Sebi Investment Advisor Regulations: The capital market regulator, the Securities Exchange Board of India (Sebi), has released a new investor charter for investment advisors via a circular on June 2. The market regulator said that the new charter has been released to enhance consumer protection and financial inclusion amid the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0.
Sebi also stated in the circular that the mission of the charter is to enable investors to invest in the right investment products based on their needs, manage, and monitor them to meet their goals, access reports, and enjoy financial wellness.
The regulator directed all investment advisers to disclose the data on the complaints received against them on their respective websites and mobile applications (if any) by the seventh of the succeeding month. Notably, the complaints have to mandatorily be displayed in the format prescribed by the Sebi mentioned in the circular. Sebi also detailed the various rights investors have and a list of do’s and don’ts that investors should follow.
The market regulator detailed the various ways in which investors can seek redressal for any issues they may face when dealing with investment advisors (IAs). Sebi said that investors can file complaints with investment advisors by directly approaching the concerned investment adviser. The regulator added that the IA should strive to redress the grievance immediately, but not later than 21 days of the receipt of the grievance.
On the other hand, if an investor wishes to take up their complaint on SCORES or with the Investment Adviser Administration and Supervisory Body (IAASB), they can do so by going to the SCORES website. SCORES 2.0 is a web-based centralised grievance redressal system of Sebi for facilitating effective grievance redressal in a time-bound manner.
Following the receipt of the complaint, a two-level review of the complaint will be conducted. The first level review will be done by the designated body (IAASB), and the second level review will be conducted by the Sebi. Apart from filing a complaint on SCORES, investors can also send an email to the designated email ID of IAASB.
If an investor is not satisfied with the resolution provided by the market participants, then he or she can also file a complaint or grievance on the Securities Market Approach for Resolution Through Online Dispute Resolution (SMARTODR) platform for seeking resolution through online conciliation or arbitration.
The Sebi said that investors can also file grievances offline by sending complaints to the below-mentioned address:
Office of Investor Assistance and Education,
Securities and Exchange Board of India,
SEBI Bhavan, Plot No.C4-A, ‘
G’Block,Bandra-Kurla Complex, Bandra (E),
Mumbai -400 051
