Sebi tweaks investor charter for investment advisers, research analysts to boost financial literacy

Markets regulator Sebi on Monday tweaked the investor charter for investment advisers and research analysts to enhance financial inclusion and financial literacy.

This came in view of the recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0 -- a web-based centralised grievance redressal system of Sebi.

The modified charter includes vision, mission, services provided to investors and details of business transacted by investment advisers (IAs) /research analysts with respect to their investors, according to separate circulars.

Additionally, it includes rights and responsibilities of investors; details of redressal mechanism available to investors and how to access it, along with formats for investors complaints data to be disclosed monthly by IAs and RAs on their website and mobile applications and trend of annual disposal of complaints.

The markets regulator has investment advisers and research analysts to bring the investor charter to the notice of their clients (existing as well as new clients) by disclosing the charter on their respective websites and mobile applications.

Also, they have been asked to make the charter available at prominent places in the office and provide a copy of the charter as a part of the client onboarding process, through e-mails or letters etc.

To ensure transparency in the Investor Grievance Redressal Mechanism, all IAs and RAs will continue to disclose on their respective websites and mobile applications the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of the succeeding month in a prescribed format, Sebi said.

Sebi, in December 2021, issued an investor charter for IAs and RAs detailing the services provided to investors and, the rights of investors, among others.

This was aimed at facilitating investor awareness about various activities which an investor deals with, such as the opening of an account, KYC and in-person verification, complaint resolution, issuance of contract notes and various statements.

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