SEBI’s Investor Charter- Things to know

The Securities and Exchange Board of India (SEBI) released the Investor Charter on November 17, 2021.

Background

Investor charter was first proposed in Union Budget 2021-2022 with the aim to protect investors from mis-selling of financial products.

About Investor Charter

  • The Investor Charter was released for investors in Indian securities market. It comprises of rights & responsibilities of investors as well as dos & don’ts of investing in securities market.
  • It was published to protect the “interests of investors by enabling them to understand risks involved”.
  • It will also enable the users to invest in a fair, transparent and secure market, as well as to get services in time-bound and efficient manner.
  • The charter will ensure that SEBI-registered intermediaries or regulated entities stick to their investor charters including grievance redressal mechanism.

Rights of Investors

According to Investor Charter, investors will get the right to:

  1. Get fair equitable treatment
  2. Expect redressal of investor grievances filed in ‘Sebi Complaints Redress System (SCORES)’ in timely manner.
  3. Get quality services from market infrastructure institutions, recognised by SEBI.

Responsibilities of Investors

Investors will have the responsibilities to:

  1. Deal with SEBI-recognised market infrastructure institutions as well as SEBI-registered regulated entities or intermediaries.
  2. Update their contact details like address, email id, mobile number, nomination and other KYC details.
  3. Ensure grievances are taken up by concerned entities in timebound manner.
  4. Ensure that their accounts are operated for their own benefits only.

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