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
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
Complaints Resolution Process at Stock Exchange explained graphically:
Timelines for complaint resolution process at Stock Exchanges against stock brokers
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
- 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) @https://scores.gov.in/scores/Welcome.html
Investor Charter – Depository Participant
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
- 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
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
for the Activity/ Service
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