INVESTOR CHARTER

Annexure A1

1. Vision

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

2. Mission

To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest ofinvestors.

To provide timely and accurate information to investors with regard to their holding and transfer of securities held bythem.

To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about InvestorRights.

3. Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP).

4. Description of services provided by the Depository through Depository Participants (DP) to investors

(1) BasicServices

Sr. No.	Brief about the Activity / Service	Expected Timelines for processing by the DP after receipt of proper documents
1	Dematerialization of securities	7 days
2	Rematerialization of securities	7 days
3	Mutual Fund Conversion / Destatementization	5 days
4	Re-conversion / Restatementisation of Mutual fund units	7 days
5	Transmission of securities	7 days
6	Registering pledge request	15 days
7	Closure of demat account	30 days
8	Settlement Instruction	For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day. Note: ‘T’ refers ‘Trade Day’.

(2) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include

Sr. No.	Type of Activity /Service	Brief about the Activity / Service
1	Value Added Services	Depositories also provide value added services such as a. Basic Services Demat Account (BSDA)[pls see details in the Annexure below] b. Transposition cum dematerialization [pls see details in the Annexure below] c. Linkages with Clearing System [pls see details in the Annexure below] d. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.)
2	Consolidated Account statement (CAS)	CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3	Digitalization of services provided by the depositories	Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: a. E-account opening [pls see details in the Annexure below] b. Online instructions for execution [pls see details in the Annexure below] c. e-DIS / Demat Gateway d. e-CAS facility[pls see details in the Annexure below] e. Miscellaneous services [pls see details in the Annexure below]

5. Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal


1	Investor Complaint / Grievances	Investor can lodge complaint/ grievance against the Depository/DP in the following ways: a. Electronic mode- • (i) SCORES 2.0 (a web based centralized grievance redressal system of SEBI) https://scores.sebi.gov.in/ Two Level Review for complaint/grievance against DP: • First review done by Designated Body • Second review done by SEBI (ii) Respective Depository’s web portal dedicated for the filing of compliant https://investor.nsdl.com/portal/en/home (iii) Emails to designated email IDs of Depository and Depository Participant relations@nsdl.co.in Investercell@ashlarindia.com b. Offline Mode – Send the duly fill complaint form as per format given below The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days.
2	Online Dispute Resolution (ODR) platform for online Conciliation & arbitration	If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration https://smartodr.in/register.
3	Steps to be followed in ODR for Review, Conciliation & Arbitration	• Investor to approach Market Participant for redressal of complaint • If an investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal. • Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. • 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. • If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation. • 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. • If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. • The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.
4	Investor Grievance Redressal Committee of Depository	If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties, and examining the necessary information and documents.

6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant


1	• Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. • Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Annexure-A2

INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER

This document contains the contents in main Charter mapped with the same superscript.

Para 4 (2) of Investor Charter

Point 1: Value Added Services

a) Basic Services Demat Account (BSDA):


of Holdings in the Demat Account (Debt as well as other than debt securities combined)	Maximum Annual Maintenance Charges
Up to Rs. 4 lakhs	NIL
More than Rs. 4 lakhs but up to Rs. 10 lakhs	Rs. 100
More than Rs. 10 lakhs	Not a BSDA. Regular AMC may be levied.

b) Transposition cum dematerialization2:

In case of transposition-cum- dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.

c) Linkages with Clearing System3

for actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.

Point 3: Digitization of services provided by the depositories

a) E-account opening4:

Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.

b) Online instructions for execution5:

internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.

c) e-DIS / Demat Gateway:6

Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.

d) e-CAS facility7:

Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.

e) Miscellaneous services8:

Transaction alerts through SMS, e-locker facilities, chat bots for instantaneously responding to investor queries etc. have also been developed.

Para 5(2) of Investor Charter

Complaint Resolution process at Depositories9

Complaint Resolution process at Depositories

Para 7 of Investor Charter

Dos and Don’ts for Investor10

Guidance

Always deal with a SEBI registered Depository Participant for opening a demat account.
Read all the documents carefully before signing them.
Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
- Accept the Delivery Instruction Slip (DIS) book from your DP only (pre- printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips.
- Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat accountholders.
- Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the accountholder(s).
- Do not leave your instruction slip book with anyone else.
- Do not sign blank DIS as it is equivalent to a bearer cheque.
Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
Do not share password of your online trading and demat account with anyone.
Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.sebi.gov.in
Keep a record of documents signed, DIS issued and account statements received.
As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
Register for Depository's internet based facility or download mobile app of the depository to monitor your holdings.
Ensure that, both, your holding and transaction statements are receive periodically as instructed to your DP. You are entitled to receive a transactio statement every month if you have any transactions.
Do not follow herd mentality for investments. Seek expert and professional advice for your investments
Beware of assured / fixed returns.

Para 8 of Investor Charter

Rights of investors11

Receive a copy of KYC, copy of account opening documents.
No minimum balance is required to be maintained in a demat account.
No charges are payable for opening of demat accounts.
If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at anytime.
You can open more than one demat account in the same name with single DP/multiple DPs.
Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.
Pledge and /or any other interest or encumbrance can be created on demat holdings.
Right to give standing instructions with regard to the crediting of securities in demat account.
Investor can exercise its right to freeze / defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.
In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.
Receive information about charges and fees. Any charges / tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Para 9 of Investor Charter

Responsibilities of Investors12

Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
Provide complete documents for account opening and KYC (Know Your Client).
Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
Read all documents and conditions being agreed before signing the account opening form.
Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS.
Always mention the details like ISIN, number of securities accurately.
Inform any change in information linked to demat account and obtain confirmation of updation in the system.
Regularly verify balances and demat statement and reconcile with trades / transactions.
Appoint nominee(s) to facilitate heirs in obtaining the securities in their account.
Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.

Investor Charter – Stock Brokers

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.

MISSION

i) 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.

Services provided to Investors

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.
Settlement of client’s funds.
Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
Issuance of retention statement of funds.
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. exchange circulars.
Redressal of Investor’s grievances.

Rights of Investors

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.
Receive complete information about the risks, obligations, and costs of any investment before investing.
Receive recommendations consistent with your financial needs and investment objectives.
Receive a copy of all completed account forms and agreements.
Receive account statements that are accurate and understandable.
Understand the terms and conditions of transactions you undertake.
Access your funds in a timely manner and receive information about any restrictions or limitations on access.
Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties.
Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.

Various activities of Stock Brokers with timelines

Sr. No.	Activities	Expected Timelines
1	KYC entered into KRA System and CKYCR	10 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	30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out
10	‘Statement of Accounts’ for Funds, Securities and Commodities	Weekly basis (W ithin four trading days of following week)
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	30 days from the receipt of the complaint

DOs and DON’Ts for Investors

DOs	DON’Ts
Read all documents and conditions being agreed before signing the account opening form. Receive a copy of KYC, copy of account opening documents and Unique Client Code. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. Receive all information about brokerage, fees and other charges levied. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades. Receive funds and securities / commodities on time within 24 hours from pay-out. 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. 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 (30 or 90 days). In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.	Do not deal with unregistered stock broker. Do not forget to strike off blanks in your account opening and KYC. Do not submit an incomplete account opening and KYC form. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. 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. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. Do not opt for digital contracts, if not familiar with computers. Do not share trading password. Do not fall prey to fixed / guaranteed returns schemes. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits. Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

DOs

DON’Ts

Read all documents and conditions being agreed before signing the account opening form.
Receive a copy of KYC, copy of account opening documents and Unique Client Code.
Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
Receive all information about brokerage, fees and other charges levied.
Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.
Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.
Receive funds and securities / commodities on time within 24 hours from pay-out.
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.
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 (30 or 90 days).
In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.

Do not deal with unregistered stock broker.
Do not forget to strike off blanks in your account opening and KYC.
Do not submit an incomplete account opening and KYC form.
Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
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.
Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
Do not opt for digital contracts, if not familiar with computers.
Do not share trading password.
Do not fall prey to fixed / guaranteed returns schemes.
Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

Grievance Redressal Mechanism

Level 1 – 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 30 days of the receipt of the grievance.

Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange.

Complaints Resolution Process at Stock Exchange explained graphically:

Timelines for complaint resolution process at Stock Exchanges against stock brokers

Sr. No.	Type of Activity	Timelines for activity
1	Receipt of Complaint	Day of complaint (C Day).
2	Additional information sought from the Investor, if any, and provisionally forwarded to stock broker.	C + 7 Working days.
3	Registration of the complaint and Forwarding to the stock broker.	C+8 Working Days i.e. T day.
4	Amicable Resolution.	T+15 Working Days.
5	Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution.	T+16 Working Days.
6	Complete resolution process post GRC.	T + 30 Working Days.
7	In case where the GRC Member requires additional information, GRC order shall be completed within.	T + 45 Working Days.
8	Implementation of GRC Order.	On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order.
9	In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration	Within 7 days from receipt of order
10	If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs	Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor.
11	Stock Broker shall file for arbitration	Within 6 months from the date of GRC recommendation
12	In case the stock broker does not file for arbitration within 6 months	The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any.

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.

Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI) @ https://scores.gov.in/scores/W elcome.html