Indian market regulator SEBI has proposed to change the investor charter created for stock brokers. Its purpose is to increase the safety of investors, make financial information easier and make grief redress more effective.
SEBI has recently introduced new features such as online dispute settlement (ODR) platform and Scores 2.0, so that the complaints of investors can be resolved quickly. Keeping these new changes in mind, the investor charter is being improved further.
In this new charter, it will be clarified what services the brokers will give to investors and how long will it take to complete those services. It will also include the rules and precautions required for investors (DOS and DON’TS), so that they can invest vigilance and wisely in the stock market. In addition, if a brokerage firm is in financial crisis or stops, investors will be given complete information about the disposal of their claims.
SEBI has also proposed that all brokers publish data of investors’ complaints on their website and show how many complaints were filed and how many were resolved throughout the year.
In addition, brokers must ensure that investors learn about this charter. For this, they have to publish it on their website, put it on the main place in their office and at the time of opening the account, investors will have to send a copy of it through email or letter. Also, all brokers will have to update complaints and information about their solution by 7th of every month on their website.
Even earlier, in December 2021, SEBI had issued an investor charter for stock brokers, which clarified the rights of investors, services of brokers, KYC process, account opening rules and grievance redressal process. Now it is being made more effective and useful.
SEBI has sought suggestions on this proposal till 17 February. (With PTI’s input)