SEBI has issued Investor Charter for Registrars to an Issue and Share Transfer Agents. As per the charter investors shall have the following rights: the right to receive all the benefits and material information declared by the Company; the right to fair and equitable treatment; and the right to actively participate in the Annual General Meeting (AGM), Extraordinary General Meeting (EGM), and e-voting events in order to be part of the decision-making process for the Company’s business resolutions. They also have the right to approach the Registrar and Transfer Agent (RTA), Depository, Company, Stock Exchange, or SEBI for resolution of grievances within prescribed timelines.
Additionally, investors have the right to ask for and receive information regarding all statutory and regulatory disclosures, and the right to sell or transfer securities with minimal documentation. They are entitled to access services in a suitable manner, even if differently abled, and to receive educational materials from RTAs. Investors also have the right to customised services as per their requirements at a fair price, as well as the right to access the escalation matrix for communication with the RTA. Finally, investors have the right not to be bound by any clause prescribed by the Issuer Company or RTA that contravenes regulatory provisions.
Further, SEBI has issued investor charter for investment advisors. The charter provides following Rights of Investors:
- Right to Privacy and Confidentiality
- Right to Transparent Practices
- Right to fair and Equitable Treatment
- Right to Adequate Information
- Right to Initial and Continuing Disclosure
- Right to receive information about all the statutory and regulatory disclosures
- Right to Fair & True Advertisement
- Right to Awareness about Service Parameters and Turnaround Times
- Right to be informed of the timelines for each service
- Right to be Heard and Satisfactory Grievance Redressal
- Right to have timely redressal
- Right to Suitability of the Financial Products
- Right to Exit from Financial product or service
- Right to receive clear guidance and caution notice when dealing in Complex and High-Risk Financial Products and Services
- Additional Rights to vulnerable consumers
- Right to get access to services in a suitable manner even if differently abled
- Right to provide feedback on the financial products and services used
- Right against coercive, unfair, and one-sided clauses in financial agreements
- Right to enforceability and holding the Investment Adviser responsible for monitoring, enforcing investor rights
SEBI has also issued Investor Charter for Research Analysts. As per the charter investors should have following rights:
- Right to Privacy and Confidentiality.
- Right to Transparent Practices.
- Right to fair and Equitable Treatment.
- Right to Adequate Information.
- Right to Initial and Continuing Disclosure – Right to receive information about all the statutory and regulatory disclosures.
- Right to Fair & True Advertisement.
- Right to Awareness about Service Parameters and Turnaround Times.
- Right to be informed of the timelines for each service.
- Right to be Heard and Satisfactory Grievance Redressal.
- Right to have timely redressal.
- Right to Exit from Financial product or service.
- Right to receive clear guidance and caution notice when dealing in Complex and High-Risk Financial Products and Services.
