SEBI Considers Revising Investor Charter for Better Consumer Protection

resr 5paisa Research Team

Last Updated: 30th January 2025 - 12:45 pm

Listen icon

The Securities and Exchange Board of India (SEBI) has proposed a revision of the investor charter for stock brokers to strengthen financial consumer protection, promote financial inclusion, and enhance financial literacy.

This proposal takes into account recent advancements in the securities market, such as the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0, a web-based centralized grievance redressal system by SEBI.

As outlined in its consultation paper, SEBI has suggested modifications to the investor charter for stock brokers and has invited public comments on the proposal until February 17.

The revised charter would cover aspects such as vision, mission, services offered by brokers to investors, broker activities with associated timelines, investor guidelines (DOs and DON'Ts), grievance redressal mechanisms, and procedures for handling investor claims in cases of trading member defaults. It would also mandate brokers to display investor complaints data and trends in annual complaint resolution on their websites.

Furthermore, SEBI has recommended that brokers make the charter accessible to clients by publishing it on their websites, displaying it prominently in their offices, and including it in the account opening kit, either in physical or digital form (emails/letters).

Additionally, all brokers must continue to update their websites with details of complaints received and their resolution status by the 7th of each month.

The investor charter for brokers was initially introduced by SEBI in December 2021, covering investor rights, broker services, key activities with timelines, investor guidelines, and grievance redressal processes. The objective was to enhance investor awareness regarding critical aspects such as account opening, KYC procedures, in-person verification, complaint resolution, issuance of contract notes, and financial statements.

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form