Table of Contents
Investor Charter: Relevance
- GS 2: citizens charters, transparency & accountability and institutional and other measures.
Investor Charter: Context
- SEBI (Securities Exchanges Board of India) has unveiled investor charter, and laid down certain dos and don’ts of investing in Indian securities market.
Investor Charter: Key points
- Investor Charter was first proposed in Union Budget 2021-22 to protect investors from misselling of financial products.
- This charter includes the rights and responsibilities of investors, and dos and don’ts of investing in the securities market.
- The charter has been published to protect the interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner.
- It will also ensure that SEBI-registered intermediaries/ regulated entities adhere to their investor charters, including the grievance redressal mechanism.
Investor’s rights
- Get fair and equitable
- Expect redressal of investor grievances filed in SCORES (Sebi Complaints Redress System) in a timebound manner.
- Get quality services from SEBI-recognised market infrastructure institutions and SEBI-registered intermediaries/ regulated entities/ asset management companies.
Investor’s responsibilities
- Deal with SEBI-recognised market infrastructure institutions and SEBI-registered intermediaries/ regulated entities only.
- Update their contact details such as address, mobile number, email id, nomination and other KYC details in case of any changes.
- Ensure grievances are taken up by concerned entities within a stipulated period of time.
- Ensure that their accounts are operated only for their own benefit.
Do’s for investors
- Read and understand documents carefully before investing.
- Know about investor grievance-redressal mechanism.
- Know the risks involved before investing.
- Keep track of account statements and bring to notice of concerned stock exchange/ intermediary/ AMC any discrepancy that may be noted.
- Know about various fees, charges, margins, premiums, etc., involved in the transactions.
- Preserve relevant transaction-related documents.
Don’ts for investors
- Don’t make payments in cash while making any investment in the securities market, beyond the prescribed limit.
- Don’t share critical information such as account details and passwords with anyone.