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.

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 MITC) 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

S.No.	Activities	Expected Timelines
1.	KYC entered into KRA System and CKYCR	3 working days of account opening
2.	Client Onboarding	Immediate, but not later than one week
3.	Order execution	Immediate on receipt of order, but not later than the same day
4.	Allocation of Unique Client Code	Before trading
5.	Copy of duly completed Client Registration Documents to clients	7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6.	Issuance of contract notes	24 hours of execution of trades
7.	Collection of upfront margin from client	Before initiation of trade
8.	Issuance of intimations regarding other margin due payments	At the end of the T day
9.	Settlement of client funds	First Friday/Saturday of the month / quarter as per Exchange pre-announced schedule
10.	‘Statement of Accounts’ for Funds, Securities and Commodities	Monthly basis
11.	Issuance of retention statement of funds/commodities	5 days from the date of settlement
12.	Issuance of Annual Global Statement	30 days from the end of the financial year
13.	Investor grievances redressal	21 calendar days from the receipt of the complaint

6. DOs and DON’Ts for Investors

DOs	DON’Ts
1. Read all documents and conditions being agreed before signing the account opening form. 2. Receive a copy of KYC, copy of account opening documents and Unique Client Code. 3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. 4. Receive all information about brokerage, fees and other charges levied. 5. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. 6. Debit and Pledge Instruction (DDPI) — However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting DDPI, carefully examine the scope and implications of powers being granted. 7. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades. 8. Receive funds and securities/commodities on time, as prescribed by SEBI or exchange from time to time. 9. Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. 10. Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (Monthly or Quarterly). 11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. 12. Retain documents for trading activity as it helps in resolving disputes, if they arise.	1. Do not deal with unregistered stock broker. 2. Do not forget to strike off blanks in your account opening and KYC. 3. Do not submit an incomplete account opening and KYC form. 4. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. 5. Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker. 6. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. 7. Do not opt for digital contracts, if not familiar with computers. 8. Do not share trading password. 9. Do not fall prey to fixed / guaranteed returns schemes. 10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits. 11. Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

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:

#	Stage	Details
1	Investor complaint / Grievances	Mode of filing with stock broker: Investor can approach the Stock Broker at the designated Investor Grievance e-mail ID. The Stock Broker will strive to redress the grievance immediately, but not later than 21 days of receipt. Mode of filing with stock exchanges: SCORES 2.0 (https://scores.sebi.gov.in) Two level review: • First review done by Designated body/Exchange • Second review done by SEBI Emails to designated email IDs of Exchange
2	Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration	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.
3	Steps to be followed in ODR for Review, Conciliation and Arbitration	1. Investor to approach Market Participant for redressal of complaint. 2. If investor is not satisfied: (i) May escalate on SEBI SCORES portal, or (ii) May file on SMARTODR portal for online conciliation and arbitration. 3. Upon receipt on SMARTODR portal, the relevant MII will review and endeavor to resolve within 21 days. 4. If not amicably resolved, the matter shall be referred for conciliation. 5. During conciliation, the conciliator will endeavor for settlement within 21 days (extendable by 10 days with consent). 6. If conciliation is unsuccessful, the investor may request arbitration. 7. The arbitration process to be concluded within 30 days (extendable by 30 days with consent).

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 issued.

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 at https://www.cdslindia.com/DP/dplist.aspx

4. Description of services provided by the Depository through DPs to investors

(1) Basic Services

Sr.No.	Brief about the Activity / Service	Expected Timelines
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: physical DIS up to 4 p.m., electronic instructions up to 6 p.m. on T day. For T+0 day settlements: EPI instructions up to 11:00 AM on T day. (‘T’ refers to Trade Day)

(2) Special Services

Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services:

Sr.No.	Type of Activity / Service	Brief about the Activity / Service
1	Value Added Services	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	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

#	Stage	Details
1	Investor Complaint / Grievances	(a) Electronic mode: (i) SCORES 2.0 (https://scores.sebi.gov.in) — Two level review: First by Designated Body, Second by SEBI. (ii) Depository web portal: https://www.cdslindia.com/Footer/grievances.aspx (iii) Email to: [email protected] (b) Offline mode: For tracking, submit online through the portal. Complaints lodged directly with the Depository shall be resolved within 21 days.
2	Online Dispute Resolution (ODR)	If not satisfied with the resolution provided by DP or other Market Participants, file on SMARTODR platform (https://smartodr.in/register) for resolution through online conciliation or arbitration.
3	Steps in ODR	– Approach Market Participant for redressal. – If not satisfied, escalate on SEBI SCORES or file on SMARTODR. – MII will review and endeavour to resolve within 21 days. – If unresolved, refer for conciliation (21 days, extendable by 10). – If conciliation unsuccessful, refer for arbitration (30 days, extendable by 30).

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

Type of special circumstances	Timelines
– 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. – 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 Investors

8. 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 adhere to the Advertisement Code for Research Analysts.
• To maintain records of interactions with all clients including prospective clients where any conversation related to research services has taken place.

C. Details of services provided to investors (No Indicative Timelines)

Onboarding of Clients: Sharing of terms and conditions of research services; Completing KYC of fee paying clients.

Disclosure to Clients:

• Disclose information material for the client to make an informed decision, including details of business activity, disciplinary history, terms and conditions, details of associates, risks and conflicts of interest.
• Disclose the extent of use of AI tools in providing research services.
• Disclose, while distributing third party research, any material conflict of interest.
• Disclose any conflict of interest of research services with other activities.

Other service obligations:

• Distribute research reports and recommendations without discrimination.
• Maintain confidentiality w.r.t publication of the research report until made available in the public domain.
• Respect data privacy rights of clients and protect unauthorized use of their confidential information.
• Disclose timelines for the services provided and ensure adherence.
• Provide clear guidance and adequate caution notice for complex and high-risk financial products/services.
• Treat all clients with honesty and integrity.
• Ensure confidentiality of information shared by clients unless required for legal obligations or with specific consent.

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

1. Investor can lodge complaint/grievance against Research Analyst:

With the Research Analyst: The RA shall strive to redress the grievance immediately, but not later than 21 days of receipt.

On SCORES or with RAASB:

i. SCORES 2.0 (https://scores.sebi.gov.in) — Two level review: First by RAASB, Second by SEBI.

ii. Email to designated email ID of RAASB.

2. If not satisfied, the Investor may file on SMARTODR platform for resolution through online conciliation or arbitration.

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 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 agreed
• 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. 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. (List available at SEBI website)
• 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. You may make payment through CeFCoM of RAASB if available.
• 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 before acting on recommendation.
• viii. Seek clarifications and guidance on research recommendations, especially for complex and high risk products.
• ix. Always be aware that you have the right to stop availing the service as per the terms agreed.
• x. Always be aware that you have the right to provide feedback in respect of the services received.
• xi. Always be aware that you will not be bound by any clause 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.