Sebi renews investor charter to increase transparency, grievance redressal
Capital markets regulator Sebi on Friday unveiled a revised investor charter aimed at improving investor protection, market transparency, and trust and confidence among investors. The revised charter emphasized on ensuring the confidentiality of investors’ information and providing the right to opt out on fair and reasonable terms from securities-related products or services.
“Furthermore, Sebi has strengthened its grievance redressal and alternative dispute resolution mechanism by introducing SCORES 2.0 and SMART Online Dispute Resolution,” the regulator said in a statement.
In SCORES 2.0, investor complaints are taken directly to registered intermediaries/Sebi regulated entities and designated bodies for review at the first level, with market watchdogs taking all complaints at the Second Level Review stage.
The SMART ODR portal facilitates online conciliation and online arbitration to resolve disputes arising in the Indian securities market.
The improved charter aims to make investors better understand the risks associated with investing in the markets while ensuring their timely and efficient management.
The regulator urged investors to be diligent in dealing only with institutions and market infrastructure intermediaries recognized by Sebi.
Investors are also encouraged to keep their Know Your Customer (KYC) contact details up-to-date and address complaints within the stipulated time frames.
In line with its mission, market watchers are committed to simplifying procedures to facilitate investment while adopting new and digital solutions to improve the securities market.
The revised charter also outlines best practices for investors, such as keeping transaction records, knowing the risks and costs associated with investing, and practicing grievance redressal procedures.
In addition, the regulator advises against practices such as making cash payments that exceed set limits or sharing sensitive account information.
