD
8 Do not be influenced by advertisement / advices / rumours / unauthentic
news promising unrealistic gains and windfall profits in mass media
8 Do not be guided by astrological predictions on share prices and market
movements
8 Do not fall prey to market rumours / ‘hot tips’/ ‘opportunity knocks only
once’ kind of advice
8 Do not be swayed by market sentiments
8 Do not invest on any explicit / implicit promises made by anyone
8 Do not indulge in impulse investing
8 Do not participate in unauthorised and illegal trades outside the stock
exchange mechanism prior to listing (grey market)
8 Do not give wrong / contradictory / incomplete information in the
application form
8 Do not submit multiple applications
8 Do not mutilate the application form
8 Do not pay application money by postal order / money order / cash
8 Do not send the application form by post
8 Do not speculate on high returns upon listing
8 Do not engage in practices that distort demand / prices artificially
RIGHTS
9 To offer comments, if any, on the draft OD available on the websites of
MB / Stock Exchange / SEBI and have them addressed in the (final) OD
filed with Registrar Of Companies / Stock Exchange
9 To revise / change your bid before its closure
9 To withdraw your application, before the allotment
In case of ASBA application
up to the bid closure period by writing to the SCSB
after closure of issue by writing to the RTI
In case of normal application
by writing to the RTI
9 To receive in equity issue(s)
allotment and demat credit within 12 working days of its closure
refund within 15 days of its closure
9 To receive allotment / refund within 30 days of closure of debt issue(s)
9 To receive refund though ECS / NEFT / RTGS, wherever such facility is
available
9 To receive interest @ 15% p.a. upon delay in allotment / refund beyond
the aforesaid period
9 Issue of debt securities:
To receive credit of debt securities into the demat a/c within 2
working days of allotment
RESPONSIBILITIES
9 To offer comments, if any, on the draft OD available on the websites of
MB / Stock Exchange / SEBI
9 Read the OD, understand the risks properly and then make your
investment decision
9 Invest only after carefully analyzing the suitability in the context of your
financial goals and risk taking capacity
9 While filling up the application form:
To give complete information
To fill it legibly without any crossing / corrections / over writing
To ensure that the name(s) and signature(s) match with that of the
demat account and that they are in the same order
To furnish all the documents sought
To strike off the non applicable fields
To mention the application form number on the reverse of the draft /
cheque
To recheck the information provided including
1. 16 digit demat account number
2. PAN
3. Bank account details
Collect acknowledgement for your application from Syndicate
member
9 If using ASBA:
Use specified application form for ASBA
If applicant is different from account holder, ensure ASBA
application is signed by account holder and applicant
Submit the application forms to SCSB/Syndicate member within
closing date and specified closing time
Collect Transaction Registration Slip (TRS) / acknowledgement
from SCSB / Syndicate member
Collect revised TRS in case of revision of bids
9 Peruse reports issued by the Company on utilisation of issue proceeds
***
SECONDARY MARKETS
DOS
9 Take a holistic view of your financial goals and invest accordingly
9 Invest only after adequate research / analysis
9 Be aware that value of your investments are subject to ups and downs
of the market and do not offer guaranteed returns like bank deposits
9 Deal only with SEBI registered brokers / Depository Participant (DP)
this list is available on SEBI, Stock Exchange (SE) and
Depositories websites
9 Check and satisfy yourself about the credentials and experience of the
intermediary
9 Ensure you have PAN card and Bank account
9 Strike off all blank / irrelevant fields / clauses in the
agreement(s) executed
Registration of Know Your Customer (KYC)
9 Obtain Unique Client Code (UCC) from stock broker
9 Get all your trades executed only through your UCC
9 Insist that your demat a/c number is preprinted / pre stamped on the
Delivery Instruction Slips (DIS)
9 Be aware that an intermediary or its staff making a recommendation, is
required to disclose their interest/ position in that scrip
9 If you avail internet trading facility,
grant Power of Attorney (PoA) only for auto debit of funds /
securities for settlement obligation for investment / subscription
Opt for digital contract note
Ensure adequate infrastructure and safety measures
9 Make payments only
through A/c payee cheques / drafts / EFT
to the stock broker and not to the sub broker, dealing persons /
employees of broker / sub broker
9 Keep a record of all
instructions and transactions with broker / DP
correspondences of complaints against broker / DP
9 Ensure that contract note (physical or digital) is signed by an
authorized person
9 Keep track of your portfolio in your Demat A/c on a regular basis
9 In case of any dispute / difference / grievance, contact the compliance
officer of broker / DP
Be aware that all brokers/ DPs are required to have a dedicated
Email ID for registering your complaints
9 Be aware that investor complaints against brokers / DPs are displayed
on the websites of SE / Depositories
9 Approach SEBI, if your grievance is not resolved
9 Be aware that details of arbitration proceedings and penal actions
against brokers / DPs are displayed on the websites of SE /
Depositories
9 Freeze your demat a/c, if you are not using it regularly
DON’TS
8 Do not invest with borrowed money
8 Do not expect unrealistic / guaranteed returns
8 Do not be influenced by advertisement / advices / rumours /
unauthentic news promising unrealistic gains and windfall profits in
mass media
8 Do not be guided by astrological predictions on share prices and
market movements
8 Do not fall prey to market rumours / ‘hot tips’/ ‘opportunity knocks only
once’ kind of advice
8 Do not invest in scrips on sudden spurts in trading volumes / prices
without proper research
8 Do not be swayed by market sentiments
8 Do not invest on any explicit/ implicit promises made by anyone
8 Do not indulge in impulse investing
8 Do not participate in unauthorised and illegal trades outside the stock
exchange mechanism (dabba trading)
8 Do not give wrong / contradictory / incomplete information in the client
registration form
8 Do not execute PoA in favour of employee / representative of broker /
DP
8 Do not reveal your trading / demat account passwords to any body
8 Do not allow others to trade in your account
8 Do not trade on anybody else’s account
8 Do not pay money to anyone to trade on your behalf for assured
returns
8 Do not entrust management of your money / securities with broker /
sub broker
8 Do not sign blank forms (account opening forms/ DIS / Demat Request
Form (DRF)
8 Do not engage in practices that distort demand / prices artificially
RIGHTS
9 To receive copies of all documents of client registration including PoA,
if any
9 To get the applicable brokerage rates / tariff / charge structure in writing
from your broker / DP
9 To receive the best price prevailing at the time of trade for transactions
executed through stock exchange
9 To receive contract note for all your transactions within 24 hours
9 To receive payment / deliveries within three days of the transaction
9 To refuse granting PoA in favour of the broker / DP
9 To revoke the PoA granted to broker / DP at any time and have your
revocation request date stamped
9 To file complaint with Exchange / Depository for any dispute against
broker / DP
9 To file for arbitration, available at SE / Depository, against broker / DP
RESPONSIBILITIES
9 To invest your hard earned money only with sufficient knowledge and
analysis
9 Invest only after carefully analyzing the suitability in the context of your
financial goals and risk taking capacity
9 Peruse the extensive disclosures on listed companies available on SE
website(s)
9 Read and understand the client agreement before signing it
9 If you choose to grant PoA in favour of broker / DP, read and
understand its contents before signing
9 Give correct and full details at the time of registration and update it
regularly
9 Fully understand the contents of Risk Disclosure Document before
trading
9 Avail nomination for your demat account without fail
9 Ascertain the face value of the share before investing
9 Give clear, unambiguous and timely instructions to your broker / DP
9 Verify all details in contract note, immediately upon receipt
9 Crosscheck details of your trade(s) on the exchange website
9 Bring any discrepancy to the notice of broker / DP immediately.
9 Ensure timely pay-in of shares and monies
9 Scrutinize minutely both the transaction and the holding statements
from DP
9 Handle DIS book issued by DP’s with the same care as a Cheque book
9 Inform the DP in writing incase of loss of DIS book
***
SECURITIES HOLDERS
(Equity Shares, Debentures, Bonds)
DOS
9 Avail nomination for all your investments without fail
9 Convert your physical certificates in to demat form by opening demat a/c
9 Provide your PAN card details in case of transfer / transmission of shares
in physical form
9 Keep track of your investments on regular basis
9 Be alert to any public announcements on the shares of the companies that
you have invested
9 Be aware that an intermediary or its staff making a recommendation, is
required to disclose their interest/ position in that scrip
9 Read the Annual Report and enclosed explanatory statements, if any,
before attending General Meetings
9 In case of any grievance, contact the compliance officer of the company /
Debenture Trustee (DT)
Be aware that listed companies, Registrar and Share Transfer
Agents (RTA) and DTs are required to have a dedicated Email ID
for registering your complaints
9 Approach SEBI, if grievance is not redressed by the Company / DT
9 Be aware that investor complaints against listed companies are displayed
on the website(s) of SE
9 Be aware that the details of disposal of arbitration proceedings are
displayed on the website(s) of SE
DON’TS
8 Do not invest with borrowed money
8 Do not expect unrealistic / guaranteed returns
8 Do not be influenced by advertisement / advices / rumours / unauthentic
news promising unrealistic gains and windfall profits in mass media
8 Do not be guided by astrological predictions on share prices and market
movements
8 Do not fall prey to market rumours / ‘hot tips’/ ‘opportunity knocks only
once’ kind of advice
8 Do not be swayed by market sentiments
8 Do not invest on any explicit / implicit promises made by anyone
8 Do not indulge in impulse investing
8 Do not associate in any way with grey market
RIGHTS
RESPONSIBILITIES
9 To remain informed and vigilant about your investments
9 To peruse disclosures made by the company on SE website(s) including:
Annual reports
Details of the board meetings
Recommendation or declaration of dividend
Particulars of increase / issue / alterations of share capital
Financial results along with details of credit rating, asset cover
available, debt equity ratio
Revision of credit rating
Statement of
1. shareholding pattern
2. details of locked-in shares
3. details of shares pledged by promoter group
4. details of depository receipts (DR)
5. variation between the utilisation of proceeds and profitability
projected in the Offer Document against the actual
6. compliance report on Corporate Governance
Details of shareholding and acquisition of company’s shares by
1. promoters / persons in control of the company, including
those acting in concert
2. directors and top management including their dependents
3. persons holding more than 5%
Information having bearing on performance / operations of the
company and or affecting the interests of security holders
Corporate actions like Mergers, Demergers, Splits and Bonus issue
Scheme / petition proposed to be filed before any court or tribunal
Information on buyback, substantial acquisition or delisting offers
Information on maintenance of 100% asset cover for listed debt
securities
Information on default / expected default in payment of interest /
redemption of debt securities or failure to create charge on assets
Alterations in the terms regarding redemption / cancellation /
retirement of any security
9 Periodically verify the changes in rating of debt securities, available on
website(s) of credit rating agencies
***
CORPORATE RESTRUCTURING
(Substantial acquisition, Buyback and Delisting of shares)
DOS
General:
9 Contact the Merchant Banker (MB), if you do not receive the LoO;
alternatively, download LoF from the website(s) of Registrar and Share
Transfer Agent (RSTA) / Stock Exchange / SEBI
9 Compare the Offer price with the market price, book value, future
prospects of the company etc. before deciding on whether or not to tender
your shares
If you decide to participate in the Offer:
9 Fill the application in BLOCK LETTERS in English
9 Obtain acknowledgement for submission of application form, in case of
hand delivery
9 Be aware that in case of over subscription, the shares you tender shall
be accepted on a pro rata basis
9 In case of any doubt / grievance, contact the Compliance Officer / MB
named in the LoO
Be aware that listed companies, RSTA and MBs are required to
have a dedicated Email ID for registering your complaints
9 Approach SEBI, if your grievance is not resolved
9 Be aware of the tax implication, if any, of participating in the Offer, as it
is an ‘off market’ transaction
9 Peruse the post issue advertisements issued by the acquirer / company
to know the details of acceptance of the offer
9 Contact the Registrar of Companies in case you feel that provisions of
the Companies Act have been violated
DON’TS
8 Do not wait for the last date of the closure of the Offer for tendering your
acceptance
8 Do not fill in the details of the buyer / transferee in the transfer deed for
physical shares tendered
8 Do not submit multiple applications
8 Do not mutilate the application form
8 Do not give wrong / contradictory / incomplete information in the
application form
RIGHTS
9 To vote on the special resolution in the meeting calling for buyback or
delisting of shares
9 Participate and vote in general meetings either personally or through proxy
9 To receive the LoO, if you are a shareholder of the company on the
“specified date” disclosed in the public announcement
9 To participate or not to participate in the Offer
9 In case of non receipt of LoO, to participate in the Offer by making an
application on plain paper giving the necessary details (available on SEBI
and exchange websites)
9 To withdraw your shares tendered in the offer
up to 3 working days prior to the closing of the Offer
by making an application in the Form of Withdrawal (available in the
LoO) or on plain paper giving the necessary details
9 To receive the consideration for the shares tendered / receive back the
shares tendered, in case of partial acceptance / non acceptance, within
15 days from date of closure of substantial acquisition offer
10 working days from date of closure of delisting offer
22 days from date of closure of buy back offer
Offer for delisting of shares:
9 To tender your shares at any price above the floor price as disclosed in
the Offer
9 To exit from the company within one year by selling your shares to the
acquirer within one year of the delisting, in case you did not participate
in the Offer
9 To withdraw or revise your bids upwards up to one day prior to the bid
closing date of the Offer
RESPONSIBILITIES
9 To read carefully the special resolution, including the explanation and
justification, on the proposed buy back / delisting, in detail and then vote
for or against it
9 To read the contents in the LoO carefully before deciding whether or not to
participate in the offer
If you decide to participate in the Offer:
9 To read and carefully follow the instructions in the LoO for making the
application for tendering of shares
9 While filling up the application form:
To give complete information, including bank account details
To fill it legibly without any crossing / corrections / over writings
To ensure that the name(s) and signature(s) match with that of the
demat account and that they are in the same order
To furnish all the documents sought
To strike off the non applicable fields
9 Ensure that signature(s) on Form of Acceptance, Transfer Deed /
Depository Instruction Slip and Form of Withdrawal, if applicable, are
affixed; the signature(s) have to match those available with the
company and have to be in same order
Shares tendered in demat mode:
Ensure that your shares are credited to the Special Depository
Account mentioned in the LoO, before closure of the Offer
To submit along with the application form, the acknowledgment slip
of the transfer of your shares to the Special Depository Account;
mere transfer of shares to this account is not sufficient to participate
in the Offer
Shares tendered in physical mode:
To duly execute the transfer deed and submit it along with the
application form
9 Ensure that your application reaches the collection centre
at the correct address through the mode (post / courier / hand
delivery / ordinary post etc.) specified in the LoO
before the closure of the Offer
9 In case of withdrawal, submit the application at any specified collection
center up to 3 working days prior to the closing of the Offer
***
MUTUAL FUNDS
DOS
9 Take a holistic view of your financial goals and invest accordingly
9 Be aware that value of your investments are subject to ups and downs of
the market and do not offer guaranteed returns like bank deposits
9 Ensure you have PAN card and Bank account
9 Strike off all blank / irrelevant fields / clauses in Know Your Customer
(KYC) registration form
9 In the Scheme Information Document (SID) / Key Information
Memorandum (KIM), carefully note the following
Investment objective
Asset allocation
Risk factors
Performance of the scheme relative to benchmark
Investment strategy
Fund manager and his education, experience and track record
Load structure
Rights of unit holders (in the Statement of Additional Information -
SAI)
Penalties, pending litigations, findings of inspections or
investigations, etc
How this scheme is different from other schemes of the mutual fund
9 Peruse the SID / KIM available on the websites of SEBI and Mutual Fund
(MF)
9 Check if the asset allocation as stated in the SID / KIM is in line with the
investment objective of the scheme
9 Keep in mind that the past performance of a scheme is not indicative of its
future performance
9 Be aware that a New Fund Offer (NFO) with an issue price of ` 10 is not
necessarily a better bargain than existing schemes
9 Be aware that a scheme with a lower Net Asset Value (NAV) is not
necessarily a better purchase than a scheme with a higher NAV.
9 Note that the NAV of a scheme is subject to change depending upon
market conditions
9 Be aware that an intermediary or its staff making a recommendation, is
required to disclose their interest/ position in that scheme
9 Use Application Supported by Blocked Amount (ASBA) for NFO - the
smart choice
9 If you choose to avail the services of MF distributor,
ask for the list of fees and charges applicable, before investing
pay him / her according to the services rendered and advice offered
9 Make payments only
through A/c payee cheques / drafts / EFT
to the mutual fund scheme and not to distributor / agent
9 Verify that the exit load charged to you is as per the SID / KIM
9 In case of change in address, update your KYC immediately
9 Apply to the MF) in case of loss / theft / damage of statement of units held
9 Incase of any doubt / grievance, contact the compliance officer / investor
relations officer mentioned in the SID
Be aware that Mutual Funds and Registrar and Share Transfer Agent
(RSTA) are required to have a dedicated Email ID for registering your
complaints
9 Approach SEBI, if your grievance is not resolved
9 Be aware that investor complaints against MFs are displayed on the
website of MF and Association of Mutual Funds of India (AMFI)
9 Keep track of websites of SEBI, AMFI and the MFs in which you have
invested
DON’TS
8 Do not invest with borrowed money
8 Do not expect unrealistic / guaranteed returns
8 Do not invest without reading the SID / KIM
8 Do not be influenced by advertisement / advices / rumours / unauthentic
news promising unrealistic gains and windfall profits in mass media
8 Do not get carried away by catchy advertisements without reading the fine
print
8 Do not be guided by astrological predictions for your investments
8 Do not fall prey to market rumours / ‘hot tips’/ ‘opportunity knocks only
once’ kind of advice
8 Do not be swayed by market sentiments
8 Do not invest on any explicit / implicit promises made by anyone
8 Do not invest in any scheme just because of incentives / gifts /
inducements etc. offered
8 Do not indulge in impulse investing
8 Do not give wrong / contradictory / incomplete information in the
application form
8 Do not mutilate the application form
RIGHTS
9 To receive the SAI, SID or KIM from the mutual fund upon request
9 To enter into any scheme without entry load
9 To invest up to Rs. 50,000/- per year in micro systematic investment plan
without PAN
9 To receive dividends / interest / redemption proceeds though ECS / NEFT
/ RTGS, wherever such facility is available
9 To receive
refund within 5 working days of closure of NFO
dividend within 30 days of its declaration
redemption proceeds within 10 working days of request
9 To receive interest @ 15% p.a. for delay beyond aforesaid period for
dividend and redemption proceeds
9 To receive statement of account within 5 working days from the
date of closure of initial subscription list (NFO)
date of request in case of open ended scheme
9 To receive credit of units in demat account,
within 5 working days from the date of closure of initial subscription
list (NFO)
within 2 working days of requesting AMC (in case of closed ended
schemes)
9 To have the NAV of the scheme(s) in at least two daily newspapers and on
the websites of the concerned MF and AMFI
9 To receive bonus units
9 To receive within 1 month, from the close of each half year, complete
statement of a scheme’s portfolio
either directly or
through an advertisement in a national English daily and the
regional language newspaper where the AMC is head quartered
9 To change the distributor without obtaining an NOC from the existing
distributor
9 To receive within 4 months, the scheme wise
annual report of a mutual fund or
an abridged summary thereof with an option to inspect the full
annual report and take copies at the Head Office of the MF
9 To be informed about any proposed change
in the fundamental attributes of a scheme
in ownership pattern of the AMC
and be given an option to exit at the prevailing net asset value without any
exit load
9 To collectively (i.e. by at least 75% unit holders of the scheme) pass a
resolution to
terminate the appointment of the AMC
wind up a scheme
9 Not to be fed with misleading and / or inaccurate advertisements
9 Not to be charged exit load on any units issued
as bonus
for reinvestment of dividend
9 Not to be charged a differential exit load based upon amount of
subscription
RESPONSIBILITIES
9 Read scheme related documents carefully, understand the risks properly,
before investing
SAI - statutory information on the mutual fund
SID - major information related to a scheme and
KIM - abridged version of the SID
9 Invest only after carefully analyzing the suitability in the context of your
financial goals and risk taking capacity
9 To invest directly with AMCs or through AMFI registered distributor / agent,
list of which is available on AMFI website
9 To read and understand carefully the terms of the Power of Attorney, if
any, given to the distributor
9 Application form:
Fill the application in BLOCK LETTERS
Duly fill up the application form and give complete information,
including bank account details, legibly without any crossing /
corrections / over writing
Furnish all the documents sought in the application form
Mention number of application form on the reverse of the draft /
cheque
Strike off all blank / irrelevant fields
9 Avail nomination for all your investments without fail
9 Consider the effects of fee charged by the mutual fund and taxes before
investing
9 Keep track of the NAV and portfolio of the scheme(s) in which you have
invested, on a regular basis
9 To remain informed and vigilant about your investments
***