Investors Charter
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 dematerialised 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 on the link https://www.cdslindia.com/DP/dplist.aspx
4. Description of services provided by the Depository
through Depository Participants (DP) to investors
1) Basic Services
| Sr.No. | Brief about the Activity/ Services | Expected Timelines for processing by the DP after receipt of proper documents |
|---|---|---|
| 1 | Dematerialization of securities | 7 Days |
| 2 | Rematerialization of securities | 7 Days |
| 3 | Mutual Fund Conversion / Destatementization | 5 Days |
| 4 | Re-conversion / Restatementisation of Mutual fund units | 7 Days |
| 5 | Transmission of securities | 7 Days |
| 6 | Registering pledge request | 15 Days |
| 7 | Closure of demat account | 30 Days |
| 8 | 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/ Services |
|---|---|---|
| 1 | Value Added Service | Depositories also provide value added services such as:
|
| 2 | 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). |
| 3 | Digitalization of services provided by the depositories | Depositories offer below 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. | ||
|---|---|---|
| 1 | Investor Complaint/ Grievances | Investor can lodge complaint/ grievance against the Depository/DP in the following ways:
The complaints/ grievances lodged directly with the Depository shall be resolved |
| 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. |
| 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). |
For the Multi-level complaint resolution mechanism available at the Depositories
6. Guidance pertaining to special circumstances related to market
activities: Termination of the Depository Participant
Type of special circumstances –
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.
Timelines for the Activity/ Services –
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.
Investor charter stock broker
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
- 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 ‘protection of investors’ interest’ as goal while providing service.
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.
- 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.
4. 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.
Complaints Resolution Process at Stock Exchange explained graphically:
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.
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.gov.in/scores/Welcome.html.
