Investor Charter for SB

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 ofthe person handling your account, as well as information about the firm itself.
  • Receive complete information about the risks, obligations, and costs of anyinvestment before investing.
  • Receive recommendations consistent with your financial needs and investmentobjectives.
  • 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 restrictionsor 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 promptattention 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 ofclient.
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:

DOs

DON’Ts
  1. Read all documents and conditions being agreed before signing the account opening form.
  2. Receive a copy of KYC, copy of account opening documents and Unique Client Code.
  3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
  4. Receive all information about brokerage, fees and other charges levied.
  5. Register your mobile number and email ID in your trading, demat and bank accounts to getregular alerts on your transactions.
  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.
  7. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within24 hours of execution of trades.
  8. Receive funds and securities / commodities on time within 24 hours from pay-out.
  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.
  10. Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per theoption given by the client (30 or 90 days).
  11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.
  1. Do not deal with unregisteredstock broker.
  2. Do not forget to strike off blanks in your account opening and KYC.
  3. Do not submit an incomplete account opening and KYC form.
  4. Do not forget to inform anychange in information linked to trading account and obtain confirmation of updation in thesystem.
  5. 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 stockbroker.
  6. 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. Do not opt for digital contracts, if not familiar with computers.
  8. Do not share tradingpassword.
  9. Do not fall prey to fixed / guaranteed returns schemes.
  10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising hugeprofits.
  11. 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.

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 thestock broker. Order for debit is issued immediately or as per the directions given inGRC 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 to the 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 brokerdefaults:

  • 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 invitingclaims within specified period.
  • Intimation to clients of defaulter stock brokers via emails and SMS for facilitatinglodging 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