The Securities and Exchange Board of India (SEBI) on February 21, 2025, issued a circular regarding the Investor Charter for Stock Brokers. The SEBI, vide Circular no. SEBI/HO/MIRSD/DOP/P/CIR/2021/676 dated December 02, 2021, and Clause 75 of Master Circular for Stock Brokers dated August 09, 2024, inter alia, issued Investor charter for stock brokers.
The decision to modify the investor charter for stock brokers is aimed at improving financial consumer protection, enhancing financial inclusion, and promoting financial literacy. This update comes in response to recent developments in the securities market, including the introduction of an Online Dispute Resolution (ODR) platform and the upgraded SCORES 2.0. The modified charter is designed to provide clearer guidelines and protections for investors, ensuring a more transparent and efficient experience when dealing with stock brokers. The changes aim to further safeguard investors' interests, making dispute resolution easier and fostering a more inclusive and informed financial ecosystem.
In view of the above and based on consultation with Brokers’ Industry Standards Forum (ISF), updated investor charter for stock brokers is placed at Annexure A.
Stock Exchanges have directed Stock Brokers to ensure that the modified Investor Charter is made easily accessible to both existing and new clients. Brokers are required to:
• Display the Investor Charter on their websites.
• Ensure it is prominently available at their office locations.
• Include a copy of the Investor Charter in the account opening kit provided to clients.
• Share the Investor Charter through emails or letters.
This initiative aims to enhance transparency and ensure clients are well-informed about their rights and protections.
Additionally, in order to ensure transparency in the Investor Grievance Redressal Mechanism, all the Stock Brokers shall continue to disclose on their respective websites, the data on complaints received against them or against issues dealt by them and redressal thereof, latest by 7th of succeeding month, as per the format enclosed at Annexure ‘B’ to this circular.
The provisions of this circular shall come into force with immediate effect.
[Circular No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/22]
