Code of Conduct for Investor Associations (IAs)
Summary
This circular mandates that SEBI-recognized Investor Associations must adhere to an enclosed Code of Conduct and submit annual compliance letters. The Code outlines specific obligations regarding investor education, integrity, record-keeping, and impartiality for these associations. The regulatory authority issues this directive under Section 11(1) of the SEBI Act to protect investor interests.
Text
every SEBI recognised Investor Association shall submit a letter of compliance with this code of conduct every year in the first week of April for the preceding financial year and also along with the application for renewal of recognition.
The main objective of any IA shall be i. To educate the investors ii. To Create awareness among investors iii. To protect the interest of the investors
The Association shall disclose its objectives and limitations if any, to all its members.
The Association shall observe the highest standard of honesty, integrity and fairness in conducting its affairs and discharging its duties to the investors and regulatory authorities.
The Association shall be manned by people with appropriate level of knowledge, competency, skill and experience.
The Association shall establish and maintain adequate infrastructural facility to be able to discharge services to the investors adequately.
The Association shall abide by the provisions of the guidelines issued by SEBI from time to time.
The Association shall update themselves with the latest developments including the regulatory changes in the securities market and disseminate the same to the investors
The Association shall be impartial and professional in their approach and shall ensure that the conduct of its committee does not bring any discredit to the Board at any point of time.
The Association shall ensure that all the records are properly maintained and documented and the record keeping is backed by operation manuals.
The Association shall not make any untrue statement or suppress any material fact in documents, reports or information furnished to the Board.
The Association shall ensure that only members of the executive committee/ governing board represent the IA for meetings / any representation to the Board.
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Source: SecMarx — Code of Conduct for Investor Associations (IAs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.