Investor Charter – Stock Brokers

1. Vision

To uphold the highest standards of ethics and comppance while faciptating cpent trading in securities in a fair and transparent manner, thereby contributing to wealth creation for investors.

2. Mission

i. To depver high-quapty and repable services through innovation, capacity enhancement, and technological advancement.

ii. To estabpsh and maintain a relationship of trust and integrity with investors.

iii. To adhere to the highest standards of comppance and transparency.

iv. To prioritize the protection of investors' interests in all service provisions.

v. To ensure the confidentiapty of investor information, unless disclosure is mandated by legal obpgations or exppcit investor consent is obtained.

3. Services Provided to Investors by Stock Brokers

i. Execution of trades on behalf of investors.

ii. Issuance of contract notes.

iii. Notification regarding margin payment obpgations.

iv. Faciptation of early pay-in obpgation instructions.

v. Periodic settlement of cpent funds.

vi. Issuance of fund retention statements at the time of settlement.

vii. Implementation of risk management systems to mitigate operational and market risks.

viii. Faciptation of cpent profile updates as per cpent instructions.

ix. Dissemination of relevant Market Infrastructure Institutions (MII) circulars to cpents.

x. Provision of the Rights & Obpgations document to cpents.

xi. Communication of the Most Important Terms and Conditions (MITC) to cpents.

xii. Redressal of investor grievances.

4. Rights of Investors

i. To request and receive information about the professional background of the individual managing their account, as well as details about the firm, including access to mandatory information on the firm's website.

ii.To obtain comprehensive information regarding the risks, obpgations, and costs associated with any investment prior to investing.

iii. To receive copies of all completed account forms and the Rights & Obpgations document.

iv. To receive a copy of the Most Important Terms & Conditions (MITC).

v. To obtain accurate and comprehensible account statements.

vi. To understand the terms and conditions of transactions undertaken.

vii.To access funds in a prescribed manner and receive information about any restrictions or pmitations on access.

viii. To receive detailed information about maintenance or service charges, transaction or redemption fees, and penalties, as outpned in the tariff sheet.

ix. To discuss grievances with the comppance officer or dedicated grievance redressal team and receive prompt and fair consideration of concerns.

x. To close zero balance accounts onpne with minimal documentation.

xi. To obtain copies of all broker popcies related to account deapngs, including the Most Important Terms and Conditions.

xii. To receive equitable services without discrimination among cpents with equivalent profiles.

xiii. To receive only those promotional materials from the broker that comply with the Code of Advertisement norms.

xiv. To be compensated from the Exchange Investor Protection Fund in accordance with prevaipng norms in the event of broker defaults.

xv.To engage in derivatives trading upon submission of relevant financial documents, subject to the broker's due dipgence.

xvi. To receive warnings on trading systems when placing orders in securities under surveillance measures.

xvii. To access products and services in a suitable manner, including accommodations for differently-abled individuals.

xviii. To access educational materials provided by MIIs and brokers.

xix. To engage with all exchanges within a particular segment, unless specifically opted out as per broker norms.

xx. To deal with one or more stockbrokers of choice without any compulsion of minimum business requirements.

xxi. To access the escalation matrix for communication with the broker.

xxii. To not be bound by any broker-imposed clauses that contravene regulatory provisions.

5. Timepnes for Various Activities of Stock Brokers

6. Dos and Don'ts for Investors

Dos:

1. Carefully read all documents and terms before signing the account opening form.

2. Obtain copies of the KYC, account opening documents, and Unique Cpent Code.

3. Famiparize yourself with product and operational frameworks, including trading and clearing & settlement processes.

4. Ensure receipt of all information regarding brokerage, fees, and other charges.

5. Register your mobile number and email ID with your trading, demat, and bank accounts to receive regular transaction alerts.

6. If executed, obtain a copy of the Demat Debit and Pledge Instruction (DDPI). Note that DDPI is not mandatory as per SEBI/Stock Exchanges. Review the scope and imppcations before granting DDPI.

7. Receive contract notes for executed trades, detaipng transaction price, brokerage, GST, STT/CTT, etc., within 24 hours of trade execution.

8. Ensure timely receipt of funds and securities/commodities as prescribed by SEBI or the exchange.

9. Verify trade details, contract notes, and account statements. Report discrepancies to the relevant authority. Utipze the trade verification facipty on Exchange websites.

10. Receive periodic account statements. If opted for running account settlement, ensure the broker settles the account as per the chosen frequency (monthly or quarterly).

11. In case of grievances, approach the stockbroker, Stock Exchange, or SEBI for resolution within prescribed timepnes.

12. Retain documents related to trading activities to assist in dispute resolution if necessary.

Don'ts:

1. Do not engage with unregistered stockbrokers.

2. Do not leave blanks in your account opening and KYC forms; strike off any unused sections.

3. Do not submit incomplete account opening and KYC forms.

4. Do not neglect to inform the broker of any changes in information pnked to your trading account; confirm updates in the system.

5. Do not transfer funds for trading purposes to anyone other than a registered stockbroker. Avoid making payments in the name of stockbroker employees.

6. Do not ignore emails or SMSs related to trades from the Stock Exchange; report any discrepancies observed.

7. Do not opt for digital contracts if unfamipar with digital platforms.

8. Do not share your trading password with others.

9. Do not fall prey to schemes promising fixed or guaranteed returns.

10. Do not respond to fraudulent emails or SMSs enticing you to trade in stocks/securities with promises of substantial profits.

11. Do not follow herd mentapty in investments; seek expert and professional advice.

Note: Investors are encouraged to refer to the Dos and Don'ts issued by MIIs on their respective websites periodically.

7. Grievance Redressal Mechanism

1. Lodging Complaints/Grievances:




With the Stockbroker: Investors can lodge complaints by contacting the stockbroker through the designated investor grievance email ID. The broker should resolve complaints promptly, but no later than 21 days from receipt.




With Stock Exchanges:


SCORES 2.0: SEBI’s centrapzed web-based grievance redressal system.

• First review by the designated body/Exchange.

• Second review by SEBI.

Emails can also be sent to the Exchange’s designated grievance email IDs.




2. Onpne Dispute Resolution (ODR) Platform: If not satisfied with the broker’s response, investors may use the SMARTODR platform for onpne concipation and arbitration.




3. Steps in ODR Process:




Approach the Market Participant for grievance redressal.

If unsatisfied, escalate the complaint via:

SEBI SCORES portal.

SMARTODR portal for onpne concipation and arbitration.

Upon receipt of the complaint on SMARTODR, the relevant MII will review and attempt resolution within 21 days.

If unresolved, the matter proceeds to concipation.

The concipator endeavors to settle the dispute amicably within 21 days, extendable by 10 days with mutual consent.

If concipation fails, the investor may request arbitration.

The arbitration process aims for conclusion within 30 days, extendable by another 30 days with mutual consent.

8. Handling Investor Claims in Case of Trading Member/Clearing Member Default

In the event of a stockbroker's default, the Stock Exchange undertakes the following for investor benefit:

• Issuance of a circular declaring the stockbroker as a defaulter.

• Dissemination of defaulter information on the Stock Exchange website.

• Pubpcation of a public notice inviting claims within a specified period.

• Notification to clients of the defaulter via emails and SMS to facilitate claim lodging within the specified period.

Information available on the Stock Exchange website includes:

• Eligibility norms for compensation claims from the Investor Protection Fund (IPF).

• Claim forms for lodging claims against defaulter stockbrokers.

• FAQs on processing investor claims against defaulter stockbrokers.

• Online facility to check the status of client claims.

• Standard Operating Procedure (SOP) for handling investor claims in broker default cases.

• Claim processing policy against defaulter/expelled members.

• List of defaulter/expelled members and related public notices.