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
i)
To
provide high
quality and
dependable service
through innovation,
capacity enhancement
and use of
technology.
ii)
To
establish and
maintain a
relationship of
trust and
ethics with
the investors.
iii)
To
observe highest standard of compliances
and transparency.
iv)
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
|
S.No. |
Activities |
Expected
Timelines |
|
1. |
KYC entered into KRA System and
CKYCR |
10
days of account opening |
|
2. |
Client
Onboarding |
Immediate,
but not
later than
one week |
|
3. |
Order
execution |
Immediate
on receipt
of order,
but not
later than
the same
day |
|
4. |
Allocation
of Unique
Client Code |
Before
trading |
|
5. |
Copy of duly completed Client
Registration Documents to clients |
7
days from
the date
of upload
of Unique
Client Code to the Exchange by the
trading member |
|
6. |
Issuance
of contract notes |
24
hours of
execution of
trades |
|
7. |
Collection of upfront margin from
client |
Before
initiation of
trade |
|
8. |
Issuance
of intimations regarding
other
margin due payments |
At
the end
of the
T day |
|
9. |
Settlement
of client
funds |
30 days / 90 days for running account
settlement (RAS) as
per the
preference of client.
If consent not given for RAS – within 24
hours of
pay-out |
|
10. |
‘Statement
of Accounts’
for Funds,
Securities and
Commodities |
Weekly
basis (Within
four trading
days of
following week) |
|
11. |
Issuance
of retention
statement of
funds/commodities |
5
days from the date of
settlement |
|
12. |
Issuance
of Annual
Global
Statement |
30
days from the end of
the financial
year |
|
13. |
Investor
grievances redressal |
30
days from
the receipt
of the
complaint |
DOs
and DON’Ts
for Investors
|
DOs |
DON’Ts |
|
1.
Read
all documents
and conditions
being agreed
before signing the account opening
form.
2.
Receive
a copy
of KYC,
copy of
account opening
documents and
Unique Client
Code.
3.
Read the product / operational
framework / timelines
related to
various Trading
and Clearing
& Settlement
processes.
4.
Receive all information about
brokerage, fees and
other charges levied.
5.
Register your mobile number
and email ID in your trading,
demat and bank accounts to get
regular alerts
on your transactions.
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.
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.
8.
Receive
funds and
securities /
commodities on
time within 24 hours from pay-out.
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.
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).
11.
In case of any
grievances, approach stock
broker or Stock Exchange or SEBI for getting
the same resolved
within prescribed
timelines. |
1.
Do not deal with unregistered
stock broker.
2.
Do not forget
to strike
off blanks
in your
account opening
and KYC.
3.
Do not submit an incomplete
account opening
and KYC
form.
4.
Do not forget
to inform
any change in information
linked to trading account and
obtain confirmation
of updation
in the
system.
5.
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.
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.
Do
not
opt
for digital contracts,
if not
familiar with computers.
8.
Do not share
trading password.
9.
Do
not fall
prey to
fixed /
guaranteed returns schemes.
10.
Do not fall prey to fraudsters
sending emails
and SMSs
luring to
trade in
stocks /
securities promising huge profits.
11.
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 to
the 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