SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
TO:
Presidents/Executive Directors
Managing Directors of all
Stock Exchanges
Dear Sir,
SEBI has recently constituted a Committee to look into the sources & utilisation of the Investor Protection Fund/Investor Services Fund. The purpose of the Committee is to bring about uniformity in sources, utilisation & streamline the management of Investor Protection Fund/ Investor Services Fund.
At present, the constitution & management, sources & utilisation of funds with the Investor Protection Fund/Investor Services Fund in various Stock Exchanges is based on norms finalised by the Stock Exchanges. As such, there is neither uniformity nor consistency regarding the functioning of the Investor Protection Fund/Investor Services Fund of the Stock Exchanges. Also, the investor centers of the Stock Exchanges are not fully equipped to provide the investors with services including recording & counselling on complaints.
Based on the discussions of the Committee, it is advised that all the Stock Exchanges will open/maintain atleast one service center for the benefit of the public/Investors. However, the major Stock Exchanges are free to open as many investor centers as required. These investor centers will provide the following basic minimum facilities to the investors:
1.The Center will provide 4 financial newspapers with atleast one in the regional language.
2.The Investor Services Center will install computer software(marketed by some vendors) which provide information about Corporates including annual reports, general, financial & other important information. The information will be made available through computers with one master terminal and some dummy terminals through which investors could access this information. Other facilities like copying will be made available to the investors at minimum cost.
3. he Center will provide facilities for receiving/recording investor complaints. Special Staff recruited/deployed by the Exchange for this purpose will register the complaints and provide counselling service to the investors. Status of complaints will be maintained and updated in the computer system of the Center.
4. The Center will provide for other infrastructure facilities such as telephone, photocopier, furniture, sitting space etc.
5.The Investor Service Center will provide published material of the Stock Exchange for the benefit of the investors. It should also provide the prospectus and application forms for the forthcoming public issues.
6.The Center will provide for dummy terminals to display the prices of the scrips listed on the Exchange on realtime basis, to enable investors watch the price movements of the stocks.
7. The Center will maintain a library on relevant laws, financial analysis, market trend analysis etc. for the education of the investors.
It is advised that opening/maintaining of service center(s) must be implemented expeditiously to enable the investors have a forum for recording and counselling of their grievances as well as access financial & other information of Companies, on Government Policies, Rules & Regulations, etc. It is further advised that the major Stock Exchanges should open atleast 5 Investor centers, while other Stock Exchanges will open atleast 3 Investor centers. A list of places where such centers are proposed to be opened be submitted to SEBI immediately. Progress of implementation should be reported to SEBI in the monthly D.O. letters or by way of special letters.
