Disclosure of investor complaints by Stock Brokers

Disclosure of investor complaints by Stock Brokers

Publishing Investor Charter and disclosure of Investor Complaints by Stock Brokers on their websites

  1. In order to facilitate investor awareness about various activities which an investor deals with such as opening of account, KYC and in person verification, complaint resolution, issuance of contract notes and various statements, process for dematerialization/rematerialization etc., SEBI, in consultation with the market participants, has prepared an Investor Charter for Stock Brokers inter-alia detailing the services provided to Investors, Rights of Investors, various activities of Stock Brokers with timelines, DOs and DON’Ts for Investors and Grievance Redressal Mechanism which is placed at Annexure ‘A’.
  2. In this regard, Stock Exchanges are directed to advise Stock Brokers to bring the Investor Charter for Stock Brokers to the notice of their clients (existing as well as new clients) through disclosing the Investor Charter on their respective websites, making them available at prominent places in the office, provide a copy of Investor Charter as a part of account opening kit to the clients, through e-mails/ letters etc.
  3. Additionally, in order to bring about transparency in the Investor Grievance Redressal Mechanism, it has been decided that all the Stock Brokers shall disclose on their respective websites, the data on complaints received against them or against issues dealt by them and redressal thereof, latest by 7th of succeeding month, as per the format enclosed at Annexure ‘B’to this circular.
  4. These disclosure requirements are in addition to those already mandated by SEBI. The provisions of this circular shall come into effect from January 01, 2022.
  5. Stock Exchanges are hereby directed to bring the provisions of this circular to the notice of the Stock Brokers.
  6. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

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