𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐂𝐡𝐚𝐫𝐭𝐞𝐫 𝐟𝐨𝐫 𝐒𝐭𝐨𝐜𝐤 𝐁𝐫𝐨𝐤𝐞𝐫𝐬

SEBI has recently issued the revised Investor Charter for Stock Brokers (SBs). The revised charter is designed to improve financial consumer protection, transparency, and grievance redressal mechanisms. It reflects recent regulatory advancements, including:
a) The introduction of the ODR platform for faster resolution of investor disputes.
b) The implementation of SCORES 2.0, a web-based system for investor complaints managed by SEBI.
c) A broader push toward financial inclusion, financial literacy, and investor protection.

𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐂𝐡𝐚𝐫𝐭𝐞𝐫 𝐟𝐨𝐫 𝐒𝐭𝐨𝐜𝐤 𝐁𝐫𝐨𝐤𝐞𝐫𝐬 𝐰𝐨𝐮𝐥𝐝 𝐢𝐧𝐜𝐥𝐮𝐝𝐞:

𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐑𝐢𝐠𝐡𝐭𝐬 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐌𝐞𝐚𝐬𝐮𝐫𝐞𝐬
a) SBs must disclose investor grievance data on their websites by the 7th of every month.
b) right to receive a copy of the Rights & Obligations document, the Most Important Terms & Conditions, retention statement of funds at the time of settlement, account statements and clear disclosures on fees, margins, and risks.
c) Receive complete information about the risks, obligations of investment, copies of all policies.
d) In case of broker defaults, be compensated from the Exchange IPF.
e) Get warnings for trading in securities under surveillance
f) Brokers must facilitate grievance redressal through internal compliance officers and escalation channels.
g) Do’s and Don’ts for investors

𝐃𝐞𝐟𝐢𝐧𝐞𝐝 𝐓𝐢𝐦𝐞𝐥𝐢𝐧𝐞𝐬 𝐟𝐨𝐫 𝐒𝐭𝐨𝐜𝐤 𝐁𝐫𝐨𝐤𝐞𝐫𝐬
h) KYC & Onboarding: KYC must be updated in the KRA system within three working days of account opening.
i) Order Execution & Contract Notes: Orders must be executed immediately, and contract notes issued within 24 hours of trade execution.
j) Margin Intimations & Funds Settlement: Brokers must notify clients of margin dues by end of the trading day (T-day) and settle client funds on the first Friday or Saturday of the month/quarter, as per exchange schedules.
k) Complaint Resolution: Investor grievances must be addressed within 21 calendar days from receipt.

𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐆𝐫𝐢𝐞𝐯𝐚𝐧𝐜𝐞 𝐑𝐞𝐝𝐫𝐞𝐬𝐬𝐚𝐥
a) Investors can lodge complaints with brokers directly, through SEBI SCORES 2.0, or escalate disputes via the SMARTODR platform for conciliation and arbitration.
b) If the broker defaults, investors may seek compensation from the Exchange IPF.
c) SBs must disclose a detailed summary of complaints and resolutions on their websites, as outlined in Annexure B.

SBs are required to publish the Investor Charter on their websites and display it prominently in their offices.
b) Provide a copy of the Investor Charter to all new and existing clients via email or physical distribution.
c) Ensure compliance with SEBI’s enhanced transparency and disclosure norms with immediate effect.

Readers can share their views with Regstreet Law Advisors at info@regstreetlaw.com.