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Investor Charter

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

  1. i)To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
  2. ii)To establish and maintain a relationship of trust and ethics with the investors.
  3. iii)To observe highest standard of compliances and transparency.
  4. iv)To always keep protection of investors’ interest as goal while providing service.
  5. 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 stock brokers include

  1. I.Execution of trades on behalf of investors.
  2. II.Issuance of Contract Notes.
  3. III.Issuance of intimations regarding margin due payments.
  4. IV.Facilitate execution of early pay-in obligation instructions.
  5. V.Periodic Settlement of client’s funds.
  6. VI.Issuance of retention statement of funds at the time of settlement.
  7. VII.Risk management systems to mitigate operational and market risk.
  8. VIII.Facilitate client profile changes in the system as instructed by the client.
  9. IX.Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars.
  10. X.Provide a copy of Rights & Obligations document to the client.
  11. XI.Communicating Most Important Terms and Conditions (MITC) to the client.
  12. XII.Redressal of Investor’s grievances.

4. Rights of Investors

  1. 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).
  2. II.Receive complete information about the risks, obligations, and costs of any investment before investing.
  3. III.Receive a copy of all completed account forms and rights & obligation document.
  4. IV.Receive a copy of ‘Most Important Terms & Conditions’ (MITC).
  5. V.Receive account statements that are accurate and understandable.
  6. VI.Understand the terms and conditions of transactions you undertake.
  7. VII.Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.
  8. VIII.Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.
  9. 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.
  10. X.Close your zero balance accounts online with minimal documentation.
  11. XI.Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account.
  12. XII.Not be discriminated against in terms of services offered to equivalent clients.
  13. XIII.Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place.
  14. XIV.In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place.
  15. XV.Trade in derivatives after submission of relevant financial documents to the broker subject to broker’s adequate due diligence.
  16. XVI.Get warnings on the trading systems while placing orders in securities where surveillance measures are in place.
  17. XVII.Get access to products and services in a suitable manner even if differently abled.
  18. XVIII.Get access to educational materials of the MIIs and brokers.
  19. XIX.Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms.
  20. XX.Deal with one or more stockbrokers of your choice without any compulsion of minimum business.
  21. XXI.Have access to the escalation matrix for communication with the broker.
  22. 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.ActivitiesExpected Timelines
1KYC entered into KRA System and CKYCR3 working days of account opening
2Client OnboardingImmediate, but not later than one week
3Order executionImmediate on receipt of order, but not later than the same day
4Allocation of Unique Client CodeBefore trading
5Copy of duly completed Client Registration Documents to clients7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6Issuance of contract notes24 hours of execution of trades
7Collection of upfront margin from clientBefore initiation of trade
8Issuance of intimations regarding other margin due paymentsAt the end of the T day
9Settlement of client fundsFirst Friday/Saturday of the month / quarter as per Exchange preannounced schedule
10‘Statement of Accounts’ for Funds, Securities and CommoditiesMonthly basis
11Issuance of retention statement of funds/commodities5 days from the date of settlement
12Issuance of Annual Global Statement30 days from the end of the financial year
13Investor grievances redressal21 calendar days from the receipt of the complaint

6. DOs and DON’Ts for Investors

DOs

  1. 1.Read all documents and conditions being agreed before signing the account opening form.
  2. 2.Receive a copy of KYC, account opening documents and Unique Client Code.
  3. 3.Read the product, operational framework and timelines related to Trading and Clearing & Settlement processes.
  4. 4.Receive all information about brokerage, fees and other charges levied.
  5. 5.Register your mobile number and email ID in trading, demat and bank accounts to get regular transaction alerts.
  6. 6.If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI). DDPI is not mandatory; examine scope carefully before granting.
  7. 7.Receive contract notes for trades executed within 24 hours showing transaction price, brokerage, GST, STT/CTT, etc.
  8. 8.Receive funds and securities / commodities on time as prescribed by SEBI or Exchanges.
  9. 9.Verify trade details, contract notes and statements and approach authorities for discrepancies. Verify trades on Exchange websites.
  10. 10.Receive statements of accounts periodically as per chosen settlement option (Monthly or Quarterly).
  11. 11.In case of grievances, approach stock broker, Stock Exchange or SEBI within prescribed timelines.
  12. 12.Retain trading documents to help resolve disputes if they arise.

DON’Ts

  1. 1.Do not deal with unregistered stock brokers.
  2. 2.Do not forget to strike off blanks in your account opening and KYC forms.
  3. 3.Do not submit incomplete account opening or KYC forms.
  4. 4.Do not forget to inform changes in information linked to your trading account and obtain confirmation of updation.
  5. 5.Do not transfer funds for trading to anyone other than the stock broker. Never pay in the name of broker employees.
  6. 6.Do not ignore emails or SMSs regarding trades from the Stock Exchange. Raise concerns if discrepancies are observed.
  7. 7.Do not opt for digital contracts if not familiar with computers.
  8. 8.Do not share trading passwords with anyone.
  9. 9.Do not fall prey to fixed or guaranteed return schemes.
  10. 10.Do not fall prey to fraudsters luring you via emails or SMS promising huge profits.
  11. 11.Do not follow herd mentality for investments. Seek expert and professional advice.

Additionally, investors may refer to DOs and DON’Ts issued by Market Infrastructure Institutions (MIIs) on their respective websites from time to time.

7. Grievance Redressal Mechanism

1Investor Complaint / Grievances

Investor can lodge complaint / grievance against the stock broker in the following ways:

Mode of filing complaint with stock broker: Investor can 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 21 days from the receipt of the grievance.

Mode of filing complaint with Stock Exchanges:
  • SCORES 2.0 – SEBI’s centralized web-based grievance redressal system (https://scores.sebi.gov.in)
  • Emails to designated email IDs of the respective Exchange
Two-level review for complaint / grievance:
  • First review done by Designated Body / Exchange
  • Second review done by SEBI
2Online Dispute Resolution (ODR)If the investor is not satisfied with the resolution provided by the Market Participants, the investor may file the complaint / grievance on the SMARTODR platform for resolution through online conciliation or arbitration.
3Steps in ODR Process
  1. Investor to approach the Market Participant for redressal.
  2. If not satisfied, investor may:
    • Escalate complaint on SEBI SCORES portal
    • File complaint on SMARTODR platform
  3. Relevant MII reviews and endeavors resolution within 21 days.
  4. If unresolved, matter is referred for conciliation.
  5. Conciliation to be completed within 21 days (extendable by 10 days with consent).
  6. If conciliation fails, matter may be referred for arbitration.
  7. Arbitration to be completed 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 the Stock Exchange for the benefit of investors, in case a stock broker is declared as a defaulter:

  • Circular is issued to inform about declaration of the Stock Broker as Defaulter.
  • Information of defaulter stock broker is disseminated on the Stock Exchange website.
  • Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within the 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 the Stock Exchange website for information of investors:

  • Norms for eligibility of claims for compensation from the Investor Protection Fund (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 cases of default by brokers.
  • Claim processing policy against Defaulter / Expelled members.
  • List of Defaulter / Expelled members and public notices issued.