Publishing of Investor Charter and disclosure of Investor Complaints by Portfolio Managers on their websites
Summary
SEBI mandates all registered Portfolio Managers to prominently display the Investor Charter on their websites to enhance investor awareness. Portfolio Managers are required to disclose monthly complaint data, including SCORES complaints, on their websites by the 7th of the succeeding month. The circular also advises providing direct complaint lodging options and links to SCORES on websites and mobile apps, with provisions effective from January 1, 2022. This section outlines specific timelines and disclosure requirements for Portfolio Managers regarding account opening, reporting, and client communications. It details the grievance redressal mechanism, including mandatory registration on SEBI SCORES and contact information for investor assistance. Finally, it enumerates the responsibilities of investors, such as verifying registration status, submitting accurate KYC documents, and understanding investment risks. This section mandates Portfolio Managers to disclose specific complaint data on their websites on a monthly basis. It prescribes a standardized format for reporting investor complaints received from various sources, including direct investors and SEBI SCORES. Additionally,
Text
an investor charter has been prepared by SEBI, which is placed at Annexure-A
All registered Portfolio Managers are advised to bring to the notice of their clients the Investor Charter by prominently displaying on their websites
all Portfolio Managers on a monthly basis shall disclose on their websites, the data pertaining to all complaints including SCORES complaints received by them in the format mentioned in Annexure-B. The information shall be made available by 07th of the succeeding month
the Portfolio Managers are advised to display link/option on their websites and mobile apps so as to enable their clients to lodge complaint with them directly. Additionally, link to SCORES website/ link to download mobile app (SEBI SCORES) may also be provided
The provisions of this circular shall come into effect from January 01, 2022
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 43 of the SEBI (Portfolio Managers) Regulations, 2020
Uploading of PMS account in KRA and CKYC database within 10 days from date of account opening.
Disclosure of whether portfolio manager is registered with SEBI and SEBI registration number at the time of client signing the agreement.
Disclosure about networth of portfolio manager and total AUM in the disclosure document whenever there are any material changes.
Intimation of type of PMS account – discretionary at the time of client signing the agreement.
Intimation of type of PMS account - non discretionary at the time of client signing the agreement.
Intimation to client what discretionary account entails and powers that can be exercised by portfolio manager at the time of client signing the agreement.
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Source: SecMarx — Publishing of Investor Charter and disclosure of Investor Complaints by Portfolio Managers on their websites. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.