Before you start investing in securities market, you need to understand and identify your investment goals, objectives and risk appetite (the extent up to which you are willing to take risk). Every investment decision should reflect your needs and requirements and should be as per your desired preferences. For example, whether you are willing to invest in safe products which give steady returns or if you want to take slightly higher risk and invest in products which may give you higher returns. Every investment comes with the risk of change in the inherent value of that investment. For example, investment in shares of automobile industry will attract the risk attached with the automobile industry (sales may go up or down or one brand of cars may be sold more than other brand, etc.)
Once you have decided your goals and identified your risk appetite, please decide the amount you want to invest and the time period over which you want to invest. The ability to take risk differs from investor to investor and could be dependent on the goals as well as the age of the investor.
The investors should also be well informed about their rights, responsibilities, Do’s and Don’ts of investing and these documents are available on the website/s of SEBI and stock exchanges and depositories. The Do’s and Don’ts of investing in securities market are also attached in the Annexure-I of this booklet. In addition to the same, the rights and obligations of investors are attached in the Annexure-II of this booklet.
Investors should make informed decision before investing in the shares of a company. They should carefully read all the information related to the company such as disclosures related to the company, its promoters, the project details, financial details, etc. These details can be found on the websites of the stock exchanges.
For investing in securities market, investors may also approach any SEBI registered Investment Adviser. A list of SEBI registered Investment Adviser(s) may be found on the following link: https://www.sebi.gov.in.
However, investors should exercise caution against unsolicited investment advice from unregistered investment advisers. For details, you may refer Annexure-III of this booklet.