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Investor Chartor

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
  • To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
  • To establish and maintain a relationship of trust and ethics with the investors.
  • To observe highest standard of compliances and transparency.
  • To always keep ‘protection of investors’ interest’ as goal while providing service.
Service 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
Sl.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
Sl.No DOs DONT's
1 Read all documents and conditions being agreed before signing the account opening form. Do not deal with unregistered stock broker.
2 Receive a copy of KYC, copy of account opening documents and Unique Client Code. Do not forget to strike off blanks in your account opening and KYC.
3 Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. Do not submit an incomplete account opening and KYC form.
4 Receive all information about brokerage, fees and other charges levied. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
5 Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. 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 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. 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 Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
8 Receive funds and securities / commodities on time within 24 hours from pay-out. Do not share trading password.
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. Do not fall prey to fixed / guaranteed returns schemes.
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). Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
11 In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. Do not follow herd mentality for investments. Seek expert and professional advice for your investments.
Investor Charter – Depository Participant

A). Vision

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

B). Mission
  • To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
  • To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
  • To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.
C). Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link https://www.cdslindia.com/DP/dplist.aspx or https://nsdl.co.in/dpsch.php

D). Description of services provided by the Depository through Depository Participants (DP) to investors
1. Basic Services
Sr.No Brief about the Activity / Service Expected Timelines for processing by the DP after receipt of proper documents
1 Dematerialization of securities 7 days
2 Rematerialization of securities 7 days
3 Mutual Fund Conversion / Destatementization 5 days
4 Re-conversion / Restatementisation of Mutual fund units 7 days
5 Re-conversion / Restatementisation of Mutual fund units 7 days
6 Transmission of securities 7 days
6 Registering pledge request 15 days
7 Closure of demat account 30 days
8 Settlement Instruction Depositories to accept physical DIS for pay-in of securities upto 4 p.m and DIS in electronic form upto 6 p.m on T+1 day
2. Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include
Sr.No Type of Activity /Service Brief about the Activity / Service
1 Value Added Services

Depositories also provide value added services such as

  1. Basic Services Demat Account (BSDA)
  2. Transposition cum dematerialization
  3. Linkages with Clearing System
  4. Distribution of cash and non-cash corporate benefits.
2 Consolidated Account statement (CAS) CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3 Digitalization of services provided by the depositories

  1. E-account opening
  2. Online instructions for execution
  3. e-DIS / Demat Gateway
  4. e-CAS facility
  5. Miscellaneous services
E). Details of Grievance Redressal Mechanism
(i). The Process of investor grievance redressal
Sr.No
1 Investor Complaint/ Grievances

Investor can lodge complaint/ grievance against the Depository/DP in the following ways:

  1. Electronic mode -
    • SCORES (a web based centralized grievance redressal system of SEBI)
    • Respective Depository’s web portal dedicated for the filing of compliant NSDL Portal / CDSL Portal
    • Emails to designated email IDs of Depository complaints@cdslindia.com / relations@nsdl.co.in

    The complaints/ grievances lodged directly with the Depository shall be resolved within 30 days

2 Investor Grievance Redressal Committee of Depository If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties, and examining the necessary information and documents.
3 Arbitration proceedings The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).
(ii). For the Multi-level complaint resolution mechanism available at the Depositories
F). Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant
Sr.No Type of special circumstances Timelines for the Activity/ Service
1
  • Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges
  • Participant surrenders the participation by its own wish.
Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.
Dos and Don’ts for Investor
Sr.No Guidance
1 Always deal with a SEBI registered Depository Participant for opening a demat account.
2 Read all the documents carefully before signing them.
3 Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4 Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
5 Accept the Delivery Instruction Slip (DIS) book from your DP only (pre- printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips. Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque.
6 Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
7 Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8 Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9 Do not share password of your online trading and demat account with anyone.
10 Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
11 Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12 Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13 If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14 Keep a record of documents signed, DIS issued and account statements received.
15 As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16 Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17 Register for Depository's internet based facility or download mobile app of the depository to monitor your holdings.
18 Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19 Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20 Beware of assured/fixed returns.
Rights of Investors
  • Receive a copy of KYC, copy of account opening documents.
  • No minimum balance is required to be maintained in a demat account.
  • No charges are payable for opening of demat accounts.
  • If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time.
  • You can open more than one demat account in the same name with single DP/ multiple DPs.
  • Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.
  • Pledge and /or any other interest or encumbrance can be created on demat holdings.
  • Right to give standing instructions with regard to the crediting of securities in demat account.
  • Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP
  • In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
  • Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.
  • Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.
Responsibilities of Investors
  • Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
  • Provide complete documents for account opening and KYC (Know Your Client). Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
  • Read all documents and conditions being agreed before signing the account opening form.
  • Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS.
  • Always mention the details like ISIN, number of securities accurately.
  • Inform any change in information linked to demat account and obtain confirmation of updation in the system.
  • Regularly verify balances and demat statement and reconcile with trades / transactions.
  • Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account.
  • Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
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