The investor charter that was proposed in the Union Budget 2021-2022 with the aim of protecting investors from misselling of financial products, was released by the Securities and Exchange Board of India (SEBI). According to the released charter, the aim of SEBI is to protect the interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner.
This charter (for investors in the Indian securities market) includes the rights and responsibilities of investors, and dos and don’ts of investing in the securities market. The charter has been published to protect the “interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner”.
Know about the Investor Charter:
To have streamlined procedures to ensure ease of transacting/ investing in securities market for investors.
To ensure that SEBI registered intermediaries / regulated entities adhere to their investor charters, including grievance redressal mechanism.
To enable investors to understand risks involved before investing.
To ensure fair and equitable treatment to investors.
To analyse the causes of investor grievances on a periodic basis and make appropriate policy amendments, if required.
To provide for alternative dispute resolution mechanism in agreements between investors and MIIs/ Intermediaries.
To encourage innovative and digital solutions in securities market.
INVESTORs have RIGHT to:
Get fair and equitable treatment.
Expect redressal of investor grievances filed in SCORES in a time bound manner.
Get quality services from SEBI recognised Market Infrastructure Institutions and SEBI registered intermediaries / regulated entities/ Asset Management Companies.
INVESTORs have RESPONSIBILITY to:
Deal with SEBI recognised Market Infrastructure Institutions and SEBI registered intermediaries / regulated entities only.
Update their contact details like address, mobile number, email address, nomination, etc. and other key KYC details in case of any change.
Ensure that grievances are taken up with the concerned entities within time limits prescribed.
Ensure that their accounts are operated only for their own benefit.
DO’s for Investors:
Read and understand the documents carefully before investing.
Know about the Investor Grievance Redressal Mechanism.
Know the risks involved before investing.
Keep track of account statements and promptly bring any discrepancy noticed to the concerned stock exchange, intermediary or Asset Management Company.
Know about various fees, charges, margins, premium, etc. involved in the transactions.
Preserve relevant transaction related documents.
DONT’s for Investors:
Don’t make payments in cash while making any investment in securities market, beyond the prescribed limit.
Don’t share your critical information like account details, login ids, passwords, DIS, etc. with anyone.