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
  • 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.
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.
Various activities of Stock Brokers with timelines
DOs and DON’Ts for Investors
S.No. DOs DON’Ts
1 Read all
documents and conditions being agreed before signing the account opening form.
Do not deal with
unregistered stock broker.
2 Receive a copy
of KYC, copy of account opening documents and Unique Client Code.
Do not forget to
strike off blanks in your account opening and KYC.
3 Read the product
/ operational framework / timelines related to various Trading and Clearing &
Settlement
processes.
Do not submit an
incomplete account opening and KYC form.
4 Receive all
information about brokerage, fees and other charges levied.
Do not forget to
inform any change in information linked to trading account and obtain confirmation of
updation
in the system.
5 Register your
mobile number and email ID in your trading, demat and bank accounts to get regular
alerts on
your transactions.
Do not transfer
funds, for the purposes of trading to anyone other than a stock broker. No payment
should be
made in name of employee of stock broker.
6 If executed,
receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory
requirement
as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the
scope
and implications of powers being granted.
Do not ignore
any emails / SMSs received with regards to trades done, from the Stock Exchange and
raise a
concern, if discrepancy is observed.
7 Receive contract
notes for trades executed, showing transaction price, brokerage, GST and STT etc. as
applicable,
separately, within 24 hours of execution of trades.
Do not ignore
any emails / SMSs received with regards to trades done, from the Stock Exchange and
raise a
concern, if discrepancy is observed.
8 Receive funds
and securities / commodities on time within 24 hours from pay-out.
Do not share
trading password.
9 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.
Do not fall prey
to fixed / guaranteed returns schemes.
10 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 (30 or 90 days).
Do not fall prey
to fraudsters sending emails and SMSs luring to trade in stocks / securities promising
huge
profits.
11 In case of any
grievances, approach stock broker or Stock Exchange or SEBI for getting the same
resolved within
prescribed timelines.
Do not follow
herd mentality for investments. Seek expert and professional advice for your
investments.
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 30 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:

Timelines for complaint resolution process at Stock Exchanges against stock brokers
S.No. Type of
Activity
Timelines
for activity
1 Receipt of
Complaint
Day of
complaint (C Day).
2 Additional
information sought from the investor, if any, and provisionally forwarded to stock
broker.
C + 7
Working days.
3 Registration
of the complaint and forwarding to the stock broker.
C+8 Working
Days i.e. T day.
4 Amicable
Resolution.
T+15 Working
Days.
5 Refer to
Grievance Redressal Committee (GRC), in case of no amicable resolution.
T+16 Working
Days.
6 Complete
resolution process post GRC.
T + 30
Working Days.
7 In case
where the GRC Member requires additional information, GRC order shall be completed
within.
T + 45
Working Days.
8 Implementation of GRC Order. On receipt
of GRC Order, if the order is in favour of the investor, debit the funds of the stock
broker. Order for debit is issued immediately or as per the directions given in GRC
order.
9 In case the
stock broker is aggrieved by the GRC order, will provide intention to avail
arbitration
Within 7
days from receipt of order
10 If intention
from stock broker is received and the GRC order amount is upto Rs.20 lakhs
Investor is
eligible for interim relief from Investor Protection Fund (IPF).The interim relief will
be
50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided
after obtaining an Undertaking from the investor.
11 Stock Broker
shall file for arbitration
Within 6
months from the date of GRC recommendation
12 In case the
stock broker does not file for arbitration within 6 months
The GRC
order amount shall be released tothe investor after adjusting the amount released as
interim
relief, if any.
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) @https://scores.gov.in/scores/Welcome.html

Investor Charter – Depository Participant

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 dematerialised 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
https://www.cdslindia.com/DP/dplist.aspx /
https://nsdl.co.in/dpsch.php

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

(1) Basic Services

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

5. Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

(2)For the Multi-level complaint
resolution mechanism available at the Depositories

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

7. Dos and Don’ts for Investors

8. Rights of investors

9. Responsibilities of Investors

Transposition cum dematerialization

In case of transposition-cum-dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.

E-account opening

Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.

Miscellaneous services

Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed..

Complaint Resolution process at Depositories

Dos and Don’ts for Investor

Sr.No. Guidance
1 Always deal with a SEBI registered Depository Participant for opening a demat account.
2 Read all the documents carefully before signing them.
3 Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4
Always make payments to registered intermediary using banking channels.
No payment should be made in name of employee of intermediary.
5
Accept the Delivery Instruction Slip (DIS) book from your DP only (pre- printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips.

Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders.

Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s).

Do not leave your instruction slip book with anyone else.

Do not sign blank DIS as it is equivalent to a bearer cheque.
6
Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in
system
7 Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8 Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9
Do not share password of your online trading and demat account with
anyone.
10
Do not share One Time Password (OTP) received from banks, brokers, etc.
These are meant to be used by you only.
11 Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12 Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13
If you have any grievance in respect of your demat account, please write to
designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14
Keep a record of documents signed, DIS issued and account statements
received.
15 As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16 Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17 Register for Depository's internet based facility or download mobile app of the depository to monitor your holdings.
18
Ensure that, both, your holding and transaction statements are received
periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19 Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20 Beware of assured/fixed returns.

Dos and Don’ts for Investor

  • Receive a copy of KYC, copy of account opening documents.
  • No minimum balance is required to be maintained in a demat account.
  • No charges are payable for opening of demat accounts.
  • If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time.
  • You can open more than one demat account in the same name with single DP/ multiple DPs.
  • Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.
  • Pledge and /or any other interest or encumbrance can be created on demat holdings.
  • Right to give standing instructions with regard to the crediting of securities in demat account.
  • Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.
  • In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
  • Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.
  • Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Responsibilities of Investors

  • Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
  • Provide complete documents for account opening and KYC (Know Your Client). Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
  • Read all documents and conditions being agreed before signing the account opening form.
  • Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS.
  • Always mention the details like ISIN, number of securities accurately.
  • Inform any change in information linked to demat account and obtain confirmation of updation in the system.
  • Regularly verify balances and demat statement and reconcile with trades / transactions.
  • Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account.
  • Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.

Basic Services Demat Account (BSDA)

The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000.

Linkages with Clearing System

For actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.

e-CAS facility

Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.

e-DIS / Demat Gateway

Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.

Online instructions for execution

Internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.