Investor Charter

Stock Brokers
Depository Participant

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.
Services 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
S.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
S.No. DOs DON’Ts
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.
Grievance Redressal Mechanism

Level 1 Approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock
broker. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt
of the grievance.
Level 2 Approach the Stock Exchange using the grievance mechanism mentioned at the website of the
respective exchange.
Complaints Resolution Process at Stock Exchange explained graphically:

Timelines for complaint resolution process at Stock Exchanges against stock brokers
S.No. Type of
Activity		 Timelines
for activity
1 Receipt of
Complaint		 Day of
complaint (C Day).
2 Additional
information sought from the investor, if any, and provisionally forwarded to stock
broker.		 C + 7
Working days.
3 Registration
of the complaint and forwarding to the stock broker.		 C+8 Working
Days i.e. T day.
4 Amicable
Resolution.		 T+15 Working
Days.
5 Refer to
Grievance Redressal Committee (GRC), in case of no amicable resolution.		 T+16 Working
Days.
6 Complete
resolution process post GRC.		 T + 30
Working Days.
7 In case
where the GRC Member requires additional information, GRC order shall be completed
within.		 T + 45
Working Days.
8 Implementation of GRC Order. On receipt
of GRC Order, if the order is in favour of the investor, debit the funds of the stock
broker. Order for debit is issued immediately or as per the directions given in GRC
order.
9 In case the
stock broker is aggrieved by the GRC order, will provide intention to avail
arbitration		 Within 7
days from receipt of order
10 If intention
from stock broker is received and the GRC order amount is upto Rs.20 lakhs		 Investor is
eligible for interim relief from Investor Protection Fund (IPF).The interim relief will
be
50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided
after obtaining an Undertaking from the investor.
11 Stock Broker
shall file for arbitration		 Within 6
months from the date of GRC recommendation
12 In case the
stock broker does not file for arbitration within 6 months		 The GRC
order amount shall be released tothe investor after adjusting the amount released as
interim
relief, if any.
Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member
(TM/CM)
Default of TM/CM
    Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker
    defaults:

  • Circular is issued to inform about declaration of Stock Broker as Defaulter.
  • Information of defaulter stock broker is disseminated on Stock Exchange website.
  • Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims
    within
    specified period.
  • Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of
    claims
    within the specified period.
    Following information is available on Stock Exchange website for information of investors:

  • Norms for eligibility of claims for compensation from IPF.
  • Claim form for lodging claim against defaulter stock broker.
  • FAQ on processing of investors’ claims against Defaulter stock broker.
  • Provision to check online status of client’s claim.

Level 3 The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI
on SCORES (a web based centralized grievance redressal system of SEBI) @https://scores.gov.in/scores/Welcome.html

Investor Charter – Depository Participant

1. 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.

2. 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.



3. 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 /
https://nsdl.co.in/dpsch.php

4. 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 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
Depositories offer below technology solutions and e-facilities to their demat account
holders through DPs: 

  1. E-account opening
  2. Online instructions for execution
  3. e-DIS / Demat Gateway
  4. e-CAS facility
  5. Miscellaneous services

5. Details of Grievance Redressal Mechanism

(1) 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:

a. Electronic mode –

  • (i) SCORES (a web based centralized grievance redressal system of SEBI)
  • (ii) Respective Depository’s web portal dedicated for the filing of compliant NSDL
    Portal / CDSL Portal
  • (iii) 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).

(2)For the Multi-level complaint
resolution mechanism available at the Depositories

6. 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.

7. Dos and Don’ts for Investors

8. Rights of investors

9. Responsibilities of Investors