Bombay Stock Exchange Limited is the oldest Stock Exchange in Asia with a rich heritage. Popularly known as “BSE”, it was established as “The Native Share & Stock Brokers Association” in 1875. It is the first Stock Exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. The Exchange’s pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its Index, SENSEX, is tracked worldwide. Earlier an Association of Person (AOP), the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). The Exchange not only provides an efficient market but also upholds the interests of the Investors and ensures redressal of their grievances, whether against the companies or its trading members. It strives to educate and enlighten the Investors by making available to them the necessary information. Department of Investor Services: Protecting the interest of Investors dealing in securities is one of the main objectives of the Exchange. In pursuit of these objectives, Department of Investors Services (DIS) was set up in 1986. The grievances of Investors against listed companies and Trading Members of the Exchange are redressed by the Exchange. The Exchange also assists in arbitration process between Trading Members inter-se as well as between Trading Members and Non – Trading members. The capital market can grow only when the Investors find it safe for them to invest in the capital market and they are assured that rules governing the market are fair and just to all the players in the market. With a view to ensure speedy and effective resolution of claims, differences and disputes between Trading Members and non-trading members, the Exchange has laid down a set of procedures for arbitration thereof. These procedures are duly embodied in the Rules, Bye–laws and Regulations of the Exchange, which have been duly approved by the Government of India /Securities and Exchange Board of India (SEBI}. Safeguards for Investors: These are some of the safe-guards that needs to be adhered to by the Investors’ before trading in the securities market.
  1. While Selecting the Broker/ Sub-Broker
Deal with only SEBI registered Broker / Sub-broker after due diligence.  Details of List of Brokers’ can be procured from the Member’s List published by the Exchange and from the              website:  www.bseindia.com While entering into an Agreement:
  1. Fill in a Client registration form with Broker / Sub – broker
  2. Each and every prospective client should read and understand the Risk Disclosure Document specified by the Exchange and before entering into trading in the Equities (Cash) or the Derivatives Segment. The Client should obtain a signed copy of the same from the Trading Members.
  3. Enter into Broker / Sub–broker – Client Agreement. This agreement is mandatory for all Investors for registering as a client of a BSE Trading Member. The Client should ensure the following before entering into an agreement:
- Carefully read and understand the terms and conditions of the agreement, before executing the same on a valid stamp paper of the requisite value. - Agreement to be signed on all the pages by the Client and the Member or their representative who has the authority to sign the agreement. Agreement has also to be signed by the witnesses by giving their name and address. -    The Client should obtain signed copy of all the documents for his records.
  1. While Transacting
  2. Specify to the Broker / Sub- broker, the Exchange through which your trade is to be executed and maintain separate account per Exchange.
  1. Obtain a valid Contract Note issued by Trading Member of the Exchange within 24 hours of the execution of the Trade.
Contract note is a confirmation of trade(s) done on a particular day for and on behalf of a client in a format prescribed by the Exchange. It establishes a legally enforceable relationship between the Member and Client in respect of settlement of trades executed on the Exchange as stated in the Contract note. Contract notes are made in duplicate, and the Member and Client both keep one copy each. The Client/s are expected to sign on the duplicate copy of the contract note for having received the original.
  • Contract Note – cum-Bill - Form ‘A’ & “AA” – Contract Note issued where Trading Member is acting for constituents as brokers and agents.
  • Contract Note – Form ‘B’ – Contract note issued by Trading Member dealing with constituents as Principals.
  1. Ensure that the Contract Note contains:
SEBI registration number of the Trading Member. Details of trade such as, Order no, trade no., trade time, quantity, price, brokerage, settlement number, details of other levies.  The trade price should be shown separately from the brokerage charged. The maximum brokerage that can be charged is Rs.0.25 per share/debenture or 2.5% of the contract price per share /debenture whichever is higher. Any additional charges that the Trading Member can charge are Securities Transaction Tax , Service Tax on brokerage, Stamp duty ,etc., as may be applicable  from time to time. The brokerage and service tax is indicated separately in the contract note. Signature of authorised representative. Arbitration clause stating that the  Courts in Mumbai shall have exclusive jurisdiction in respect of all proceedings to which the Exchange is a party, and in respect of all other proceedings, the Courts having jurisdiction over the area in which the respective Regional Arbitration Centre is situated, shall have jurisdiction must be present on the face of the Contract note. The back of the Contract Note should indicate clause to Arbitration, Limitation period for filing of Arbitration Reference. The Exchanges provide Complaint Resolution, Arbitration and Appellate arbitration facilities at the Regional Arbitration Centres (RAC). The client may approach its nearest centre.  Sub – broker: ‘Sub–broker’ means any person not being a Trading Member of the Stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock brokers. No sub –broker can buy, sell deal in Securities unless he holds a certificate granted by SEBI under the Regulations. SEBI has stated that the Trading Member of the Exchange is responsible for the acts, deeds and things of the sub –brokers affiliated to it.
  1. Ensuring Settlement.
    1. Ensure delivery of securities /payment of money to the Trading Member immediately upon getting the contract note for sale / purchase but in any case, before the prescribed pay-in-day.
    2. The Trading Member should pay the money or securities to the Investors within 24 hours of the payout.
  2. Open demat account, preferably opt for buying and selling demat shares.
  3. For delivery of shares from Demat a/c, give the Depository Participant (D P) ‘Delivery out’ instructions to transfer the same from the beneficiary account to the pool account of  Trading Member through whom shares and securities have been sold. 
The following details to be given to the DP: details of the pool a/c of Trading Member to whom the shares are to be transferred, details of scrip, quantity etc. As per the requirements of depositories the Delivery out Instruction should be given atleast 48 hours prior to the cut-off time for the prescribed securities pay-in.
  1. For receiving shares in your Demat a/c, give the Depository Participant (D P) ‘Delivery in’ instructions to accept shares in beneficiary account from the pool account of Trading Member through whom shares have been purchased .
  2. If physical deliveries are received – check the deliveries received as per Good/Bad delivery guidelines issued by SEBI.
Bad delivery cases should be sorted out through Exchange machinery immediately.
  1. The investors should tally the account with the Trading Member Every quarter.
  2. The investors may verify their trades done on BSE through Trade Confirmation System at www.bseindia.com if they have a Contract Note for the concerned trade.
  3. All registration of shares for ownership of physical shares should be executed by a valid, duly completed and stamped transfer deed.
Rights of Investors
  1. To receive all benefits/ material information declared for the Investors by the Company.
  2. Prompt Services from the Company such as transfers, Sub-divisions and consolidation of holdings in the Company.
  3. Equity holders have a right to subscribe to further issue of Capital by the Company.
  4. Receipt of the Contract note from the Trading Member in the specified format showing transaction price and brokerage separately.
  5. Investors can expect delivery of shares purchased/value of shares sold within one working day (excluding Saturday, Sunday and Bank Holidays) after the Pay –out of the Settlement, unless a client has requested otherwise.
  6. Approach concerned nearest Regional  Arbitration Centre of BSE, given below in case of complaints against  the Trading Members of BSE  or complaints against companies listed on BSE :
 
Regional Investor Service Centres
Ahmedabad BSE Investor Service Centre 203/204,' Abhishree Avenue' Near Nehru Nagar Circle S. M. Road,Ambawadi Ahmedabad - 380 015 Tele.No.: 079-2640 2992 / 2646 2992 Fax No.: 079 - 2640 2992 Contact Person : Mr. Nikhil Mehta E-mail Id: nikhil.mehta@bseindia.com Bangalore BSE Investor Service Centre Stock Exchange Towers, Annexe Building No. 51, 1st Cross, J C Road, Bangalore – 560027 Tele. No. 080 – 4150 5075 Contact person - Mr. Thilakraj Rai E-mail Id : thilakraj.rai@bseindia.com 
Chennai BSE Investor Service Centre No.4, Vijaya Towers, 3rd Floor Kodambakkam High Road (Opp.to Palm Grove Hotel) Chennai – 600 034 Tele. No.:044-42089959 Telefax No.:044-42089958 Contact Person : Ms. Deepa Rangarajan E-mail Id: iscchennai@bseindia.com,  deepa.rangarajan@bseindia.com Hyderabad BSE Investor Service Centre Flat no. 302, Marigold Pavani Estates, Dwarkapuri Colony, Pujagutta, Hyderabad - 500082 Telephone No.: 040-30605844/45/46 Contact person - Mr. Siddharth Dixit E-mail Id: siddharth.dixit@bseindia.com
Indore BSE Investor Service Centre 201, Palika Plaza Phase II, MTH Compound Indore Tele No.: 0731-4008208 Fax No.: 0731-4008222 Contact Person : Ms. Sheron Goyal E-mail Id: sheron.goyal@bseindia.com Jaipur BSE Investor Service Centre Office No. 401, Situated on 4th floor, Durga Business Center, Opp. Hotel Gangaur, M.I.Road, Jaipur - 302001 Contact person - Mr. Chidrup Jain  E-mail Id: ipf.chidrup@bseindia.com
Kanpur BSE Investor Service Centre 5th Floor, Padam Towers 14/113, Civil Lines Kanpur - 208001 Tele No.: 0512 - 233 8115 / 233 8074 Contact Person : Mr. Jitendranath Shukla E-mail Id: jitendranath.shukla@bseindia.com Kolkata BSE Investor Service Centre 57 Jawaharlal Nehru Road, Horizon, 2nd Floor Near Rabindra Sadan Metro Kolkata - 700 071 Tele. No. :033-22821375, Telefax No.:033-22821376 Contact Person : Mr. Anirban Guha E-mail Id:isc.kolkata@bseindia.com,  anirban.guha@bseindia.com
Mumbai BSE Investor Service Centre Cama Building, 1st floor, Dalal Street, Fort, Mumbai – 400001. Tele. No.: 022-22721233/34 Fax No.: 022-22723677 Contact Person: Mr. Lochan Tendle E-mail Id: stanies.crasto@bseindia.com New Delhi BSE Investor Service Centre 15th Floor, Dr. Gopal Das Bhawan, 28 Barakhamba Road, Connaught Place New Delhi - 110 001 Tele. No. :011-43007413/14/15/16 Contact Person : Ms. Neha Gupta E-mail Id:iscdelhi@bseindia.com,                 neha.gupta@bseindia.com
Pune BSE Investor Service Centre Shivleela Chambers, 4th Floor,752 Sadashiv Peth, R.B.Kumathekar Marg, Pune - 411030. Tele No. 020 - 65202065.  Contact person - Mr. Jason Dias E-mail :jason.dias@bseindia.com  
JURISDICTION OF COURTS: The Courts in Mumbai shall have exclusive jurisdiction in respect of all proceedings to which the Exchange is a party, and in respect of all other proceedings, the Courts having jurisdiction over the area in which the respective Regional Arbitration Centre is situated, shall have jurisdiction.