Read the Prospectus/ Abridged Prospectus and pay special attention to:
Outstanding litigations and defaults, if any
Financials of the issuer
Object of the issue
Background of the promoters
Instructions for making an application.
In case of any doubts/problems, contact the compliance officer named in the offer document.
In case you do not receive, within due period, the physical certificates/ credit to demat account or refund of application money, lodge a complaint with the compliance officer of the issuer company and with the post-issue lead manager listed in the offer document.
Don’t fall prey to market rumours.
Don’t go by any implicit/explicit promise made by the issuer or any one else.
Don’t invest based on the prevailing bull run of the market index or of scrips of other companies in the same industry or scrip of the issuer company/group companies.
Don’t bank upon the price of the shares of the issuer company to necessarily go up.
Transact only through SEBI-recognised stock exchanges.
Deal only through SEBI-registered intermediaries.
Complete all required formalities for opening an account with the broker (Client registration, Client agreement forms etc).
Ask for and sign the “Know Your Client” Agreement.
Read and properly understand the risks associated with investing in securities before undertaking any transactions.
Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making your investment decision.
Ask all relevant questions and clear your doubts with your broker before transacting.
Invest based on sound reasoning and fundamentals of the company after taking into account all publicly available information.
Give clear and unambiguous instructions to your broker/sub-broker/ depository participant.
Insist on a contract note for each of your transactions and verify all details in contract note, immediately on receipt. If in doubt, crosscheck details of your trade with details as available on the exchange website.
Scrutinize minutely both the transaction and the holding statements that you receive from your Depository Participant.
Keep copies of all investment documentation.
Handle Delivery Instruction Slips (DIS) Book issued by DPs carefully. Insist that the DIS numbers are pre-printed and your account number (Client ID) is pre stamped.
In case you are not transacting frequently, make use of the freezing facility provided for your demat account.
Pay the required margins in the prescribed time.
Deliver the shares/depository slip in case of sale and pay the money in case of purchase within the prescribed time.
Participate and vote in general meetings either personally or through proxy.
Don’t undertake off-market transactions in securities.
Don’t deal with unregistered intermediaries.
Don’t fall prey to promises of unrealistic returns.
Don’t invest on the basis of hearsays and rumors.
Don’t forget to take account of the potential risks that are involved in the investment.
Don’t be influenced into buying into fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or favourable articles/stories in the media.
Don’t follow the herd or play on momentum.
Don’t be misled by hot tips.
Don’t try to time the market.
Don’t hesitate to approach the proper authorities for redressal of your doubts/grievances.
Don’t leave signed blank Delivery Instruction Slips of your demat account lying around.
Don’t sign blank Delivery Instruction Slips(DIS) and keep them with the Depository Participant (DP) or with the broker to save efforts when required.
Read the special resolution regarding the proposed buyback in detail and then vote for it.
Compare the price offered in the buyback with the market price during last few months as also with the company’s Earning per Share, Book Value etc. and then determine whether the price offered is reasonable.
Read the instructions for making the application for tendering of shares carefully.
Ensure that your application reaches the collection centre within the prescribed time.
If you don’t get the letter of offer within a reasonable period, contact the concerned Merchant Banker.
Mention all details as required in the letter of offer legibly.
Furnish all the documents asked for in the letter of offer.
Send application through the mode (post/courier/hand delivery/ ordinary post etc.) specified in the letter of offer.
Contact Merchant Banker if no response is received from the company regarding consideration for tendered shares within the stipulated time.
Contact Compliance Officer mentioned in the letter of offer in case of any grievance against the company.
Contact the Registrar of Companies in case you feel that provisions of the Companies Act have been violated.
Contact the Merchant Banker in case of any grievance against the procedure followed in the buyback.
Don’t submit multiple applications.
Don’t forget to fill up the application legibly.
Don’t mutilate the application form.
Don’t cross/ cut in the application form.
Don’t send the application form to a wrong address.
Don’t send the application form after the close of offer.
Don’t forget to give complete information in the application form.
Don’t forget to sign the application form.
Don’t give wrong/ contradictory information on the application form.
Ensure that you are aware of all competitive offers and revision of offer before deciding on accepting the offer
Refer to national dailies/ SEBI website for details of competitive offers or revisions of offers.
Note that the offer is subject to statutory approvals, if any, mentioned in the letter of offer
Check whether the offer will result in delisting of the company.
In case of demateralised equity shares, ensure credit is received to the Special Depository Account before the closure of the Offer.
Carefully note the timings/days for hand delivery of the documents mentioned in the letter of offer.
Wait till the last date for Offer Revision (i.e. 7 working days prior to date of closing of offer) before tendering your acceptance.
Submit the Form of Withdrawal accompanying the letter of offer at any specified collection center up to 3 working days before date of closing of the offer in case you want to withdraw the shares tendered.
Ensure that signatures on the Form of Acceptance, Transfer Deed, Depository Instruction and Form of Withdrawal are same and in the same order as those lodged with the company.
In case of non receipt of the Offer Document, you can tender or withdraw from the Offer by making an application on a plain paper giving the necessary details
Don’t wait for the last date for the closure of the offer for tendering your acceptance.
Don’t fill in the details of the buyer/transferee in the transfer deed to be sent.
Don’t file an incomplete application form/invalid documents.