Investor Charter

Investor Charter – 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

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

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.
• Receive complete information about the risks, obligations, and costs of any investment before investing.
• Receive recommendations consistent with your financial needs and investment objectives.
• Receive a copy of all completed account forms and agreements.
• Receive account statements that are accurate and understandable.
• Understand the terms and conditions of transactions you undertake.
• Access your funds in a timely 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.
• Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.

Grievance Redressal Mechanism

Level 1 – 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.

Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange.

Complaints Resolution Process at Stock Exchange explained graphically:

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 stock broker 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.

Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI) @ Scores Portal Link

INVESTOR CHARTER FOR DEPOSITORIES AND DEPOSITORY PARTICIPANTS

1. 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.
2. 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.

3. 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 [CDSL DP List].

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

   (1) Basic Services

   Sr. 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	21 days
   8.	Settlement Instruction	Depositories to accept physical DIS for pay-in of securities up to 4 p.m. and DIS in electronic form up to 6 p.m. on T+1 day

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

   Sr. 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)1 Transposition cum dematerialization2 Linkages with Clearing System3 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 services provided by the depositories	Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: E-account opening4 Online instructions for execution5 e-DIS / Demat Gateway6 e-CAS facility7 Miscellaneous services8

5. Details of Grievance Redressal Mechanism
   

   (1) The Process of investor grievance redressal

   1.	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) [Scores Portal Link] Two Level Review for complaint/grievance against DP: - First review done by Designated Body - Second review done by SEBI Respective Depository’s web portal dedicated for the filing of compliant [CDSL Grievances Link] Emails to designated email IDs of Depository [complaints@cdslindia.com] Offline mode The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days.
   2.	Investor Grievance Redressal Committee of Depository	If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.
   3.	Arbitration proceedings	The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).

   (2) For Multi-level complaint resolution mechanism available at the Depositories please refer to link⁹

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

   Sr. 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 21 days from the date of intimation by way of letter/email.

7. Dos and Don’ts for Investors
   

   For Do’s and Don’ts please refer to the link¹⁰

8. Rights of investors
   

   For rights, please refer to the link¹¹

9. Responsibilities of Investors
   

   For responsibilities, please refer to the link¹²

10. Code of Conduct for Participants
    

    For Code of Conduct, please refer to the link¹³