SEBI To review Investor Charter For Stockbrokers, Provide Financial Literacy

SEBI to review investor charter for stockbrokers, provide financial literacy

It has sought comments on the proposal by 17 February

The Securities and Exchange Board of India (SEBI) has proposed to review the investor charter for stockbrokers to boost financial consumer protection and enhance inclusion and financial literacy.

The proposal follows the developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and Scores 2.0, a web-based centralized grievance redressal system.

The modified agreement would include vision, mission and services provided to investors by brokers, brokers’ activities with timelines,

Do’s and Don'ts for investors, grievance redressal mechanism and handling investors’ claims in case of default of a trading member. It would include a format for investor complaints displayed by brokers on their respective websites and annual disposal of grievances.

SEBI has advised brokers to bring the charter to the clients’ notice by disclosing it on their respective websites, displaying them prominently in the office, and offering a copy as a part of the account opening kit to the clients, through e-mails/letters.

The market regulator instructed brokers to disclose on their websites the data on complaints received and issues dealt by the 7th of the succeeding month.

In December 2021, SEBIs issued a charter for brokers detailing the services to investors, their rights, brokers’ activities with timelines and Do’s and Don'ts for grievance redressal.

It was to facilitate awareness about activities an investor deals with, including opening an account, KYC and in-person verification, complaint resolution and issuance of contract notes and statements.