Your stockbroker needs regular monitoring

A recent Sebi circular makes it compulsory for brokers to maintain evidence of orders placed by clients

Losing money in a stock market trade isn’t uncommon for retail investors. Many get greedy and end up making significant losses. But, there are also many instances when unauthorised trading by brokers on behalf of clients has caused them severe loss. 

A large proportion of the complaints the markets regulator, Securities and Exchange Board of India (Sebi), receives relate to this issue. Recently, it issued a circular aimed at curbing this. 

Maintain proof of order: Sebi’s circular of September 26 requires all brokers in the equity, equity derivative and currency derivative markets to execute trades on behalf of clients only