Investor Charters
Trustworthy & fastest growing stock broking company
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 'protect 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 about the firm itself, as well as the work history and background of the representative handling your account.
- Receive complete information about risks, obligations, and costs before investing.
- Receive recommendations consistent with your financial needs and investment objectives.
- Receive all completed account forms and agreements.
- Receive accurate and understandable account statements.
- Understand transaction terms and conditions.
- Access your funds promptly with clarity on any restrictions.
- Know maintenance/service charges, transaction or redemption fees, and penalties up front.
- Discuss concerns with the compliance officer and expect fair resolution.
Various activities of Stock Brokers with timelines
| Sr.no | Activities | Expected Timelines |
|---|---|---|
| 01 | KYC entered into KRA System and CKYCR | 10 days of account opening |
| 02 | Client Onboarding | Immediate, but not later than one week |
| 03 | Order execution | Immediate on receipt of order, but not later than the same day |
| 04 | Allocation of Unique Client Code | Before trading |
| 05 | 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 |
| 06 | Issuance of contract notes | 24 hours of execution of trades |
| 07 | Collection of upfront margin from client | Before initiation of trade |
| 08 | Issuance of intimations regarding other margin due payments | At the end of the T day |
| 09 | Settlement of client funds | 30 days / 90 days for running account settlement (RAS) as per the preference of client.If consent not given for RAS within 24 hours of pay-out |
| 10 | Statements 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 settlement |
| 12 | Issuance of Annual Global Statement | 30 days from the end of the financial year |
| 13 | Investor grievances redressal | 30 days from complaint receipt |
DOs and Don'ts for Investors
| Sr.no | Do's | Don'ts |
|---|---|---|
| 01 | Read all documents and conditions being agreed before signing the account opening form. | Do not deal with unregistered stock broker. |
| 02 | Receive a copy of KYC, copy of account opening documents and Unique Client Code. | Do not forget to strike off blanks in your account opening and KYC. |
| 03 | Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. | Do not submit an incomplete account opening and KYC form. |
| 04 | Receive all information about brokerage, fees and other charges levied. | Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. |
| 05 | Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. | 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 stock broker. |
| 06 | 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. | Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. |
| 07 | Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades. | Do not opt for digital contracts, if not familiar with computers. |
| 08 | Receive funds and securities / commodities on time within 24 hours from pay-out. | Do not share trading password. |
| 09 | 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. | Do not fall prey to fixed / guaranteed returns schemes. |
| 10 | Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days). | Do not fall prey to fraudsters sending emails and SMS luring to trade in stocks / securities promising huge profits. |
| 11 | In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. | 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.
- 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.sebi.gov.in/
Handling of Investor's claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)
| Sr.no | Type of Activity | Timelines for activity |
|---|---|---|
| 01 | Receipt of Complaint | Day of complaint (C Day). |
| 02 | Additional information sought from the investor, if any, and provisionally forwarded to stock broker. | C + 7 Working days. |
| 03 | Registration of the complaint and forwarding to the stock broker. | C+8 Working Days i.e. T day. |
| 04 | Amicable Resolution. | T+15 Working Days. |
| 05 | Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution. | T+16 Working Days. |
| 06 | Complete resolution process post GRC. | T + 30 Working Days. |
| 07 | In case where the GRC Member requires additional information, GRC order shall be completed within. | T + 45 Working Days. |
| 08 | Implementation of GRC Order. | On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order |
| 09 | 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. |
Default of TM/CM
Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:
- 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 inviting claims within specified period.
- Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging 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.
Investor Charter for depositories and Depository Participants Annexure-A
1. Vision
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.
2. Mission
- To hold securities of investors in dematerialized form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
- To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
- To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.
3. Details of business transacted by the Depository and Depository Participant (DP)
A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available in the link https://nsdl.co.in/dpsch.php
4. Description of services provided by the Depository through Depository Participants (DP) to investors
(1) Basic Services
| Sr.no | Brief about the Activity / Service | Expected Timelines for processing by the DP after receipt of proper documents |
|---|---|---|
| 01 | Dematerialization of securities | 7 days |
| 02 | Rematerialization of securities | 7 days |
| 03 | Mutual Fund Conversion / Destatementization | 5 days |
| 04 | Re-conversion / Restatementisation of Mutual fund units | 7 days |
| 05 | Transmission of securities | 7 days |
| 06 | Registering pledge request | 15 days |
| 07 | Closure of demat account | 30 days |
| 08 | Settlement Instruction | Depositories to accept physical DIS for pay-in of securities upto 4 p.m. and DIS in electronic form upto 6 p.m. on T+1 day |
(2) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include
| Sr.no | Type of Activity / Service | Brief about the Activity / Service |
|---|---|---|
| 01 | Value Added Services | Depositories also provide value added services such as:
|
| 02 | Consolidated Account Statement (CAS) | CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions). |
| 03 | Digitalization of services provided by the depositories | Depositories offer the following technology solutions and e-facilities to their demat account holders through DPs: |
5. Details of Grievance Redressal Mechanism
(1) The Process of investor grievance redressal
| Sr.no | Type of Activity | Details |
|---|---|---|
| 01 | Investor Complaint/ Grievance | Investor can lodge complaint/ grievance against the Depository/DP in the following ways: a. Electronic mode - i. SCORES (a web based centralized grievance redressal system of SEBI) https://scores.sebi.gov.in/ ii. Respective Depository’s web portal dedicated for the filing of complaint https://www.cdslindia.com/Footer/grievances.aspx iii. Emails to designated email IDs of Depository [email protected] The complaints/ grievances lodged directly with the Depository shall be resolved within 30 days. |
| 02 | Investor Grievance Redressal Committee of Depository | If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties, and examining the necessary information and documents. |
| 03 | Arbitration proceedings | The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s). |
6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant
| Sr.no | Type of Special Circumstances | Timelines for the Activity / Service |
|---|---|---|
| 01 | Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. Participant surrenders the participation by its own wish. | Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email. |
Annexure B - Information Contained in links to the Investor Charter for Depositories and DPs
This document contains the contents pertaining to the qualifier https://www.cdslindia.com/Investors/InvestorCharter.html document. The same is to be made available by the Depositories on their websites and web-links to the same is to be provided for incorporation in the Investor Charter.
For reasons of convenience, the contents in main Charter and this document have been mapped with the same superscript.
Para 4 (2) of Investor Charter
Point 1: Value Added Services
- Basic Services Demat Account (BSDA): The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000.
- Transposition cum dematerialization: In case of transposition-cum-dematerialisation, client can get securities dematerialized in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.
- Linkages with Clearing System for actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.
Point 2: Digitization of services provided by the depositories
- E-account opening: Account opening through digital mode, popularly known as "On-line Account opening", wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.
- Online instructions for execution: internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities 'anytime-anywhere' in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.
- e-DIS / Demat Gateway: Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.
- e-CAS facility: Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.
- Miscellaneous services: Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed.
Para 5(1) of Investor Charter
Point 2 (Investor Grievance Redressal Committee of Depository): If no amicable resolution is arrived, then the Investor has the option to refer the complaint / grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint / grievance by hearing the parties and examining the necessary information and documents.
Point 3 (Arbitration proceedings): The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).
Para 5(2) of Investor Charter
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