Sebi revamps investor charter to boost transparency, grievance redressal

The updated charter has emphasised on ensuring confidentiality of investor information and providing the right to exit at fair and reasonable terms from securities market related products or services

Capital markets regulator Sebi on Friday unveiled an updated investor charter aimed to enhance investor protection, market transparency, and trust and confidence among investors.

The updated charter has emphasised on ensuring confidentiality of investor information and providing the right to exit at fair and reasonable terms from the securities market related products or services.

"Further, Sebi has strengthened the grievance redressal mechanism and alternative dispute resolution mechanism with the launch of SCORES 2.0 and SMART Online Dispute Resolution," the regulator said in a statement.

In SCORES 2.0, investor complaints are taken up directly with Sebi registered intermediaries/regulated entities and the designated bodies for first level review, with the markets watchdog taking up all complaints at the stage of Second Level Review.

SMART ODR portal facilitates online conciliation and online arbitration for resolution of disputes arising in the Indian securities market.

The revamped charter aims to enable investors to better understand the risks associated with market investments while ensuring their fair treatment in a timely and efficient manner.

The regulator has urged investors to exercise diligence by engaging only with Sebi-recognised market infrastructure institutions and intermediaries.

Investors are also encouraged to keep their contact and Know Your Customer (KYC) details up to date and address grievances within prescribed timelines.

In line with its mission, the markets watchdog has committed to streamline procedures to facilitate ease of investment while adopting innovative and digital solutions to modernise the securities market.

The updated charter also details best practices for investors, such as maintaining transaction records, knowing the risks and fees associated with investments, and familiarizing themselves with the grievance redressal mechanisms.

Further, the regulator advised against practices like making cash payments beyond prescribed limits or sharing sensitive account details.