Investor Charter
2021 NOV 18
Preliminary >
Economic Development > Indian Economy and Issues > Financial market
Why in news?
- Markets regulator SEBI on 17th November 2021 came out with an investor charter aimed at protecting the interest of investors in the securities market. It was first proposed in Union Budget 2021-2022.
About Investor Charter:
- It comprises of rights and responsibilities of investors as well as dos & don’ts of investing in securities market.
- The vision of the investor charter is “to protect the interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner.”
- The charter will ensure that SEBI-registered intermediaries or regulated entities stick to their investor charters including grievance redressal mechanism.
Rights of Investors
- According to Investor Charter, investors will get the right to:
- Get fair equitable treatment
- Expect redressal of investor grievances filed in ‘SEBI Complaints Redress System (SCORES)’ in timely manner.
- Get quality services from market infrastructure institutions, recognised by SEBI.
Responsibilities of Investors
- Investors will have the responsibilities to:
- Deal with SEBI-recognised market infrastructure institutions as well as SEBI-registered regulated entities or intermediaries.
- Update their contact details like address, email id, mobile number, nomination and other KYC details.
- Ensure grievances are taken up by concerned entities in timebound manner.
- Ensure that their accounts are operated for their own benefits only
PRACTICE QUESTION:
Investor Charter, which aimed at protecting the interest of investors in the securities market, is launched by:
(a) Reserve Bank of India
(b) NITI Aayog
(c) Securities and Exchange Board of India
(d) State Bank of India
Answer