Investor Charter

Why in news?

• Markets regulator SEBI on 17^th November 2021 came out with an investor charter aimed at protecting the interest of investors in the securities market. It was first proposed in Union Budget 2021-2022.

About Investor Charter:

• It comprises of rights and responsibilities of investors as well as dos & don’ts of investing in securities market.
• The vision of the investor charter is “to protect the interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner.”
• The charter will ensure that SEBI-registered intermediaries or regulated entities stick to their investor charters including grievance redressal mechanism.

Rights of Investors

• According to Investor Charter, investors will get the right to:
  • Get fair equitable treatment
  • Expect redressal of investor grievances filed in ‘SEBI Complaints Redress System (SCORES)’ in timely manner.
  • Get quality services from market infrastructure institutions, recognised by SEBI.

Responsibilities of Investors

• Investors will have the responsibilities to:
  • Deal with SEBI-recognised market infrastructure institutions as well as SEBI-registered regulated entities or intermediaries.
  • Update their contact details like address, email id, mobile number, nomination and other KYC details.
  • Ensure grievances are taken up by concerned entities in timebound manner.
  • Ensure that their accounts are operated for their own benefits only

PRACTICE QUESTION:

Investor Charter, which aimed at protecting the interest of investors in the securities market, is launched by:

(a) Reserve Bank of India

(b) NITI Aayog

(c) Securities and Exchange Board of India

(d) State Bank of India

Answer