Investor Charter for Stock Brokers
Summary
This circular mandates the modification of the Investor Charter for Stock Brokers to enhance financial consumer protection and inclusion. It directs Stock Exchanges to ensure brokers disclose the charter to clients via websites, offices, and account kits. Additionally, it requires transparency in grievance redressal through monthly public disclosure of complaint data. This section outlines investor obligations regarding transaction verification, grievance redressal mechanisms, and complaint data disclosure. It details the procedural steps for resolving disputes through stock brokers, exchanges, SEBI SCORES, and Online Dispute Resolution platforms. Additionally, it specifies protocols for handling investor claims in the event of a trading or clearing member default.
Text
it has been decided to modify the investor charter for stock brokers.
Stock Exchanges are directed to advise Stock Brokers to bring the Investor Charter for Stock Brokers to the notice of their clients... through disclosing the Investor Charter on their respective websites, making them available at prominent places in the office, provide a copy... as a part of account opening kit... through e-mails/ letters etc.
all the Stock Brokers shall continue to disclose on their respective websites, the data on complaints received against them or against issues dealt by them and redressal thereof, latest by 7th of succeeding month, as per the format enclosed at Annexure ‘B’ to this circular.
The provisions of this circular shall come into force with immediate effect.
With the issuance of this circular, SEBI, Circular. SEBI/HO/MIRSD/DOP/P/CIR/2021/676 dated December 02, 2021 stands rescinded and Clause 75 of Master Circular for Stock Brokers dated August 09, 2024 stands amended as per this circular.
Stock Exchanges are hereby directed to bring the provisions of this circular to the notice of the stock brokers.
This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV 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 markets and shall come into effect from the date of this circular.
To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for 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.
Services provided to Investors by stockbrokers include Execution of trades, Issuance of Contract Notes, Issuance of intimations regarding margin due payments, Facilitate execution of early pay-in obligation instructions, Periodic Settlement of client’s funds, Issuance of retention statement of funds, Risk management systems, Facilitate client profile changes, Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars, Provide a copy of Rights & Obligations document, Communicating Most Important terms and Conditions (MITC), Redressal of Investor’s grievances.
Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information).
Receive complete information about the risks, obligations, and costs of any investment before investing.
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Source: SecMarx — Investor Charter for Stock Brokers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.