Responsibilities of Investors

Know your duties to maintain ethical, transparent, and responsible investing practices.

Your Responsibilities at a Glance

BEFORE ACCOUNT OPENING DURING TRADING/INVESTING RISK MANAGEMENT COMPLIANCE RESPONSIBILITIES INFORMATION MANAGEMENT ACCOUNT MAINTENANCE DISPUTE RESOLUTION ETHICAL TRADING PRACTICES DIGITAL TRADING RESPONSIBILITY . CONTINUOUS LEARNING

1. BEFORE ACCOUNT OPENING

1.1. Research and Due Diligence

Research thoroughly about Sapphire Broking before opening an account
Verify Sapphire Broking's registration status with SEBI and relevant exchanges
Check Sapphire Broking's track record, service quality, and reputation
Review client testimonials and feedback if available

1.2. Documentation and KYC

Provide complete, accurate, and up-to-date information during the KYC process
Submit genuine and valid documents for identity and address proof
Disclose all required financial information honestly
Ensure all signatures on forms match your specimen signature
Read all account opening documents carefully before signing

1.3. Understanding Documents

Read and understand the Rights and Obligations document
Carefully review the Risk Disclosure Document to understand market risks
Understand the fee structure, brokerage, and other charges
Familiarize yourself with the tariff/charge sheet provided by Sapphire Broking
Clarify any doubts before signing any document

1.4. Nomination

Provide nomination details for your trading and demat accounts
Update nomination information whenever necessary
Understand the process of claim settlement for nominees

2. DURING TRADING/INVESTING

2.1. Order Placement

Place orders with clear and specific instructions
Verify that your orders are placed as per your instructions
Confirm order execution through the trading platform or with your broker
Keep record of all orders placed and their status
Be aware of the trading hours and applicable rules for different market segments

2.2. Financial Discipline

Ensure sufficient funds/securities in your account before placing orders
Maintain required margins for derivative and other leveraged trades
Pay all dues and settlement obligations on time
Track your trading positions and overall exposure regularly
Avoid trading beyond your financial capacity

2.3. Contract Notes and Statements

Verify contract notes received for accuracy of trades, brokerage, and other charges
Check that contract notes are received within 24 hours of trade execution
Review your statement of accounts regularly
Reconcile your personal records with official statements
Report any discrepancies immediately to Sapphire Broking

2.4. Security Practices

Keep your login credentials, passwords, and PINs confidential
Do not share OTPs received on your mobile/email with anyone
Change your passwords periodically
Use secure networks when accessing your trading account
Log out from your trading account after each session

2.5. Monitoring

Regularly monitor your investments and trading positions
Track corporate actions (dividends, bonus, splits, etc.) that affect your holdings
Keep track of important market announcements and news
Monitor account statements for any unauthorized transactions
Verify SMS/email alerts received from exchanges against your trading activities

3. RISK MANAGEMENT

3.1. Understanding Risk

Understand that all investments carry varying degrees of risk
Accept that past performance is not indicative of future results
Recognize that leveraged trading amplifies both profits and losses
Be aware of the specific risks associated with different market segments
Understand that market volatility can lead to significant price movements

3.2. Personal Risk Assessment

Assess your risk tolerance before making investment decisions
Invest according to your financial goals and time horizon
Consider your financial situation when determining investment amount
Diversify your investments to manage risk
Have realistic expectations about investment returns

3.3. Managing Trading Risks

Use stop-loss orders to limit potential losses
Avoid over-leveraging your positions
Do not invest based on tips, rumors, or unsolicited advice
Be cautious with illiquid securities and penny stocks
Exercise special caution when trading in derivative products

3.4. Emergency Preparedness

Maintain an emergency fund separate from your trading capital
Have contingency plans for market disruptions or personal emergencies
Be prepared for margin calls during volatile market conditions
Know the procedure to close positions quickly if needed
Understand circuit breakers and trading halts in the market

4. COMPLIANCE RESPONSIBILITIES

4.1. Regulatory Compliance

Adhere to all exchange rules and SEBI regulations
Respect trading limits and position limits set by regulators
Avoid engaging in manipulative or fraudulent trading practices
Do not participate in synchronized, circular, or artificial transactions
Report any requests to engage in market manipulation

4.2. Tax Compliance

Maintain proper records of all your trades for tax purposes
Report all investment income and capital gains in your tax returns
Pay applicable securities transaction tax, capital gains tax, and other taxes
Keep track of tax implications of different investment products
Consult a tax professional if needed for complex tax matters

4.3. Legal Obligations

Honor all contractual obligations with Sapphire Broking
Fulfill all payment and delivery commitments on time
Comply with margin requirements and mark-to-market obligations
Adhere to the terms and conditions accepted during account opening
Follow proper procedures for grievance redressal

5. INFORMATION MANAGEMENT

5.1. Keeping Records

Maintain copies of all account opening documents
Keep records of all contract notes and statements
Save confirmation of fund transfers and securities transfers
Document all communications regarding disputes or issues
Preserve evidence of all transactions and claims

5.2. Updating Information

Promptly update any changes in your personal information
Inform Sapphire Broking about changes in your contact details
Update your bank account details whenever there's a change
Renew KYC documents before their expiry
Inform about material changes in your financial status

5.3. Staying Informed

Keep yourself updated about market trends and developments
Read circulars and notices issued by exchanges and regulators
Follow news that might impact your investments
Understand changes in rules, regulations, and trading procedures
Participate in investor education programs when possible

6. ACCOUNT MAINTENANCE

6.1. Regular Review

Periodically review your investment portfolio and trading strategy
Evaluate the performance of your investments against your goals
Reassess your risk tolerance and adjust your portfolio if needed
Review the services provided by Sapphire Broking
Check if brokerage and other charges are as per the agreed terms

6.2. Account Activity

Ensure your trading account remains active as per regulatory requirements
Be aware of the consequences of an inactive/dormant account
Complete periodic KYC updation as required by regulations
Regularly access your trading and demat accounts
Conduct periodic transactions to maintain active status if desired

6.3. Careful Delegation

If authorizing someone else to operate your account, do so formally
Set clear boundaries and limitations when delegating authority
Regularly monitor account activity even when delegated
Review and renew authorizations periodically
Revoke authorizations when no longer needed

7. DISPUTE RESOLUTION

7.1. Timely Reporting

Report discrepancies in your account promptly
Raise concerns about unauthorized transactions immediately
File formal complaints within the prescribed timeframes
Provide all relevant details when reporting an issue
Keep track of complaint reference numbers

7.2. Proper Documentation

Support your complaints with proper documentation
Provide evidence to substantiate your claims
Submit all relevant information for effective resolution
Keep copies of all communication related to disputes
Maintain a chronological record of events

7.3. Following Procedure

Follow the proper grievance redressal mechanism
Escalate issues as per the defined escalation matrix
Exhaust internal resolution mechanisms before approaching regulators
Respond promptly to requests for additional information
Participate constructively in the resolution process

8. ETHICAL TRADING PRACTICES

8.1. Market Integrity

Do not engage in price manipulation or creating artificial volumes
Avoid spreading rumors or false information about securities
Do not participate in front-running or insider trading
Report suspicious market activities to appropriate authorities
Trade with integrity and honesty

8.2. Responsible Trading

Place orders that you intend to honor
Do not place and cancel orders repeatedly without execution
Avoid disruptive trading practices
Do not attempt to game the trading system
Consider the impact of your trades on market stability

8.3. Ethical Conduct

Deal honestly with Sapphire Broking and other market participants
Honor your contractual and financial obligations
Do not misrepresent facts or circumstances
Respect the confidentiality of market-sensitive information
Encourage fair and transparent market practices

9. DIGITAL TRADING RESPONSIBILITY

9.1. System Requirements

Ensure your computer/device meets the technical requirements for trading platforms
Maintain updated operating systems and browsers
Use licensed and updated antivirus software
Ensure stable internet connectivity for uninterrupted trading
Have backup systems ready in case of primary system failure

9.2. Digital Security

Trade only through official applications provided by Sapphire Broking
Verify the authenticity of trading apps before downloading
Do not access trading accounts from shared or public computers
Be alert to phishing attempts and fraudulent websites
Report suspicious emails or messages claiming to be from Sapphire Broking

9.3. Responsible Digital Behavior

Do not automate trading without proper understanding of the risks
Use algorithms and trading bots responsibly if permitted
Understand the implications of high-frequency trading
Be cautious when using third-party trading tools
Verify the legitimacy of investment-related apps and websites

10. CONTINUOUS LEARNING

10.1. Market Education

Continuously educate yourself about financial markets
Understand different investment products and their features
Learn about technical and fundamental analysis
Stay updated with trading strategies and risk management techniques
Participate in webinars and workshops offered by Sapphire Broking

10.2. Financial Literacy

Improve your understanding of personal finance
Learn about the time value of money and compounding
Understand the impact of inflation on investments
Develop skills to read and interpret financial statements
Build knowledge about portfolio management and asset allocation

10.3. Regulatory Awareness

Keep abreast of regulatory changes affecting investments
Understand the implications of new rules and regulations
Follow updates from SEBI, exchanges, and other regulatory bodies
Be aware of investor protection mechanisms
Know your rights and responsibilities as an investor

Conclusion

Remember, being a responsible investor not only protects your own interests but also contributes to the overall integrity and efficiency of the securities market. Sapphire Broking encourages all investors to adopt these responsible practices for a safer and more rewarding investment journey.

For any clarification or assistance regarding these responsibilities, please contact:

Sapphire Broking

Email: support@sapphirebroking.com
Phone: [Customer Support Number]
Address: [Sapphire Broking Address]

Educational Resources

To help you fulfill your responsibilities as an investor, Sapphire Broking offers the following educational resources:

Market Education

Learn about market fundamentals, trading strategies, and investment approaches.

Access resources →

Risk Management

Discover strategies to protect your investments and manage trading risks effectively.

Access resources →

Regulatory Compliance

Stay updated with regulatory requirements and compliance obligations for investors.

Access resources →

Last Updated: April 1, 2025