Recently the Securities and Exchange Board of India (SEBI) has unveiled the “Investors Charter”.
The objective of the Investors Charter is to protect the interests of investors by enabling them to understand the potential risks associated with investments and to invest in a fair, transparent and safe market.
In the Budget 2021, the proposal of the Investor Charter was introduced with an aim to protect investors from malicious selling of all types of financial products.
The move assumes significance as the total number of retail investors grew by 14.2 million in FY21.
The Charter outlines the rights and responsibilities of investors.
The rights include-
- Achieving a fair and equitable solution
- Timely redressal of grievances of investors registered in SEBI Complaint Address System (SCORES) portal.
SCORES is an online platform designed to help investors lodge their complaints with SEBI against listed companies and intermediaries.
- Transactions only with SEBI recognized institutions and SEBI registered or regulated entities
- Updating their contact details in case of any change.
- Ensuring that complaints are registered within the stipulated time frame.
- Their accounts are operated for their profit only. From January 2022, all SEBI regulated entities will have to disclose the average time taken for resolution of each complaint on their respective websites.
Source – The Hindu