Investor Charter – Stock Brokers
1. 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.
2. 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.
3. Services Provided to Investors by Stock Brokers
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.
Periodic Settlement of client’s funds.
Issuance of retention statement of funds at the time of settlement.
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. relevant Market Infrastructure Institutions (MII) circulars.
Provide a copy of Rights & Obligations document to the client.
Communicating Most Important Terms and Conditions (MITC) to the client.
Redressal of Investor’s grievances.
4. 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 / compliance team / dedicated grievance redressal team 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.
5. Various activities of Stock Brokers with timelines
| S.No. | Activity | Expected Timeline |
|---|---|---|
| 1 | KYC entered into KRA System and CKYCR | 3 working 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 preannounced 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 calendar days from the receipt of the complaint |
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6. Dos and Don'ts for Investors
Dos:
Read all documents and conditions being agreed before signing the account opening form.
Receive a copy of KYC, copy of account opening documents and Unique Client Code.
Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
Receive all information about brokerage, fees and other charges levied.
Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI). However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting DDPI, carefully examine the scope and implications of powers being granted.
Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades.
Receive funds and securities/commodities on time, as prescribed by SEBI or exchange from time to time.
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.
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 (Monthly or Quarterly).
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.
Don'ts:
Do not deal with unregistered stock broker.
Do not forget to strike off blanks in your account opening and KYC.
Do not submit an incomplete account opening and KYC form.
Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name employee of stock broker.
Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
Do not opt for digital contracts, if not familiar with computers.
Do not share trading password.
Do not fall prey to fixed / guaranteed returns schemes.
Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
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.
7. Grievance Redressal Mechanism
The process of investor grievance redressal is as follows:
| S.No. | Activity | Details |
|---|---|---|
| 1 | Investor complaint/Grievances |
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: i. SCORES 2.0 (a web-based centralized grievance redressal system of SEBI) Two level review for complaint/grievance against stock broker:
|
| 2 | 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. |
| 3 | Steps to be followed in ODR for Review, Conciliation and Arbitration |
|
8. 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.
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
FAQs
• It outlines the rights of investors as well as stockbrokers.
• It ensures transparency in fees, services, grievance redressal and timelines.
• Brokers are expected to deliver prompt services, accurate trade confirmations and timely statements.
• It builds investor confidence by holding brokers accountable to a standard code of conduct.
At AUM Securities, we follow the Investor Charter strictly, ensuring you get reliable, ethical service from a trusted stockbroker near you.
• Look for brokers registered with SEBI and listed on recognised exchanges like NSE and BSE.
• Visit their website or office and ask directly if they adhere to the Investor Charter.
• Check whether they display the Investor Charter publicly—most ethical brokers do.
• Review their client feedback and how they handle service commitments and complaints.
With AUM Securities, you don’t have to search far for a compliant stockbroker near you; we proudly follow all Investor Charter norms for your peace of mind.
• Opening and servicing trading and demat accounts within defined turnaround times.
• Sending trade confirmations, contract notes, and account statements promptly.
• Educating clients about risks, rights, and market practices through accessible resources.
• Handling client grievances swiftly and transparently.
AUM Securities ensures that all services under the Investor Charter are delivered consistently, making us a responsible stockbroker near you.
• Monthly demat account statements are sent if there's any transaction in the account.
• A quarterly statement is sent even if no trades occurred during the period.
• Contract notes are issued within 24 hours of every trade, as per regulations.
• Annual reports may also be shared, summarising account activity and holdings.
At AUM Securities, your statements are timely, clear and always aligned with the SEBI guidelines.
• Ensure they are SEBI-registered and have clear policies for trades, charges, and disputes.
• Look for real-time reporting of trades and immediate communication of charges.
• Check how they handle complaints, feedback, and investor queries.
• Ask about turnaround times for account opening, closure, and service requests.
AUM Securities values trust and integrity, offering you a dependable experience when you are looking for a reliable stockbroker near you who prioritises investors.
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ATTENTION INVESTORS!
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Beware of guaranteed returns:
Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms. -
Do not keep funds idle:
Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms. -
Check account settlements:
Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: https://www.nseindia.com/invest/about-defaulter-section. -
No direct security transfers:
Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client. -
Keep contact details updated:
Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly. -
Verify trades regularly:
Don't ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith. -
Review weekly statements:
Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy. -
Avoid unauthorized transfers:
Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.”