Rules and Regulations:

The SCRA, the SEBI and the Depositories Act, have all been amended by the
Government . Under the SEBI Act and the Depositories Act, SEBI has drafted
regulations for the registration and control of all market intermediaries, as well as the
prevention of unfair trade practices , insider trading, and other illegal activities.
The Government and SEBI issue notices, guidelines, and circulars that market
participants must obey under these Acts. SROs, like stock exchanges, have developed
their own set of rules and regulations.
There are eight important SEBI Rules and Regulations, they are:
1. Registration
2. Code of Conduct
3. Agreement with Clients
4. Proper Books of Accounts and Records, etc.
5. General Responsibilities of an Underwriter
6. Appointment of Compliance officer
7. Board’s Right to Inspect
8. Liability in Case of Default

Investors Awareness Program:

Stock exchanges hold Investor Awareness Programs on a regular basis to educate and
raise awareness among investors about how the capital market works, especially how
stock exchanges operate. These services have been held in almost every state
throughout the country.

The Investor Awareness Program covers wide range of topics, including Investment
Instruments, Portfolio Approach, Mutual Funds, Tax Provisions, Trading, Clearing
and Settlement, Rolling Settlement, Investors Protection Fund, Trade Guarantee Fund,
Dematerialization of Shares, Investors Grievance Redressal System Available with
SEBI, BSE, and Company Law Board, and information on Sentiment Analysis.

Safeguards for Investors:

These are some of the safeguards that investors must adhere to before investing in the
stock market-
1. While choosing a broker/ sub-broker: it only deals with SEBI registered broke or
sub-broker after conducting due diligence. Details on the list of Brokers can be
found in the Exchanges Members list and on the website.
2. While entering into a Contract:
a) Fill out a client registration form with the names of the broker and the sub-broker.
b) Sign a client agreement with a broker or sub-broker. To register as a client of a
BSE Trading Member, all investors must sign this agreement, until entering into
an agreement, the client should check the following:
i. Before signing the agreement on a genuine stamp paper of the required value,
carefully read and recognise the terms and conditions.
ii. For his record, the Client should obtain a signed copy of all documents.
3. While Transacting:
a) Specify the Exchange from which your trade will be conducted to the Broker/
Sub-Broker, and hold a separate account for each Exchange.
b) Within 24 hours of the Trades execution, receive a legitimate Contract Notice
from a Trading Member of the Exchange.