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Investors have played a very important role in providing a stable and transparent financial ecosystem. The Securities and Exchange Board of India, SEBI, has brought out an updated version of the Investor Charter to further enhance investor protection, build confidence in the market, and continue to develop grievance redressal mechanisms. This voluminous manual focuses on the critical roles and responsibilities of investors so that a secure and efficient securities market is maintained.
Investor Rights: Empowerment in the Market
The following are the various rights included by SEBI in its Investor Charter to empower the investors so that they confidently participate in the securities market:
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Fair Treatment: Investor gets fair treatment from Market intermediaries and infrastructural institutions.
Grievance Redressal: Each complaint here in this SCORES facility of SEBI would receive instant redressal. SCORES 2.0 provides for first-level review at the hands of a market intermediary under the aegis of SEBI, before escalation.
Confidentiality: The data of investors would be kept confidential unless permitted by law or with express consent.
Exit Options: Investors can withdraw from securities-related products or services on fair and reasonable terms. It adds the SMART Online Dispute Resolution Portal, making online conciliation and arbitration procedures smoother.
Investor Duties: The Key to Healthy Market
Whereas investor's rights are granted, investor obligations also play a pivotal role in a healthy market. Here is what SEBI expects from investors:
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Deal with SEBI Registered Entities: Always deal with SEBI-recognised entities only to ensure genuineness.
KYC Details: Maintain correct contact and nomination details for smooth operation.
Grievance Lodging: Lodge grievances in time to ensure speedy redressal.
Operate Accounts Responsibly: Ensure accounts are used only for personal benefit and not misused for unauthorised activities.
Best Practices for Investors
To reap maximum benefits with minimum risks, investors must read all investment documents correctly before committing funds, know the risks, fees, and charges involved in the transaction, monitor account statements regularly, report discrepancies on time, maintain records of transactions and refrain from making cash payments beyond the allowed limit.
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Pitfalls to Be Avoided Commonly
As an investor, one must not allow anyone else to know the password and login details or any other information related to his account. The amount paid in cash should not exceed the limit where he or she comes under compliance. SCORES 2.0 and SMART ODR Portal of SEBI have been designed to speedily resolve disputes and grievances. Through these systems, efficient redressal of concerns of investors is achieved with markets functioning in a transparent and accessible manner.
