Sebi has revised the investor charter for stock brokers to strengthen financial consumer protection, aiming to improve financial inclusion and literacy.
This came after recent changes in the securities market, including the launch of the Online Dispute Resolution (ODR) platform and the updated SCORES 2.0, Sebi’s centralized grievance redressal system, according to PTI.
The updated charter outlines brokers’ vision, mission, services provided to investors, activities with timelines, investor Dos and Don’ts, and grievance redressal procedures.
It also includes protocols for handling investor claims in case of a trading member default, and mandates brokers to display complaints data on their websites, alongside annual complaint disposal trends.
Sebi requires brokers to inform clients of the charter by publishing it on their websites, making it available in their offices, and providing copies as part of the account opening kit or via email/letters. Brokers must also continue to update complaint data on their websites by the 7th of each following month.
In December 2021, Sebi introduced the investor charter, which detailed services, rights, timelines, complaint resolution processes, and other investor-related activities, aiming to enhance investor awareness across various interactions, including account opening, KYC, complaint resolution, and statement issuance.
