SEBI has updated its “Investor Charter” to improve investor protection, market transparency, and confidence in the securities market. Key updates include the assurance of confidentiality for investor information and the right to exit from market products at fair terms. SEBI has enhanced the grievance redressal and dispute resolution processes through the launch of SCORES 2.0 and SMART Online Dispute Resolution (ODR) Portal. SCORES 2.0 facilitates direct handling of complaints by SEBI-registered intermediaries and regulated entities, while SEBI reviews complaints at the second level. SMART ODR provides online conciliation and arbitration for dispute resolution. SEBI’s mission is to ensure streamlined procedures, fair treatment, and investor education regarding risks. Investors are encouraged to deal only with SEBI-recognized institutions, update personal details regularly, and promptly address grievances. Additionally, they must be aware of transaction risks, fees, and maintain relevant records. The updated Investor Charter promotes fairness, transparency, and enhanced dispute resolution mechanisms for a more secure and accessible investment environment.
Securities and Exchange Board of India
PR No.33/2024
Empowering Investors through Updated Investor Charter of SEBI
SEBI has updated its “Investor Charter” to enhance investor protection, market transparency, and trust and confidence among investors. Key updates includes ensuring confidentiality of investor information and providing the right to exit at fair and reasonable terms from the securities market related products or services (copy of updated Investor Charter of SEBI enclosed).
Further, SEBI has strengthened the grievance redressal mechanism and alternative dispute resolution mechanism with the launch of SCORES 2.0 and SMART Online Dispute Resolution. In SCORES 2.0, investor complaints are taken up directly with SEBI registered Intermediaries/regulated entities and the designated bodies for First Level review, with SEBI taking up all complaints at the stage of Second Level Review. SMART ODR Portal facilitates online conciliation and online arbitration for resolution of disputes arising in the Indian Securities Market.
For more details on SCORES 2.0 and SMART ODR, please refer to SEBI Circular dated September 20, 2023 (Link: https://www.sebi.gov.in/legal/circulars/sep‑ 2023/red ressal-of-i nvestor-grievances-th rough-the-sebi-com plaint-red ressal-scoresplatform-and-linking-it-to-online-dispute-resolution-platform 77159. html) and SEBI Master Circular dated December 20, 2023 (Link: https://www.sebi.gov.in/legal/mastercirculars/dec-2023/master-circular-for-online-resolution-of-disputes-in-the-i ndiansecurities-market 80236. html).
Mumbai
December 06, 2024
INVESTOR CHARTER
OUR VISION
To protect the interests by enabling them to understand the risks involved and invest in fair, transparent, secure market, and to get services in a timely and efficient manner.
OUR MISSION
- 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 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.
- 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 Market Infrastructure Institutions/ 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 recognized Market Infrastructure Institutions and SEBI registered intermediaries/regulated entities/ Asset Management Companies including right to exit at fair and reasonable terms from the securities market related product or service and avail Online Dispute Resolution mechanism for the disputes, if any, arising therefrom.
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.
