"The three ply responsibilities cast upon SEBI covers development of Indian securities market, its regulation, and, more importantly, protection of investors. For protection of investors, especially the small and retail investors and thereby retention of their confidence, it will not suffice if the market is made electronically driven or if it is rendered more transparent and efficient; nor will it suffice if the risk management system is made robust; or will it suffice, if the regulator is alert and active. For, if the investors are ill- informed, uninitiated, and vulnerable to be easily misguided or misled, then, they and soon the market come to grief. It is, therefore, a matter of paramount importance that the investors are empowered through education on functioning of the market, the obligations of the intermediaries, the operational intricacies and the risks and pit falls involved in the securities trading."
[extracted from - Keynote address delivered at Investors Awareness Programme by Shri. T.M.Nagarajan, Whole Time Member, SEBI at Chennai on September 27, 2003.]

Such protection to be realistic at the operational level, SEBI has devised a number of measures in the first instance to regulate proper working of the securities market and different intermediaries connected therewith to be accountable and to diligently follow the rules, regulations and the code of conduct prescribed respectively for them. These are discussed in detail in the different modules under this project. SEBI has also formulated detailed literature for guidance of the investors to understand and avail full benefit of the regulatory measures intended for their protection. The guidelines of SEBI issued for this purpose are discussed in this module.

The third line of protection is the plan/project of SEBI to empower investors through education on the functioning of the market as aforesaid. It was in recognition of this felt need that SEBI has launched an all India Securities Market Awareness campaign in close co-ordination with various intermediaries, participants, investor associations and the Government.

SEBI strongly believes that investors are the backbone of the securities market. We must look after their interest aggressively which would contribute to their continued support to securities market. Many investors may not possess adequate expertise/knowledge to take informed investment decisions. Some of them may not be aware of the complete risk-return profile of the different investment options. Some investors may not be fully aware of the precautions they should take while dealing with market intermediaries and dealing in different securities. They may be unfamiliar with the market mechanism and the practices as well as their rights and obligations. Their education and awareness, therefore, hold the key to reviving and sustaining their interests in the securities market.

In order to create awareness among investors all over the country, SEBI has launched a massive nationwide investor awareness programme. As a part of the programme, SEBI has prepared a variety of literature, which would be of interest to investors. It has published a booklet and placed the contents thereof on its website. This booklet answers most of the queries an investor may have about investing in the securities market. The contents of the Booklet are reproduced separately under the Folder Students Corner

In the ensuing three articles we would be discussing guidelines given by SEBI for the benefit of investors handling securities transactions through stock exchanges. These precautions to be observed and a list of Do's and Don'ts.