Investor Charter – Stock Brokers

Annexure-A

Investor Charter – Stock Brokers

1. 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.

2. MISSION

i)To provide high quality and dependable service through innovation, capacity enhancement and use of technology.

ii)To establish and maintain a relationship of trust and ethics with the investors.

iii)To observe highest standard of compliances and transparency.

iv)To always keep ‘protection of investors’ interest’ as goal while providing service.

v)To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

3. 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.

•Periodic Settlement of client’s funds.

•Issuance of retention statement of funds at the time of settlement.

•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. relevant Market Infrastructure Institutions (MII) circulars.

•Provide a copy of Rights & Obligations document to the client.

•Communicating Most Important terms and Conditions (MITC) to the client.

•Redressal of Investor’s grievances.

4. Rights of Investors

•Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information).

•Receive complete information about the risks, obligations, and costs of any investment before investing.

•Receive a copy of all completed account forms and rights & obligation document.

•Receive a copy of ‘Most Important Terms & Conditions’ (MITC).

•Receive account statements that are accurate and understandable.

•Understand the terms and conditions of transactions you undertake.

•Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.

•Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.

•Discuss Discuss your grievances with compliance officer / compliance team / dedicated grievance redressal team of the firm and receive prompt attention to and fair consideration of your concerns.

•Close your zero balance accounts online with minimal documentation.

•Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account.

•Not be discriminated against in terms of services offered to equivalent clients.

•Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place.

•In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place.

•Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence.

•Get warnings on the trading systems while placing orders in securities where surveillance measures are in place.

•Get access to products and services in a suitable manner even if differently abled.

•Get access to educational materials of the MIIs and brokers.

•Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms.

•Deal with one or more stockbrokers of your choice without any compulsion of minimum business.

•Have access to the escalation matrix for communication with the broker.

•Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

Additionally, Investors may refer to Dos and Don’ts issued by MIIs on their respective websites from time to time.

8. 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 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.

•Standard Operating Procedure (SOP) for handling of Claims of Investors in the Cases of Default by Brokers.

•Claim processing policy against Defaulter/Expelled members.

•List of Defaulter/Expelled members and public notice issued.