Stock broker trading workstation
Investor Charter

Investor Charter — Stock Brokers

A comprehensive guide to investor rights, services, and grievance redressal.

SEBI Registered
INZ000323534
NSE · BSE · MCX
Member across 3 exchanges
CDSL Depository
DP ID 12104000

Vision & Mission

Vision

To follow highest standards of ethics and compliance 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
  1. 1To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
  2. 2To establish and maintain a relationship of trust and ethics with the investors.
  3. 3To observe highest standard of compliance and transparency.
  4. 4To always keep protection of investors' interest as goal while providing service.
  5. 5To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

Services Provided to Investors

  1. 1Execution of trades on behalf of investors.
  2. 2Issuance of contract notes.
  3. 3Issuance of intimations regarding margin due payments.
  4. 4Facilitate execution of early pay-in obligation instructions.
  5. 5Periodic settlement of clients' funds.
  6. 6Issuance of retention statement of funds at the time of settlement.
  7. 7Risk management systems to mitigate operational and market risk.
  8. 8Facilitate client profile changes in the system as instructed by the client.
  9. 9Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars.
  10. 10Provide a copy of Rights & Obligations document to the client.
  11. 11Communicating Most Important Terms and Conditions (MITC) to the client.
  12. 12Redressal of investor's grievances.

Rights of Investors

  1. 1Ask 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 (including website providing mandatory information).
  2. 2Receive complete information about the risks, obligations and costs of any investment before investing.
  3. 3Receive a copy of all completed account forms and rights & obligation document.
  4. 4Receive a copy of "Most Important Terms & Conditions" (MITC).
  5. 5Receive account statements that are accurate and understandable.
  6. 6Understand the terms and conditions of transactions you undertake.
  7. 7Check your funds in a prescribed manner and receive information about any restrictions or limitations on access.
  8. 8Receive complete information about maintenance or service charges, transaction or redemption fees and penalties in form of tariff sheet.
  9. 9Raise your grievances with compliance officer / CEO / director / arbitrator, redressal forum of the firm and receive prompt attention to and fair consideration of your concerns.
  10. 10Clear your own balance accounts online with minimal documentation.
  11. 11Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account.
  12. 12Free documentation services in terms of what is offered to equivalent clients.
  13. 13Get only those advertisement materials from the broker which adhere to code of Advertisement norms in place.
  14. 14In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place.
  15. 15Trade in derivatives after submission of relevant financial documents by the broker subject to brokers' adequate due diligence.
  16. 16Get earnings on the trading systems while placing orders in securities where surveillance measures are in place.
  17. 17Get access to products and services in a suitable manner even if differently abled.
  18. 18Get access to educational materials of the MIIs and brokers.
  19. 19Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms.
  20. 20Deal with one or more stockbrokers of your choice without any compulsion of minimum business.
  21. 21Get access to the escalation matrix for communication with the broker.
  22. 22Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

Various Activities & Expected Timelines

ActivityExpected Timeline
KYC entered into KRA System and CKYC5 working days of account opening
Client onboardingImmediately, but not later than one week
Order executionImmediate on receipt of order, but not later than the same day
Issuance of Unique Client CodeBefore trading
Copy of duly completed Client Registration Documents to clients7 days from the date of upload of Unique Client Code to the Exchange by the Trading member
Issuance of contract notes24 hours of execution of trades
Collection of upfront margin from clientBefore initiation of trade
Issuance of intimations regarding other margin due paymentsAt the end of the day
Settlement of client fundsFirst Friday/Saturday of the month / quarter as per Exchange pre-announced schedule
Statement of accounts for funds, securities and commoditiesMonthly basis
Issuance of retention statement of funds/commodities5 days from the date of settlement
Issuance of Annual Global Statement30 days from the end of the financial year
Investor grievances redressal21 calendar days from the receipt of the complaint

Do's & Don'ts for Investors

Do’s
  • ✓Read all documents and conditions being agreed before signing the account opening form.
  • ✓Receive a copy of KYC, copy of account opening documents and Unique Client Code.
  • ✓Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
  • ✓Review all information about brokerage, fees and other charges levied.
  • ✓Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
  • ✓If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI). However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges; before granting DDPI, carefully examine the scope and implications of powers being granted.
  • ✓Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades.
  • ✓Receive funds and securities/commodities on time, as prescribed by SEBI or exchange from time to time.
  • ✓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.
  • ✓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 (Monthly or Quarterly).
  • ✓In case of any grievances, approach Stock Broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.
  • ✓Retain documents for trading activity as it helps in resolving disputes, if any.
Don’ts
  • ✕Do not deal with unregistered stock broker.
  • ✕Do not forget to strike off blanks in your account opening and KYC forms.
  • ✕Do not submit an incomplete account opening and KYC form.
  • ✕Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
  • ✕Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employees of stock broker.
  • ✕Do not ignore any emails / SMSes received with regards to trades done, from the Stock Exchange and raise a concern if discrepancy is observed.
  • ✕Do not opt for digital contracts, if not familiar with computers.
  • ✕Do not share trading password.
  • ✕Do not fall prey to fixed / guaranteed returns schemes.
  • ✕Do not pay to fraudsters offering assured/guaranteed returns to trade in stocks / securities promising huge profits.
  • ✕Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

Additionally, investors may refer to Dos and Don'ts issued by MIIs on their respective websites from time to time.

Grievance Redressal Mechanism

The process of investor grievance redressal is as follows:

1

Investor complaints / grievances

Investors can lodge a complaint/grievance directly with the stock broker via the designated Investor Grievance e-mail ID. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of receipt. Complaints may also be filed with Stock Exchanges via SCORES 2.0 — the web-based centralised grievance redressal system of SEBI (scores.gov.in), which is reviewed first by the concerned Stock Exchange and then, if needed, by SEBI.

2

Online Dispute Resolution (ODR) platform

If the investor is not satisfied with the resolution provided by the Market Participant, the investor has the option to file the complaint/grievance on the SMARTODR platform for resolution through online conciliation or arbitration.

3

Steps in ODR — review, conciliation and arbitration

Investor approaches the Market Participant for redressal first. If unsatisfied, the investor may escalate on SEBI SCORES and/or file on SMARTODR. Upon receipt on SMARTODR, the relevant MII reviews the matter and endeavours to resolve it within 21 days. If unresolved, the matter is referred for conciliation (target 21 days, extendable by 10 days with consent). If conciliation fails, the investor may request arbitration, to be concluded within 30 days (extendable by 30 days with consent).

Handling of Investor Claims in Case of TM/CM Default

Following steps are carried out by the Stock Exchange for the benefit of investors in case a stock broker defaults:

  1. 1Circular is issued to inform about declaration of Stock Broker as Defaulter.
  2. 2Information of defaulter (contact broker & deponent) published on Stock Exchange website.
  3. 3Public Notice is issued informing declaration of a stock broker as defaulter, and inviting claims within a specified period.
  4. 4Information to clients of the defaulted stock broker to claim any dues within the specified period.

The following information is available on the Stock Exchange website for the benefit of investors:

  1. 1Norms for eligibility criteria for compensation from IPF.
  2. 2Claim form for lodging claim against defaulter stock broker.
  3. 3FAQ on processing of investors' claims against Defaulter Stock Brokers.
  4. 4Provision to check online status of client's claim.
  5. 5Information on SCORES platform regarding the query / claims of investors in the case of default by brokers.
  6. 6Claim processing policy against Defaulted/Expelled members.
  7. 7Contact details for any assistance regarding claims processing.

Investor Charter – Stock Brokers · As per SEBI / Exchange Guidelines