Investor Charter

SEBI Investor Charter – Stock Broker

1. VISION

To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.

2. MISSION

i) To provide high quality and dependable service through innovation, capacity enhancement and use of technology.

ii) To establish and maintain a relationship of trust and ethics with the investors.

iii) To observe highest standard of compliances and transparency.

iv) To always keep ‘protection of investors’ interest’ as goal while providing service.

v) To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

3. Services provided to Investors by stockbrokers include

I. Execution of trades on behalf of investors.

II. Issuance of Contract Notes.

III. Issuance of intimations regarding margin due payments.

IV. Facilitate execution of early pay-in obligation instructions.

V. Periodic Settlement of client’s funds.

VI. Issuance of retention statement of funds at the time of settlement.

VII. Risk management systems to mitigate operational and market risk.

VIII. Facilitate client profile changes in the system as instructed by the client.

IX. Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars.

X. Provide a copy of Rights & Obligations document to the client.

XI. Communicating Most Important terms and Conditions (MITC) to the client.

XII. Redressal of Investor’s grievances.

4. Rights of Investors

I. Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information).

II. Receive complete information about the risks, obligations, and costs of any investment before investing.

III. Receive a copy of all completed account forms and rights & obligation document.

IV. Receive a copy of ‘Most Important Terms & Conditions’ (MITC).

V. Receive account statements that are accurate and understandable.

VI. Understand the terms and conditions of transactions you undertake.

VII. Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.

VIII. Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.

IX. Discuss your grievances with compliance officer / compliance team / dedicated grievance redressal team of the firm and receive prompt attention to and fair consideration of your concerns.

X. Close your zero balance accounts online with minimal documentation

XI. Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account

XII. Not be discriminated against in terms of services offered to equivalent clients

XIII. Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place

XIV. In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place

XV. Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence.

XVI. Get warnings on the trading systems while placing orders in securities where surveillance measures are in place

XVII. Get access to products and services in a suitable manner even if differently abled

XVIII. Get access to educational materials of the MIIs and brokers

XIX. Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms

XX. Deal with one or more stockbrokers of your choice without any compulsion of minimum business

XXI. Have access to the escalation matrix for communication with the broker

XXII. Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

5. Various activities of Stock Brokers with timelines

6. DOs and DON’Ts for Investors

Additionally, Investors may refer to Dos and Don’ts issued by MIIs on their respective websites from time to time.

7. Grievance Redressal Mechanism

The process of investor grievance redressal is as follows:

8. Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)

Default of TM/CM

Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:

• ● Circular is issued to inform about declaration of Stock Broker as Defaulter.

• ● Information of defaulter stock broker is disseminated on Stock Exchange website.

• ● Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period.

• ● Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.
  

Following information is available on Stock Exchange website for information of investors:

• ● Norms for eligibility of claims for compensation from IPF.

• ● Claim form for lodging claim against defaulter stock broker.

• ● FAQ on processing of investors’ claims against Defaulter stock broker.

• ● Provision to check online status of client’s claim.

• ● Standard Operating Procedure (SOP) for handling of Claims of Investors in the Cases of Default by Brokers

• ● Claim processing policy against Defaulter/Expelled members

• ● List of Defaulter/Expelled members and public notice issue

Investor Charter for Depositories and Depository Participants

1. Vision  

Towards making Indian Securities Market – Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.  

2. Mission

• To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.  • To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them. • To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights. 

3. Details of business transacted by the Depository and Depository Participant (DP) 

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants – Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link https://www.cdslindia.com/DP/dplist.aspx

4. Description of services provided by the Depository through Depository Participants (DP) to investors  

( 1 ) Basic Services  

Sr.No.	Brief about the Activity / Service	Expected Timelines for processing by the DP after receipt of proper documents
1	Dematerialization of securities	7 days
2	Rematerialization of securities	7 days
3	Mutual Fund Conversion/ Destatementization	5 days
4	Re-conversion/Restatementisation of Mutual fund units	7 days
5	Transmission of securities	7 days
6	Registering pledge request	15 days
7	Closure of demat account	30 days
8	Settlement Instruction	For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities.   For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day.   Note: ‘T’ refers ‘Trade Day’

( 2 ) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include   

Sr. No.	Type of Activity /Service	Brief about the Activity / Service
1	Value Added Services	Depositories also provide value added services such as a. Basic Services Demat Account (BSDA) b. Transposition cum dematerialization c. Linkages with Clearing System  d. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.
2	Consolidated Account statement (CAS)	CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3	Digitalization of services provided by the depositories	Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: a. E-account opening: b. Online instructions for execution:  c. e-DIS / Demat Gateway: d. e-CAS facility: e. Miscellaneous services:

 

5. Details of Grievance Redressal Mechanism

The Process of investor grievance redressal  

1	Investor Complaint/ Grievances	Investor can lodge complaint/ grievance against the Depository/DP in the following ways:   (a) Electronic mode –  (i) SCORES 2.0 (a web based centralized grievance redressal system of SEBI) [https://scores.sebi.gov.in/]  Two Level Review for complaint/grievance against DP:  – First review done by Designated Body  – Second review done by SEBI  (ii)Respective Depository’s web portal dedicated for the filing of compliant [https://www.cdslindia.com/Footer/grievances.aspx] (iii)Emails to designated email IDs of  Depository [[email protected]]  (b) Offline mode – For tracking of your grievance, we request you to submit the same online through the portal. The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days.
2	Online Dispute Resolution (ODR) platform for online Conciliation and  Arbitration	If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration.  [https://smartodr.in/register]
3	Steps to be followed in ODR for Review, Conciliation and Arbitration	– Investor to approach Market Participant for redressal of complaint  – If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal.  – Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.  – Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days.  – If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation.  – During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator.  – If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.  – The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.

 

6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant 

 

SL No.	Type of special circumstances	Timelines for the Activity/ Service
1	– Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges.  – Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

  7. Dos and Don’ts for Investors8. Rights of investors 9. Responsibilities of investors  10. Code of Conduct for Depositories (Part D of Third Schedule of SEBI (D & P) Regulations, 2018)11. Code of Conduct for Participants (Part A of Third Schedule of SEBI (D & P) Regulations, 2018)

Investor Charter of Research Analyst (RA)

A. Vision and Mission Statements for investors

– Vision 

Invest with knowledge & safety. 

– Mission 

Every investor should be able to invest in right investment products based on their  needs, manage and monitor them to meet their goals, access reports and enjoy financial  wellness. 

B. Details of business transacted by the Research Analyst with respect to the investors 

• To publish research report based on the research activities of the RA 

• To provide an independent unbiased view on securities. 

• To offer unbiased recommendation, disclosing the financial interests in  recommended securities. 

• To provide research recommendation, based on analysis of publicly available  information and known observations. 

• To conduct audit annually 

• To ensure that all advertisements are in adherence to the provisions of the  Advertisement Code for Research Analysts. 

• To maintain records of interactions, with all clients including prospective clients (prior to onboarding), where any conversation related to the research services has taken place. 

C. Details ofservices provided to investors (No Indicative Timelines) 

• Onboarding of Clients 

o Sharing of terms and conditions of research services 

o Completing KYC of fee paying clients 

• Disclosure to Clients: 

o To disclose, information that is material for the client to make an informed decision,including details of its business activity, disciplinary history, the terms and conditions  of research services, details of associates, risks and conflicts of interest, if any 

o To disclose the extent of use of Artificial Intelligence tools in providing research  services 

o To disclose, while distributing a third party research report, any material conflict of interest ofsuch third party research provider or provide web address that directs a  recipient to the relevant disclosures 

o To disclose any conflict of interest of the activities of providing research services with  other activities of the research analyst. 

• To distribute research reports and recommendations to the clients without  discrimination.

• To maintain confidentiality w.r.t publication of the research report until made  available in the public domain. 

• To respect data privacy rights of clients and takemeasuresto protect unauthorized use  of their confidential information 

• To disclose the timelinesforthe services provided by the research analystto clients and  ensure adherence to the said timelines 

• To provide clear guidance and adequate caution notice to clients when providing  recommendations for dealing in complex and high-risk financial products/services • To treat all clients with honesty and integrity 

• To ensure confidentiality of information shared by clients unless such information is required to be provided in furtherance of discharging legal obligations or a client has  provided specific consent to share such information 

D. Details of grievance redressal mechanism and how to access it 

1. Investor can lodge complaint/grievance against Research Analyst in the following  ways: 

Mode of filing the complaint with research analyst 

In case of any grievance / complaint, an investor may approach the concerned  Research Analyst who shallstrive to redressthe grievance immediately, but not later than 21 days of the receipt of the grievance. 

Mode of filing the complaint on SCORES or with Research Analyst Administration  and Supervisory Body (RAASB)

i. SCORES 2.0 (a web based centralized grievance redressalsystem of SEBI for  facilitating effective grievance redressal in time-bound manner)  

(https://scores.sebi.gov.in) 

Two level review for complaint/grievance against Research Analyst: 

• First review done by designated body (RAASB) 

• Second review done by SEBI 

ii. Email to designated email ID of RAASB 

2. If the Investor is not satisfied with the resolution provided by the Market Participants,  then the Investor has the option to file the complaint/ grievance on SMARTODR platform  for its resolution through online conciliation or arbitration. 

With regard to physical complaints, investors may send their complaints to: 

Office of Investor Assistance and Education,

Securities and Exchange Board of India, SEBI 

Bhavan, Plot No. C4-A, ‘G’ Block, Bandra-Kurla  

Complex, Bandra (E), 

Mumbai – 400 051 

E. Rights of investors 

• Right to Privacy and Confidentiality 

• Right to Transparent Practices 

• Right to fair and Equitable Treatment 

• Right to Adequate Information 

• Right to Initial and Continuing Disclosure 

-Right to receive information about all the statutory and regulatory disclosures • Right to Fair & True Advertisement 

• Right to Awareness about Service Parameters and Turnaround Times 

• Right to be informed of the timelines for each service 

• Right to be Heard and Satisfactory Grievance Redressal 

• Right to have timely redressal 

• Right to Exit from Financial product or service in accordance with the terms and conditions agreed with the research analyst 

• Right to receive clear guidance and caution notice when dealing in Complex and High Risk Financial Products and Services 

• Additional Rights to vulnerable consumers 

– Right to get access to services in a suitable manner even if differently abled • Right to provide feedback on the financial products and services used 

• Right against coercive, unfair, and one-sided clauses in financial agreements F. Expectationsfrom the investors (Responsibilities of investors) 

• Do’s 

i. Always deal with SEBI registered Research Analyst. 

ii. Ensure that the Research Analyst has a valid registration certificate. 

iii. Check for SEBI registration number. 

Please refer to the list of all SEBI registered Research Analyst which is available  on SEBI website in the following link:  https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi =yes&intmId=14) 

iv. Always pay attention towards disclosures made in the research reports before  investing. 

v. Pay your Research Analyst through banking channels only and maintain duly signed  receipts mentioning the details of your payments. You may make payment of fees through Centralized Fee Collection Mechanism (CeFCoM) of RAASB if research  analyst has opted for the mechanism. (Applicable for fee paying clients only) 

vi. Before buying/ selling securities or applying in public offer, check for the research  recommendation provided by your Research Analyst.

vii. Ask all relevant questions and clear your doubts with your Research Analyst before  acting on recommendation. 

viii. Seek clarifications and guidance on research recommendationsfrom your Research  Analyst, especially if it involves complex and high risk financial products and  services. 

ix. Always be aware that you have the right to stop availing the service of a Research Analyst as per the terms of service agreed between you and your Research  Analyst. 

x. Always be aware that you have the right to provide feedback to your  Research Analyst in respect of the services received. 

xi. Always be aware that you will not be bound by any clause, prescribed by the  research analyst, which is contravening any regulatory provisions. 

xii. Inform SEBI about Research Analyst offering assured or guaranteed returns. 

• Don’ts

i. Do not provide funds for investment to the Research Analyst. 

ii. Don’t fall prey to luring advertisements or market rumors. 

iii. Do not get attracted to limited period discount or other incentive, gifts, etc. offered  by Research Analyst. 

iv. Do not share login credential and password of your trading, demat or bank accounts  with the Research Analyst.