SEBI’s Investor Charter- Things to know
The Securities and Exchange Board of India (SEBI) released the Investor Charter on November 17, 2021.
Background
Investor charter was first proposed in Union Budget 2021-2022 with the aim to protect investors from mis-selling of financial products.
About Investor Charter
- The Investor Charter was released for investors in Indian securities market. It comprises of rights & responsibilities of investors as well as dos & don’ts of investing in securities market.
- It was published to protect the “interests of investors by enabling them to understand risks involved”.
- It will also enable the users to invest in a fair, transparent and secure market, as well as to get services in time-bound and efficient manner.
- The charter will ensure that SEBI-registered intermediaries or regulated entities stick to their investor charters including grievance redressal mechanism.
Rights of Investors
According to Investor Charter, investors will get the right to:
- Get fair equitable treatment
- Expect redressal of investor grievances filed in ‘Sebi Complaints Redress System (SCORES)’ in timely manner.
- Get quality services from market infrastructure institutions, recognised by SEBI.
Responsibilities of Investors
Investors will have the responsibilities to:
- Deal with SEBI-recognised market infrastructure institutions as well as SEBI-registered regulated entities or intermediaries.
- Update their contact details like address, email id, mobile number, nomination and other KYC details.
- Ensure grievances are taken up by concerned entities in timebound manner.
- Ensure that their accounts are operated for their own benefits only.
Month: Current Affairs - November, 2021