Sebi creates investor charter to protect interests of investors

In an effort to protect the interests of investors, Sebi has come up with investor charter to help understand the risks involved. This will help investors invest in a fair, transparent, secure market and get services in a timely and efficient manner.

The charter includes rights and responsibilities of investors and dos and don’ts of investing in securities market. The rights include getting fair and equitable treatment, expecting redressal of investor grievances filed in SCORES in a time bound manner. It also includes getting quality services from Sebi recognized market infrastructure institutions and Sebi registered intermediaries, regulated entities and asset management companies.

“Redressal of investor grievances is an important measure towards investor protection,” Sebi said. “A mechanism has been established whereby all Sebi regulated intermediaries and entities will have to disclose average time taken for redressal of investor grievances received by them, on their respective websites in a format specified by Sebi starting from January 2022.”

The regulator says investors have the responsibility to deal with Sebi-recognized market infrastructure institutions and Sebi-registered intermediaries, regulated entities only. “Update their contact details such as address, mobile number, email ID, nomination and other KYC details in case of any changes. Ensure grievances are taken up by concerned entities within a stipulated period of time and ensure that their accounts are operated only for their own benefit.”

The charter states that investors should read and understand documents carefully before investing; know about investor grievance-redressal mechanism; know the risks involved before investing; and keep track of account statements and bring to notice of concerned stock exchange, intermediary, AMC any discrepancy that may be noted.

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Furthermore, it warns investors against making payments in cash while making any investment in the securities market, beyond the prescribed limit. It advises investors not to share critical information such as account details and passwords with anyone.