Investor Charter

Investor Charter – Stock Brokers


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.

  • To provide high quality and dependable service through innovation, capacity enhancement and use of
  • 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
  • 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 &
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
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
as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the
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
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
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
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
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
for activity
1 Receipt of
Day of
complaint (C Day).
2 Additional
information sought from the investor, if any, and provisionally forwarded to stock
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
T+15 Working
5 Refer to
Grievance Redressal Committee (GRC), in case of no amicable resolution.
T+16 Working
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
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
9 In case the
stock broker is aggrieved by the GRC order, will provide intention to avail
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
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
order amount shall be released tothe investor after adjusting the amount released as
relief, if any.
Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member
Default of TM/CM
    Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker

  • 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
    specified period.
  • Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of
    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) @

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
    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
services to various market participants – Exchanges, Clearing Corporations, Depository Participants
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 /

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
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

Sr.No. Type of
special circumstances
for the Activity/ Service
  • Depositories to terminate the participation in case a participant no longer meets
    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
any charges for the transfer within 30 days from the date of intimation by way of

7. Dos and Don’ts for Investors

8. Rights of investors

9. Responsibilities of Investors