SEBI Revises Investor Charter for Advisers and Analysts to Boost Financial Literacy

In a move aimed at bolstering investor awareness and transparency in the financial markets, the Securities and Exchange Board of India (SEBI) has revised its investor charter for investment advisers (IAs) and research analysts (RAs). This update is driven by the latest advancements in the securities market infrastructure, including the launch of the Online Dispute Resolution (ODR) platform and the upgraded grievance redressal system, SCORES 2.0.

Charter Now Includes Vision, Services, and Investor Rights

According to SEBI’s latest circulars, the modified investor charter features the vision and mission of investment advisers and research analysts, details of the services they provide, and the business they transact with investors. It also outlines the rights and responsibilities of investors, as well as comprehensive details on how to access the available redressal mechanisms.

Moreover, the charter introduces standardised formats for monthly disclosure of investor complaint data. These are to be published on the respective websites and mobile apps of IAs and RAs. It will also include a yearly trend analysis of complaint disposals.

Mandatory Disclosure and Accessibility of the Charter

SEBI has instructed all investment advisers and research analysts to proactively bring the updated investor charter to the attention of their clients, both new and existing. This must be done through publication on websites and mobile applications, display at prominent office locations, and by providing copies via email or letters during the client onboarding process.

“To ensure transparency in the Investor Grievance Redressal Mechanism, all IAs and RAs will continue to disclose on their respective websites and mobile applications the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of the succeeding month in a prescribed format,” SEBI stated.

The investor charter first came into effect in December 2021, detailing services offered and the rights of investors, including aspects such as account opening, KYC, in-person verification, complaint resolution, and documentation like contract notes.

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Conclusion

SEBI’s revised investor charter reflects its continued efforts to enhance transparency, financial literacy, and investor protection in India’s capital markets. By aligning the charter with evolving technologies and regulatory platforms, the market watchdog reaffirms its commitment to empowering investors through clearer information and more efficient grievance redressal.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.