Investment in Shares / Sceurities- Investor Rights & Obligations

Investor’s Rights

Right to

• Get Unique Client Code (UCC) allotted.
• Get a copy of KYC and other documents executed.
• Get order of trading of shares executed in his/her Unique Client Code only.
• Get order of trading of shares placed as per terms and conditions agreed to between broker and investor.
• Get best price.
• Get contract note for trades executed.
• Get the details of charges levied.
• Receive funds and securities on time.
• Get shares through auction where delivery is not received.
• Receive statement of accounts from trading member.
• Ask for settlement of accounts.

Right for redressal against

• Fraudulent price
• Unfair brokerage
• Delays in receipt of money or shares
• Investor unfriendly companies

Rights to Remedies

• To take up complaint against a member with the Exchange
• To take up complaint against a listed company
• To file arbitration against a member, if there is dispute
• To challenge the arbitration award before a court of law
• To file class action suit against the company.

Investor’s Obligations

Obligation to

• Possess a valid contract or purchase/sale note.
• Deliver securities with valid documents and proper signatures.
• Execute Know Your Client (KYC) documents and provide supporting documents.
• Understand the voluntary conditions being agreed with the member.
• Understand the rights given to the Members.
• Read Risk Disclosure Document.
• Understand the product and operational framework and deadlines.
• Pay margins.
• Pay funds and securities for settlement on time.
• Verify details of trades.
• Verify bank account and Depositary Participant (DP) account for funds and securities movement.
• Review contract notes and statement of account.

The obligation to ensure

• Payment on time
• Delivery of shares on time
• Despatch of securities for transfer to the company on time
• Securities purchased are received on the Client’s beneficiary account.
• Dealing only with SEBI registered trading members and sub-brokers

Obligation Towards Remedies

• Take up complaints within a reasonable time
• Complaint to be supported by appropriate documents
• Provide additional information when called for
• To participate in dispute resolution meetings