Investor Charter – Stock Brokers

1. VISION

To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.

2. MISSION

  • To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
  • To establish and maintain a relationship of trust and ethics with the investors.
  • To observe highest standard of compliances and transparency.
  • To always keep ‘protection of investors’ interest’ as goal while providing service.
  • To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

3. Services provided to Investors by stockbrokers include

  • Execution of trades on behalf of investors.
  • Issuance of Contract Notes.
  • Issuance of intimations regarding margin due payments.
  • Facilitate execution of early pay-in obligation instructions.
  • Periodic Settlement of client’s funds.
  • Issuance of retention statement of funds at the time of settlement.
  • Risk management systems to mitigate operational and market risk.
  • Facilitate client profile changes in the system as instructed by the client.
  • Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars.
  • Provide a copy of Rights & Obligations document to the client.
  • Communicating Most Important terms and Conditions (MITC) to the client.
  • Redressal of Investor’s grievances.

5. Various activities of Stock Brokers with timelines

S.No.ActivitiesExpected Timelines
1.KYC entered into KRA System and CKYCR3 working days of account opening
2.Client OnboardingImmediate, but not later than one week
3.Order executionImmediate on receipt of order, but not later than the same day
4.Allocation of Unique Client CodeBefore trading
5.Copy of duly completed Client Registration Documents to clients7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6.Issuance of contract notes24 hours of execution of trades
7.Collection of upfront margin from clientBefore initiation of trade
8.Issuance of intimations regarding other margin due paymentsAt the end of the T day
9.Settlement of client fundsFirst Friday/Saturday of the month / quarter as per Exchange pre-announced schedule
10.‘Statement of Accounts’ for Funds, Securities and CommoditiesMonthly basis
11.Issuance of retention statement of funds/commodities5 days from the date of settlement
12.Issuance of Annual Global Statement30 days from the end of the financial year
13.Investor grievances redressal21 calendar days from the receipt of the complaint

7. Grievance Redressal Mechanism

The process of investor grievance redressal is as follows:

1.Investor complaint/Grievances

Investor can lodge complaint/grievance against stock broker in the following ways:

Mode of filing the complaint with stock broker

Investor can approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 21 days of the receipt of the grievance

Investor Grievance Email ID: helpdesk@9star.in

Mode of filing the complaint with stock exchanges

  1. SCORES 2.0 (a web based centralized grievance redressal system of SEBI)

    (https://scores.sebi.gov.in)

    Two level review for complaint/grievance against stock broker:

    • First review done by Designated body/Exchange
    • Second review done by SEBI
  2. Emails to designated email IDs of Exchange
2.Online Dispute Resolution (ODR) platform for online Conciliation and Arbitrationby the Market Participants, then the has the option to file the complaint/ arbitration.
3.Steps to be followed in ODR for Review, Conciliation and Arbitration
  1. Investor to approach Market Participant for redressal of complaint
  2. If investor is not satisfied with response of Market Participant, he/she has either of the following 2 options:
    1. May escalate the complaint on SEBI SCORES portal.
    2. May also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.
  3. Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavor to resolve the matter between the Market Participant and investor within 21 days.
  4. If the matter could not be amicably resolved, then the matter shall be referred for conciliation.
  5. During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator with consent of the parties to dispute.
  6. If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.
  7. The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days with consent of the parties to dispute.

8. Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)

Default of TM/CM

Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:

  • Circular is issued to inform about declaration of Stock Broker as Defaulter.
  • Information of defaulter stock broker is disseminated on Stock Exchange website.
  • Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period.
  • Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.

Following information is available on Stock Exchange website for information of investors:

  • Norms for eligibility of claims for compensation from IPF.
  • Claim form for lodging claim against defaulter stock broker.
  • FAQ on processing of investors’ claims against Defaulter stock broker.
  • Provision to check online status of client’s claim.
  • Standard Operating Procedure (SOP) for handling of Claims of Investors in the Cases of Default by Brokers
  • Claim processing policy against Defaulter/Expelled members
  • List of Defaulter/Expelled members and public notice issued