Investor Charter for Stock Exchanges
Summary
This circular mandates Recognised Stock Exchanges to disclose an updated Investor Charter on their websites, incorporating recent developments like SCORES 2.0 and ODR. The directive requires exchanges to amend their bye-laws and report implementation status to SEBI in their Monthly Development Reports. The charter outlines investor rights, grievance redressal mechanisms, and the exchange's vision for transparent and equitable markets. This section outlines investor responsibilities regarding account opening, KYC compliance, and fraud prevention. It details the standard operating procedures for handling claims when a Trading Member defaults, including specific timelines for disablement, claim lodgement, and settlement. Finally, it establishes the code of conduct for stock exchanges, mandating adherence to regulations, risk management, and investor protection measures.
Text
SEBI formulated the Investor Charter for Stock exchanges in November 2021 to facilitate investor awareness about activities, grievance redressal, rights, obligations, and guidance.
The Investor Charter is modified to detail services, rights, activities with timelines, Dos and DON'Ts, responsibilities, Code of Conduct, and Grievance Redressal Mechanism.
Stock Exchanges are advised to disclose the Investor Charter on their respective websites.
The circular shall be effective from the date of issuance.
All Recognised Stock Exchanges are advised to take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular.
All Recognised Stock Exchanges are advised to communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.
This Circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors and regulate the securities market.
Mission includes providing transparent, equitable and reliable markets with timely information dissemination and highest standards of investor education and protection.
The Exchange facilitates various products for investors to participate across asset classes viz Equity, Commodities, Derivatives, Debt, Mutual Funds, Government securities etc.
Exchange provides various services to investors electronically through its online platform and physically through the dedicated common Investor Service Centers (ISC).
Complaints can be lodged through SCORES 2.0, Respective Exchange’s web portal, Emails to designated email IDs, or Through SMARTODR.
First review done by Exchange; Second review done by SEBI.
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Source: SecMarx — Investor Charter for Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.