Publishing of Investor Charter and disclosure of Investor Complaints by Investment Advisers

Securities and Exchange Board of India

Circular

SEBI/HO/IMD/IMD-II CIS/P/CIR/2021/0686

December 13, 2021

To,
All Investment Advisers

Dear Sir/Madam,

Subject: Publishing Investor Charter and disclosure of Investor Complaints by Investment Advisers on their websites/mobile applications

1. In order to facilitate investor awareness about various activities which an investor deals with while availing the services provided by investment advisers, SEBI has developed an Investor Charter for Investment Advisers. This Charter is a brief document containing details of service provided to investors, their rights, dos and don’ts, responsibilities, investor grievance handling mechanism and timelines thereof etc., at one single place, in a lucid language, for ease of reference.

2. All registered Investment Advisers are advised to bring to the notice of their clients the Investor Charter as provided at Annexure-A by prominently displaying on their websites and mobile applications. Investment Advisers not having websites/mobile applications shall, as a one-time measure, send Investor Charter to the investors on their registered e-mail address.

3. Further, SEBI issued Circular No. SEBI/HO/IMD/DF1/CIR/P/2019/169 dated December 27, 2019 which inter alia at Para 1 (iv) prescribed display of complaints status by Investment Advisers (IAs) on respective websites/mobile application. In order to further enhance transparency in grievance redressal, the Investment Advisers shall disclose the details of investor complaints by 7th of the succeeding month in the revised format as per Annexure-B on a monthly basis. The para 1 (iv) of the aforesaid circular stands modified accordingly. Investment Advisers not having websites/mobile applications shall send status of Investor Complaints to the investors on their registered email on a monthly basis in compliance of this circular.

4. Further, Investment advisers are advised to display link/option to lodge complaint with them directly on their websites and mobile apps. Additionally, link to SCORES website/ link to download mobile app (SEBI SCORES) may also be provided.

5. The disclosure requirements under this circular shall come into effect from January 01, 2022.

6. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 29 of the SEBI (Investment Advisers) Regulations, 2013, to protect the interests of investors in securities and to promote the development of and to regulate the securities market.

7. The circular is available on SEBI website at www.sebi.gov.in under the categories “Info for – Investment Advisers” and “Legal framework – Circulars”.

Yours faithfully,

Dipanjan Mitra
Deputy General Manager
Tel: 022-26449204
Email: dipanjanm@sebi.gov.in