Investor Charter Stock Broker

Investor Charter Stock Broker

Annexure - A - 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.
ii) To establish and maintain a relationship of trust and ethics with the investors.
iii) To observe highest standard of compliances and transparency.
iv) To always keep ‘protection of investors’ interest’ as goal while providing service.
v) 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 include

I. Execution of trades on behalf of investors.
II. Issuance of Contract Notes.
III. Issuance of intimations regarding margin due payments.
IV. Facilitate execution of early pay-in obligation instructions.
V. Periodic Settlement of client’s funds.
VI. Issuance of retention statement of funds at the time of settlement
VII. Risk management systems to mitigate operational and market risk.
VIII. Facilitate client profile changes in the system as instructed by the client.
IX. Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII)/exchange circulars.
X. Provide a copy of Rights & Obligation documents to the client.
XI. Communicating Most Important Terms and Conditions (MIT C) to the client.
XII. Redressal of Investor’s grievances.

4. Rights of Investors

I. Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information
II. Receive complete information about the risks, obligations, and costs of any investment before investing.
III. Receive a copy of all completed account forms and rights & obligation document.
IV. Receive a copy of ‘Most Important Terms & Conditions’ (MITC).
V. Receive account statements that are accurate and understandable.
VI. Understand the terms and conditions of transactions you undertake.
VII. Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.
VIII. Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.
IX. Discuss your grievances with compliance officer / compliance team / dedicated grievance redressal team of the firm and receive prompt attention to and fair consideration of your concerns.
X. Close your zero balance accounts online with minimal documentation
XI. Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account
XII. Not be discriminated against in terms of services offered to equivalent clients
XIII. Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place
XIV. In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place
XV. Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence.
XVI. Get warnings on the trading systems while placing orders in securities where surveillance measures are in place
XVII. Get access to products and services in a suitable manner even if differently abled
XVIII. Get access to educational materials of the MIIs and brokers
XIX. Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms
XX. Deal with one or more stockbrokers of your choice without any compulsion of minimum business
XXI. Have access to the escalation matrix for communication with the broker
XXII. Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

5. Various activities of Stock Brokers with timelines

S. No.

Activities 

Expected Timelines 

1.

KYC entered into KRA System and CKYCR 

3 working days of account opening 

2.

Client Onboarding 

Immediate, but not later than one week 

3.

Order execution 

Immediate on receipt of order, but not 

later than the same day 

4.

Allocation of Unique Client Code 

Before trading 

5.

Copy of duly completed Client Registration Documents to clients 

7 days from the date of upload of Unique Client Code to the Exchange by the trading member 

6.

Issuance of contract notes 

24 hours of execution of trades 

7.

Collection of upfront margin from client 

Before initiation of trade 

8.

Issuance of intimations regarding other margin due payments 

At the end of the T day 

9.

Settlement of client funds 

First Friday/Saturday of the month/quarter as per Exchange pre-announced schedule

10.

‘Statement of Accounts’ for Funds, Securities and Commodities 

Monthly basis 

11.

Issuance of retention statement of  funds/commodities 

5 days from the date of settlement 

12.

Issuance of Annual Global Statement 

30 days from the end of the financial year 

13.

Investor grievances redressal 

21 calendar days from the receipt of the complaint 

6. DOs and DON’Ts for Investors

DOs 

DON’Ts 

  1. Read all documents and conditions being agreed before signing the account opening form. 
  2. Receive a copy of KYC, copy of account opening documents and Unique Client Code. 
  3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. 
  4. Receive all information about brokerage, fees and other charges levied. 
  5. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. 
  6. If executed, receive a copy of Demat Debit and Pledge Instruction (DDPI). However, DDPI is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting DDPI, carefully examine the scope and implications of powers being granted. 
  7. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT/CTT etc. as applicable, separately, within 24 hours of execution of trades. 
  8. Receive funds and securities / commodities on time, as prescribed by SEBI or exchange from time to time. 
  9. Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges. 
  10. Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (Monthly or Quarterly). 
  11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. 
  12. Retain documents for trading activity as it helps in resolving disputes, if they arise.
  1. Do not deal with unregistered stock broker. 
  2. Do not forget to strike off blanks in your account opening and KYC form. 
  3. Do not submit an incomplete account opening and KYC form. 
  4. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. 
  5. Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker. 
  6. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. 
  7. Do not opt for digital contracts, if not familiar with computers. 
  8. Do not share trading password. 
  9. Do not fall prey to fixed / guaranteed returns schemes. 
  10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits. 
  11. Do not follow herd mentality for investments. Seek expert and professional advice for your investments. 

Additionally, investors may refer to Dos and Don’ts issued by MIIs on their respective websites from time to time.

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

Mode of filing the complaint with stock exchanges

Two level review for complaint/grievance against stock broker: 

  • First review done by Designated body/Exchange 
  • Second review done by SEBI
  • II. Emails to designated email IDs of Exchange

2.

Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration

If the Investor is not satisfied with the resolution provided by the Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through online conciliation or 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: 
    • I. May escalate the complaint on SEBI SCORES portal. 
    • II. 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

Annexure – B- Investor Complaints Data

SN . Received from Carried forward from previous Month Received during the month Total Pending Resolved* Pending at the end of the month** Average Resolution time^ (in days)
Pending for less than 3 months Pending for more than 3 months
1 2 3 4 5 6 7 8
1 Directly from Investors 0 0 0 0 0 0
2 SEBI (SCORES) 0 0 0 0 0 0
3 Stock Exchange 0 0 0 0 0 0
4 Other Sources (if any) 0 0 0 0 0 0
5 Grand Total 0 0 0 0 0 0
SN . Month Carried Forward from previous month Received Resolved* Pending**
1 2 3 4 5 6
1 April-2024 0 0 0 0
2 May-2024 0 0 0 0
3 June-2024 0 0 0 0
4 July-2024 0 0 0 0
5 Aug-2024 0 0 0 0
6 Sep-2024 0 0 0 0
7 Oct-2024 0 0 0 0
8 Nov-2024 0 0 0 0
9 Dec-2024 0 0 0 0
10 Jan-2025 0 0 0 0
11 Feb-2025 0 0 0 0
12 March-2025 0 0 0 0

*Should include complaints of previous months resolved in the current month, if any.
**Should include total complaints pending as on the last day of the month, if any.
^Average resolution time is the sum total of time taken to resolve each complaint in the current month divided by total number of complaints resolved in the current month.

SN . Year Carried forward from previous Received during the year Resolved during the year Pending at the end of year
1 2017-18 0 0 0 0
2 2018-19 0 0 0 0
3 2019-20 0 0 0 0
4 2020-21 0 0 0 0
5 2021-22 0 0 0 0
6 2022-23 0 0 0 0
7 2023-24 0 0 0 0
8 2024-25 0 0 0 0
Grand Total 0 0 0 0

Disclaimer: Investment in securities market are subject to market risks, please read all the related documents carefully before investing

ATTENTION INVESTORS:

Update your Mobile Number and E-mail IDs with your Stock Broker: “Prevent unauthorized transaction in your Trading/Demat account. Update your Mobile Numbers/Email Ids with your Stock Brokers/Depository Participant. Receive information/alerts of your transaction (Trading A/c) directly from Exchange at the end of the day & Demat Transaction for all debit and other important in your demat A/c directly from CDSL on the same day on your Registered mobile/email.

About CAS facility: For the benefit of the investors SEBI directed Depositories to send the Consolidated Account Statement (CAS) for the investment of an investor in Mutual Funds (MF) and Securities held in Demat form with Depositories. In case the client do not desire to receive CAS then they can opt out of the facility by submitting a request letter to the DP duly signed by all the holders stating that they do not wish to receive CAS as per guidelines prescribed by SEBI in communiqué no. 4816 and 4900

KYC is one time exercise: "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.),you need not undergo the same process again when you approach another intermediary."

Old DIS Booklet Phased out: DIS issued prior to 07-Jan- 2014 Phased out w.e.f. 06-Jan-2016 for Demat Transactions, Kindly contact your DP to receive New DIS to further transaction.

ASBA mandatory after January 1, 2016: "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

Pledge/Block Mechanism: Stock Brokers can accept securities as margin from clients only by way of pledge/block mechanism in the depository system w.e.f. September 01, 2020.

OTP directly from Depository: Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

FAQ: Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.

Margin: Pay 20% (or as per exchange) upfront margin of the transaction value to trade in cash market segment.

CAS: Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

ITORS: “The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time. The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.”

Beware of fixed / guaranteed / regular returns / capital protection schemes. Stock Brokers (Brokers/Members) or their authorized persons or any of their associates are not authorized to offer fixed / guaranteed / regular returns / capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities / commodities given to the Broker under any arrangement / agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.

Do not keep funds idle with the Stock Broker. Please note that your Stock Broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities/commodities, without any transaction on the Exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your Stock Broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of Member as defaulter, the claims of clients against such Defaulter Member would be subject to norms for eligibility of claims for compensation from Member funds / IPF to the clients of the Defaulter Member.

These norms are available on Exchange website at following link: https://www.mcxindia.com/Investor- Services/defaulters/sop-process-faqs-for-handling-of-claims-of-investors-of-defaulter-member

Stock Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin / collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the Broker or associate of the Broker or authorized person of the Broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

Always keep your contact details, viz. mobile number / email ID updated with the Broker. Email and mobile number is mandatory and you must provide the same to your Broker for updation in Exchange records. You must immediately take up the matter with Broker / Exchange if you are not receiving the messages from Exchange / Depositories regularly.

Don't ignore any emails / SMSs received from the Exchange for trades done by you. Verify the same with the contract notes / statement of accounts received from your Stock Broker and report discrepancy, if any, to your Broker in writing immediately and if the Broker does not respond, please take this up with the Exchange/Depositories forthwith.

Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the Stock Broker, compare it with the weekly statement of account sent by Stock Broker and immediately raise a concern to the Exchange if you notice any discrepancy.

Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the Stock Broker, other than a SEBI registered Stock Broker.

Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

.......... Issued in the interest of Investors


Investor Grievance:

In case of any grievances please write to: grievances@msbetrade.com (for Trading) dpgrievances@msbetrade.com (For DP)

Information regarding SEBI Complaint Redress System (SCORES)
Filing of complaints on SCORES – Easy & Quick

  • Register on SCORES portal
  • Mandatory details for filing complaints on SCORES:
  • Name, PAN, Address, Mobile Number, Email ID
  • Benefits
    1. Effective communication
    2. Speedy redressed of the grievances