Investor Charter

INVESTOR CHARTER FOR STOCK BROKERS:

Vision

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.

Mission

To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
To establish and maintain a relationship of trust and ethics with the investors.
To observe highest standard of compliances and transparency.
To always keep ‘protection of investors’ interest’ as goal while providing service.
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

Execution of trades on behalf of investors.
Issuance of Contract Notes.
Issuance of intimations regarding margin due payments.
Facilitate execution of early pay-in obligation instructions.
Settlement of client’s funds.
Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
Issuance of retention statement of funds.
Risk management systems to mitigate operational and market risk.
Facilitate client profile changes in the system as instructed by the client.
Information sharing with the client w.r.t. exchange circulars.
Redressal of Investor’s grievances.

Rights of Investors

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.
Receive a copy of all completed account forms and rights & obligation document.
Receive a copy of ‘Most Important Terms & Conditions’ (MITC).
Receive account statements that are accurate and understandable.
Understand the terms and conditions of transactions you undertake
Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.
Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.
Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.
Close your zero balance accounts online with minimal documentation.
Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account.
Not be discriminated against in terms of services offered to equivalent clients
Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place.
In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place.
Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence.
Get warnings on the trading systems while placing orders in securities where surveillance measures are in place.
Get access to products and services in a suitable manner even if differently abled.
Get access to educational materials of the MIIs and brokers.
Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms.
Deal with one or more stockbrokers of your choice without any compulsion of minimum business.
Have access to the escalation matrix for communication with the broker.
Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

Various activities of Stock Brokers with timelines

S.No.	Activities	Expected Timelines
1.	KYC entered into KRA System and CKYCR	3 days of account opening
2.	Client Onboarding	Immediate, but not later than one week
3.	Order execution	Immediate on receipt of order, but not later than the same day
4.	Allocation of Unique Client Code	Before trading
5.	Copy of duly completed Client Registration Documents to clients	7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6.	Issuance of contract notes	24 hours of execution of trades
7.	Collection of upfront margin from client	Before initiation of trade
8.	Issuance of intimations regarding other margin due payments	At the end of the T day
9.	Settlement of client funds	First Friday/Saturday of the month/quarter as per Exchange pre-announced schedule
10.	‘Statement of Accounts’ for Funds, Securities and Commodities	Monthly basis
11.	Issuance of retention statement of funds/commodities	5 days from the date of settlement
12.	Issuance of Annual Global Statement	30 days from the end of the financial year
13.	Investor grievances redressal	21 days from the receipt of the complaint

DOs and DON’Ts for Investors

DOs	DON’Ts
Read all documents and conditions being agreed before signing the account opening	Do not deal with unregistered stockbroker.
Receive a copy of KYC, copy of account opening documents and Unique Client Code.	Do not forget to strike off blanks in your account opening and KYC.
Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.	Do not submit an incomplete account opening and KYC form.
Receive all information about brokerage, fees and other charges levied.	Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.	Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.	Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.	Do not opt for digital contracts, if not familiar with computers.
Receive funds and securities / commodities on time within 24 hours from pay-out.	Do not share trading password.
Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.	Do not fall prey to fixed / guaranteed returns schemes.
Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90days).	Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. Retain documents for trading activity as it helps in resolving disputes, if they arise.	Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

Additionally, Investors may refer to Dos and Don’ts issued by MIIs on their respective websites from time to time.

Grievance Redressal Mechanism

The process of investor grievance redressal is as follows:

Investor complaint/Grievances	Investor can lodge complaint/grievance against stock broker in the following ways: Mode of filing the complaint with stock broker Investor can approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 21 days of the receipt of the grievance. Mode of filing the complaint with stock exchanges SCORES 2.0 (a web based centralized grievance redressal system of SEBI) (https://scores.sebi.gov.in) Two level review for complaint/grievance against stock broker: First review done by Designated body/Exchange Second review done by SEBI Emails to designated email IDs of Exchange
Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration	If the Investor is not satisfied with the resolution provided by the Market Participants, then the Investor has the option to file the complaint/grievance on SMARTODR platform for its resolution through online conciliation or arbitration.
Steps to be followed in ODR for Review, Conciliation and Arbitration	Investor to approach Market Participant for redressal of complaint If investor is not satisfied with response of Market Participant, he/she has either of the following 2 options: May escalate the complaint on SEBI SCORES portal. May also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavor to resolve the matter between the Market Participant and investor within 21 days. If the matter could not be amicably resolved, then the matter shall be referred for conciliation. During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator with consent of the parties to dispute. If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days with consent of the parties to dispute.

Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)

Default of TM/CM

Following steps are carried out by Stock Exchange for benefit of investor, in case stockbroker defaults:

Circular is issued to inform about declaration of Stock Broker as Defaulter.
Information of defaulter stock broker is disseminated on Stock Exchange website.
Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period
Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.

Following information is available on Stock Exchange website for information of investors:

Norms for eligibility of claims for compensation from IPF
Claim form for lodging claim against defaulter stock broker.
FAQ on processing of investors’ claims against Defaulter stock broker.
Provision to check online status of client’s claim.
Standard Operating Procedure (SOP) for handling of claims of investors in the cases of default by brokers.
Claim processing policy against defaulter/expelled members.
List of defaulter/expelled members and public notice issued.

INVESTOR CHARTER FOR DEPOSITORIES AND DEPOSITORY PARTICIPANTS (Annexure – A):

Vision

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.

Mission

To hold securities of investors in dematerialized 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.

Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants – Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link [https://www.cdslindia.com/DP/dplist.aspx].

Description of services provided by the Depository through Depository Participants (DPs) to investors

Basic Services

S.No.	Brief about the Activity / Service	Expected Timelines for processing by the DP after receipt of proper documents
1.	Dematerialization of securities	7 days
2.	Rematerialization of securities	7 days
3.	Mutual Fund Conversion / Destatementization	5 days
4.	Re-conversion / Restatementisation of Mutual fund units	7 days
5.	Transmission of securities	7 days
6.	Registering pledge request	15 days
7.	Closure of demat account	30 days
8.	Settlement Instruction	For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day. Note: ‘T’ refers ‘Trade Day’

Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include

S.No.	Type of Activity /Service	Brief about the Activity / Service
1.	Value Added Services	Depositories also provide value added services such as Basic Services Demat Account (BSDA) TPIN facility to authorise debits Transposition cum dematerialization Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.
2.	Consolidated Account statement(CAS)	CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3.	Digitalization of provided services by the depositories	Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: E-account opening Online instructions for execution e-DIS / Demat Gateway e-CAS facility Miscellaneous services

S.No.

Type of Activity /Service

Brief about the Activity / Service

Value Added Services

Depositories also provide value added services such as

Basic Services Demat Account (BSDA)
TPIN facility to authorise debits
Transposition cum dematerialization
Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.

Consolidated Account statement(CAS)

CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).

Digitalization of provided services by the depositories

Depositories offer below technology solutions and e-facilities to their demat account holders through DPs:

E-account opening
Online instructions for execution
e-DIS / Demat Gateway
e-CAS facility
Miscellaneous services

Details of Grievance Redressal Mechanism

The Process of investor grievance redressal

Investor Complaint/ Grievances

Investor can lodge complaint/ grievance against the Depository/DP in the following ways:

Electronic mode-
- SCORES 2.0 (a web based centralized grievance redressal system of SEBI)
- Respective Depository’s web portal dedicated for the filing of compliant[https://www.cdslindia.com/Footer/grievances.aspx]
- Emails to designated email IDs of Depository [complaints@cdslindia.com]
Offline mode

The complaints/ grievances lodged directly with the Depository shall be resolved within 30 days.

Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration

If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/grievance on SMARTODR platform for its resolution through by online conciliation or arbitration.

Steps to be followed in ODR for Review, Conciliation and Arbitration

– Investor to approach Market Participant for redressal of complaint
– If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal.
– Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.
– Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days.
– If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation.
– During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator.
– If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.
– The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.

Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

S.No.	Type of special circumstances	Timelines for the Activity / Service
1.	Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Dos and Don’ts for Investors

For Do’s and Don’ts please refer to the link.

Rights of investors

For rights, please refer to the link.

Responsibilities of Investors

For responsibilities, please refer to the link.

Code of Conduct for Participants

For responsibilities, please refer to the link.

Investor Charter