SEBI Modifies Investor Charter for Stock Brokers to Boost Financial Consumer Protection

Circular SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2025/22 dated 21-02-2025

SEBI, with a view to enhance financial consumer protection alongside enhanced financial inclusion and financial literacy, has issued the modified investor charter for stock brokers. The modified charter includes vision, mission, services provided to investors by brokers, Dos and Don’ts for investors, grievance redressal mechanism, handling of investor’s claims in case of a trading member’s default, and the format for investor complaints data.

The vision for investor charter is 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.

Stock Exchanges are directed to advise Stock Brokers to bring the Investor Charter for Stock Brokers to the attention of their clients (existing as well as new clients) by disclosing it on their respective websites, making it available at prominent places in the office, providing a copy of the Investor Charter as part of the account opening kit to the clients, and communicating it through e-mails/ letters, etc.

Further, all the Stock Brokers shall continue to disclose on their respective websites the data on complaints received against them or against issues dealt by them and redressal thereof, at the latest by the 7th of the succeeding month, as per the format attached in the circular.

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