Investor Charter for Depositories and Depository Participants
Summary
SEBI issues a circular mandating Depositories and Depository Participants to publish an updated Investor Charter on their websites. The charter details services, timelines, investor rights, responsibilities, and grievance redressal mechanisms including SCORES 2.0 and ODR. Recognised Depositories must amend bye-laws and report implementation status to SEBI. This section outlines the Online Dispute Resolution (ODR) process, including steps for conciliation and arbitration via the SMARTODR platform. It details specific timelines for dispute resolution by Market Intermediary Intermediaries (MIIs), conciliators, and arbitrators. Additionally, it provides guidance on investor dos and don'ts, rights regarding account management, and procedures for terminating Depository Participant services. This section outlines the residual rights of eligible investors, including e-voting and indemnification, alongside their responsibilities regarding account opening and fraud prevention. It establishes the Code of Conduct for Depositories, mandating compliance with laws, risk management, and investor protection measures. Furthermore, it details the extensive Code of Conduct for Participants, covering p
Text
In order to facilitate investor awareness about various activities such as dematerialization/rematerialization of securities, transmission of securities, settlement instruction, consolidated account statement, grievance redressal mechanism etc., SEBI in November 2021 has formulated the Investor Charter for Depositories and Depository Participants (DPs) containing the information for investors on aforesaid issues and advised Depositories to disclose the same on their respective websites.
In view of the recent developments in the securities market including introduction of Online Dispute Resolution (ODR) platform and SCORES 2.0, it is felt necessary to modify the Investor Charter for Depositories and DPs, inter-alia, detailing the services provided to Investors, Rights of Investors, various activities of Depository through DPs with timelines, Dos and DON’T’s for Investors, Responsibilities of Investors, Code of Conduct for Depositories and DPs and Grievance Redressal Mechanism which is placed at Annexure.
In this regard, Depositories are advised to publish Investor Charter on their websites. Further, Depositories should ask DPs to bring to the notice of their clients (existing as well as new clients) through disclosing the Investor Charter on their respective websites, provide a copy of Investor Charter as a part of account opening kit to the clients, through emails/letters etc.
The circular shall be effective from the date of issuance.
take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular;
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 in securities and to promote the development of, and to regulate the securities market.
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.
To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors. To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them. To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.
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Source: SecMarx — Investor Charter for Depositories and Depository Participants. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.