Sebi Issues Investor Charter For KRAs, Outlines Rights And Grievance Redressal Systems

The Securities and Exchange Board of India (Sebi) has released an investor charter for KYC (Know Your Customer) Registration Agencies (KRAs). This document outlines investor rights, grievance redressal mechanisms, roles and responsibilities of KRAs, the services provided by KRAs, and a list of things investors should and should not do.

The regulator has mandated all KRAs to ensure that both existing and new investors are made aware of the Investor Charter. KRAs must do so by publishing the charter on their websites or sharing it with investors through email. The regulator also asked KRAs to display the charter clearly at prominent places in all their office branches. 

Investor Charter – What Investors Need To Know

Services Provided By KRAs To Investors:

Sebi has outlined various services provided by KRAs to investors to make the KYC process smooth, secure, and transparent.

KRAs handle the registration and updating of an investor’s KYC details. This is done through intermediaries like brokers, mutual funds, and others registered with Sebi. KRAs also ensure that the investor’s identity is properly verified and validated during this process.

Investors can easily track the status of their KYC registration or any updates through online platforms provided by the KRAs or intermediaries. This helps them stay informed about where their KYC stands.

KRAs also allow investors to update their KYC details through any SEBI-registered intermediary. Once an update is made, KRAs quickly share the new information with all linked intermediaries, making the investor’s experience seamless across platforms.

To keep investors informed, KRAs send alerts via SMS, email, or post when there is any activity related to their KYC, such as registration, modification, or data download.

Rights Investors Have:

Sebi has also outlined several rights investors have when it comes to their KYC data.

1. Among the major rights, investors have is that they are guaranteed that their KYC information will remain private and only accessible to authorised Registered Intermediaries

2. Investors also have the right to check and make sure their KYC details are accurate and up-to-date. If anything needs to be updated or corrected, they can do so whenever necessary

3. If investors face any issue with the KYC process, they have access to prompt grievance redressal mechanisms

4. If investors need help with any part of the KYC process, they can avail guidance from KRAs

5. Investors also have access to KRAs’ privacy policies and terms about how their information is used

6. Investors also have the right to view their KYC status online and make updates through any Sebi-registered intermediary

7. In case an investor closes their account with a particular intermediary, they can request to have their KYC record removed from that intermediary’s system.

DOs and DON’Ts For Investors

DOs:

1. Investors should always make sure to provide accurate and complete documents when registering or updating their KYC details.

2. Investors should notify their Sebi-registered intermediary if there are any changes in their KYC information, such as their address or contact details.

3. If an investor receives an alert from KRAs about a KYC registration, modification, or record download that they did not request, they should immediately contact the KRA through the designated email.

4. Investors should familiarise themselves with the Investor Grievance Redressal Mechanism. If they face any issues, they should ensure that their complaints are addressed within the prescribed time limit.

DON’Ts:

1. According to the Investor Charter, investors should not deal with any unauthorised person for service requests such as updation of KYC details.

2. Investors should never share sensitive information like OTPs, signatures, or KYC documents with unknown persons.

How to File Complaints and Resolve Issues

If an investor wants to lodge a complaint, they should first contact the KRA directly. Each KRA has a helpline and a dedicated email address for registering complaints. Investors can send their complaints by email or in writing, and KRAs are expected to resolve the issue within 21 days, after verifying the details.

If the grievance is not resolved or the investor is not happy with the response, they can file a complaint with Sebi using the online SCORES platform. SCORES is Sebi’s centralised online grievance redressal system.

If the complaint still remains unresolved after using SCORES, the investor can then take the issue to Sebi’s SMART ODR (Online Dispute Resolution) portal for further resolution.