Money is the most important thing in this mortal world. All of us wants our money to in safe hands. That's why we keep our money in banks. And we also invest in share markets. For this we need an account (demat account) with brokerage firm.
Many scams have taken place in the recent past in which big brokerage firms were involved. In this post I will tell you how to check genuine brokerage firms.
1. Go to this link of SEBI to find out the registered stock brokers.
http://www.sebi.gov.in/sebiweb/home/detail/4980/new/Registered-Stock-Brokers-in-equity-segment
2. This is important because there were 100's of brokers in India who have been blacklisted.Unicon securities, NS Broking, Kalyan securities and many more. Read the following circular from NSE to learn more
https://www1.nseindia.com/content/circulars/INVG31764.pdf.
If I will write all of them then this whole page will be filled up. Some of them cheated the clients, some of them have done tax frauds etc. And the most important thing general public could not get back their money from these brokerage firms. Means lakhs of people lost crores of money. And the most serious problem is that these companies were also SEBI registered because without registration a brokerage firm cannot work. Thus you are not safe even if you are opening an account with registed stock brokers as listed in point 1.
3. How these frauds are done: Whenever you open an account with brokerage firm a Unique client code(UCC) is linked to your PAN card. For more details go to this link:
https://www.nseindia.com/invest/content/inve_rights_ob.htm
In the above link you will also find your rights as an investor.
This UCC number is just like your bank account number. Read these SEBI guidelines in the following link:
http://www.sebi.gov.in/circulars/2001/CIR392001.html
UCC is 10 charecters length.
UNCON securities which is one of the blacklisted brokerage firms sold off all the shares of the shareholders in their accounts and took away all their money. It was a scam of 100 crore rupees. This was possible only because he got all the shares of the shareholders linked with his own UCC number. Means the cleints were not alotted their UCC number or they we assigned some false UCC number.
4. The major problem is that most of the brokerage firms gives you a false number when you ask them for UCC number from their helpdesk. And they also send forged mails from NSE as there is a directive from NSE that all the clients should receive mails about their daily transactions. But there is a good new you can verify your UCC number.
5. Steps to verify your UCC number.
Go to the following link:
https://www.nseindia.com/tv
The following page will be displayed:
In the bottom of the page sign up button is visible click that. Now you will be redirected to the following page:
Just fill this form. Put the exact PAN no because your PAN no is linked to your UCC no. Now click submit.
Now the following page is displayed:
In client code enter your UCC and in Member name write the name of the broker you are registered to eg. ICICI securities ltd, HDFC securities ltd. Now click submit. If your UCC number is correct then it will be accepted otherwise a message will come that your PAN code, client code and member name combination is not valid. If this happens then you may be in trouble any time. If you have UCC number then NSE will pay you 15 lacks in case of any loss of trade related data.
Many of the brokerage firms in India donot give proper UCC number to their customers. I have an account with the most popular discounted brokerage firm in India. They could not provide me my authentic UCC number. So I decided to to close my account with them. When I asked them for UCC number they got panicked and the same day they send me a lot of mails pretending as mails from nse transactions. DP number is not UCC number. Your user-id or client -id provided by brokerage firm is not UCC number. I have an account with ICICI securities ltd. Their UCC number is authentic. All the prestigious banks like SBI, ICICI, HDFC will provide you with UCC number. If you donot believe me just check the links I have referred in this page. These links are the official links of NSE india and SEBI. People are running after cheap brokerage firms. But they donot understand the risks.
How these fraud brokerage firms create my tax statements?
These brokerage firms belongs to influential people who have good links. So they manipulate the data according to their need. eg all of us need a demat account for share trading but the people who have lot of black money they donot have a demat account but still they trade in share market. In fact most of the money in share market is black money.
The banks charge very high brokerage what to do?
They have cheap brokerage plans which you can buy at a very reasonable price. But they will not be as cheap as some other brokerage service providers. But atleast your money is in safe hands. Go for those brokers whose banks are interlinked to the demat account. It is safe.
Many scams have taken place in the recent past in which big brokerage firms were involved. In this post I will tell you how to check genuine brokerage firms.
1. Go to this link of SEBI to find out the registered stock brokers.
http://www.sebi.gov.in/sebiweb/home/detail/4980/new/Registered-Stock-Brokers-in-equity-segment
2. This is important because there were 100's of brokers in India who have been blacklisted.Unicon securities, NS Broking, Kalyan securities and many more. Read the following circular from NSE to learn more
https://www1.nseindia.com/content/circulars/INVG31764.pdf.
If I will write all of them then this whole page will be filled up. Some of them cheated the clients, some of them have done tax frauds etc. And the most important thing general public could not get back their money from these brokerage firms. Means lakhs of people lost crores of money. And the most serious problem is that these companies were also SEBI registered because without registration a brokerage firm cannot work. Thus you are not safe even if you are opening an account with registed stock brokers as listed in point 1.
3. How these frauds are done: Whenever you open an account with brokerage firm a Unique client code(UCC) is linked to your PAN card. For more details go to this link:
https://www.nseindia.com/invest/content/inve_rights_ob.htm
In the above link you will also find your rights as an investor.
This UCC number is just like your bank account number. Read these SEBI guidelines in the following link:
http://www.sebi.gov.in/circulars/2001/CIR392001.html
UCC is 10 charecters length.
UNCON securities which is one of the blacklisted brokerage firms sold off all the shares of the shareholders in their accounts and took away all their money. It was a scam of 100 crore rupees. This was possible only because he got all the shares of the shareholders linked with his own UCC number. Means the cleints were not alotted their UCC number or they we assigned some false UCC number.
4. The major problem is that most of the brokerage firms gives you a false number when you ask them for UCC number from their helpdesk. And they also send forged mails from NSE as there is a directive from NSE that all the clients should receive mails about their daily transactions. But there is a good new you can verify your UCC number.
5. Steps to verify your UCC number.
Go to the following link:
https://www.nseindia.com/tv
The following page will be displayed:
In the bottom of the page sign up button is visible click that. Now you will be redirected to the following page:
Just fill this form. Put the exact PAN no because your PAN no is linked to your UCC no. Now click submit.
Now the following page is displayed:
In client code enter your UCC and in Member name write the name of the broker you are registered to eg. ICICI securities ltd, HDFC securities ltd. Now click submit. If your UCC number is correct then it will be accepted otherwise a message will come that your PAN code, client code and member name combination is not valid. If this happens then you may be in trouble any time. If you have UCC number then NSE will pay you 15 lacks in case of any loss of trade related data.
Many of the brokerage firms in India donot give proper UCC number to their customers. I have an account with the most popular discounted brokerage firm in India. They could not provide me my authentic UCC number. So I decided to to close my account with them. When I asked them for UCC number they got panicked and the same day they send me a lot of mails pretending as mails from nse transactions. DP number is not UCC number. Your user-id or client -id provided by brokerage firm is not UCC number. I have an account with ICICI securities ltd. Their UCC number is authentic. All the prestigious banks like SBI, ICICI, HDFC will provide you with UCC number. If you donot believe me just check the links I have referred in this page. These links are the official links of NSE india and SEBI. People are running after cheap brokerage firms. But they donot understand the risks.
How these fraud brokerage firms create my tax statements?
These brokerage firms belongs to influential people who have good links. So they manipulate the data according to their need. eg all of us need a demat account for share trading but the people who have lot of black money they donot have a demat account but still they trade in share market. In fact most of the money in share market is black money.
The banks charge very high brokerage what to do?
They have cheap brokerage plans which you can buy at a very reasonable price. But they will not be as cheap as some other brokerage service providers. But atleast your money is in safe hands. Go for those brokers whose banks are interlinked to the demat account. It is safe.
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