Investor Charter
SEBI Investor Charter – Stock Broker
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 investor.
MISSION
1. To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
2. To establish and maintain a relationship of trust and ethics with the investors.
3. To observe highest standard of compliances and transparency.
4. To always keep ‘protection of investors’ interest’ as goal while providing service.
Services provided to Investors
• Execution of trades on behalf of investors.
• Issuance of Contract Notes.
• Issuance of intimations regarding margin due payments.
• Facilitate execution of early pay-in obligation instructions.
• Settlement of client’s funds.
• Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
• Issuance of retention statement of funds.
• Risk management systems to mitigate operational and market risk.
• Facilitate client profile changes in the system as instructed by the client.
• Information sharing with the client w.r.t. exchange circulars.
• Redressal of Investor’s grievances.
Rights of Investors
• 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.
• Receive complete information about the risks, obligations, and costs of any investment before investing.
• Receive recommendations consistent with your financial needs and investment objectives.
• Receive a copy of all completed account forms and agreements.
• Receive account statements that are accurate and understandable.
• Understand the terms and conditions of transactions you undertake.
• Access your funds in a timely manner and receive information about any restrictions or limitations on access.
• Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties.
• Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.
Various activities of Stock Brokers with timelines
DOs and DON’Ts for Investors
Grievance Redressal Mechanism
Level 1 Approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt of the grievance.
Level 2 Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange.
Level 3 The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI) @ https://scores.sebi.gov.in/ Complaints Resolution Process at Stock Exchange explained graphically:
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.
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
( 2 ) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include
5. Details of Grievance Redressal Mechanism
The Process of investor grievance redressal
6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant
7. Dos and Don’ts for 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.
C. Details of services provided to investors (No Indicative Timelines)
– Onboarding of Clients.
– Disclosure to Clients
– 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.
D. Details of grievance redressal mechanism and how to access it
In case of any grievance / complaint, an investor should approach the concerned research analyst
and shall ensure that the grievance is resolved within 30 days.
If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI
on SEBI’s SCORES portal which is a centralized web based complaints redressal system. SEBI
takes up the complaints registered via SCORES with the concerned intermediary for timely
redressal. SCORES facilitates tracking the status of the complaint.
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. Expectations from 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.
iv. Please refer to the list of all SEBI registered Research Analysts which is available on SEBI
website in the following link:
( https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=14s )
v. Always pay attention towards disclosures made in the research reports before investing.
vi. Pay your Research Analyst through banking channels only and maintain duly signed receipts
mentioning the details of your payments.
vii. Before buying securities or applying in public offer, check for the research recommendation
provided by your research Analyst.
viii. Ask all relevant questions and clear your doubts with your Research Analyst before
acting on the recommendation.
ix. Inform SEBI about Research Analyst offering assured or guaranteed returns
x. Ask all relevant questions and clear your doubts with your Research Analyst before acting on
the recommendation.
xi. 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 rumours.
iii. Do not get attracted to limited period discount or other incentive, gifts, etc. offered by
Research Analyst.
iv. Do not share login credentials and password of your trading and demat accounts with the
Research Analyst.
