1) there is no risk in giving cancelled cheque leaf

2) the reason why broker firm is asking for cancelled cheque leaf is to verify your bank account details

3) Know your customer (KYC) is very essential for a lot of investments these days. KYC is needed for mutual funds, stock investments, etc.and cancelled cheque is required by the firm for verification purposes

4) ECS - Electronic clearance service (ECS), which is used for deducting money from your accounts every month also require a cancelled cheque.

5) A demat account is needed for anyone who wants to trade or invest in stocks. A cancelled cheque needs to be submitted to the stock brokerage along with the account opening form, ID proof, address proof, etc.

1. I foresee no adverse consequences which may emanate for you due to the issue of a cancelled cheque.

2. The demand for a cancelled cheque by the depository has stemmed out of the requirement to carry due diligence before opening your account. The depository insists on a cancelled cheque for the purpose of verifying the details of the applicant.

3. A cancelled cheque is sought only if the account holder's name is printed on it.

1. When you give a cancelled cheque then i wonder what prompts you t fear for anything.

2. Now no overwritten cheque is accepted in bank and in your case it is 'cancelled' written all over the leaf of the cheque itself.

3. As a measure of proof of holding an a/c with a particular bank, the leaf of a cancelled cheque is asked for.

4. So shake off your all doubts and got ahead with this. This is quite a standard procedure.

Dear Querist

There is no harm in future as well as present.

there is some KYC(Know your customer) Norms due to that the firm need the cancelled cheque leaf and the main purpose is only to get detail of your account.

1. It is very much required for opening a trading account,

2. The data/information required by the trading firm for opening your account and conducing transaction has been shown in a cheque like IFSC Code, Bank Account etc. Since, it is risky to give unfilled up cheque, cancelled cheque is asked as a safety measure,

3.You shallhave to open a demat account with your stock brpker for conducting share transaction and in that case you shall have to submit an application alongwith cancelled cheque & ID proof.

Actually sharekhan need to keep your bank details like your account number, ifsc code, branch name and issuance of cneque. cancelled cheque does not bear any liability so you have no risk in giving cancelled cheaue.

Don't sign on thecheque and do not cross the cheque because cross cheque may be misused by any person. You must write cancelled and write for the purpose of the cancellation on the back side. Maintain record of your cheque and write down cheque number because you are responsible for every misuse of cheque.