SEBI Updates Investor Charter for Advisers and Analysts

Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/80 & 81; Dated: 02.06.2025

In a move aimed at strengthening investor protection and promoting financial literacy, the Securities and Exchange Board of India (SEBI) has modified the Investor Charter applicable to Investment Advisers (IAs) and Research Analysts (RAs).

1. Objective – Enhancing Financial Inclusion and Literacy

The revised charter is designed to enhance:

• Financial inclusion, by making advisory and research services more transparent and accessible.
• Financial literacy, by educating investors on their rights, responsibilities, and the functioning of regulated entities.

2. Key Additions in the Modified Investor Charter

The updated charter now includes the following comprehensive components:

2.1 Vision and Mission Statements for Investors

• Clearly defined goals to empower investors with knowledge and confidence in dealing with IAs and RAs.

2.2 Details of Business Transacted by IAs and RAs

• Overview of the scope of services provided by investment advisers and research analysts.
• Helps investors understand the exact nature of advice or analysis they are receiving.

2.3 Grievance Redressal Mechanism

• Step-by-step procedure for lodging complaints.
• Timelines for resolution and escalation matrix.
• Contact details of concerned redressal authorities, including SEBI SCORES platform.

2.4 Investors’ Rights

• Rights related to transparent fee disclosures, professional conduct, access to information, and fair treatment by IAs and RAs.

2.5 Expectations from Investors

• Advisory for investors to stay informed, read disclaimers carefully, and verify the registration status of IAs/RAs before engaging.

2.6 Disclosure of Investor Complaints

• IAs and RAs are now mandated to disclose the format and status of investor complaints on a monthly basis.
• This improves accountability and allows investors to assess the service track record of an IA/RA.

3. Impact and Compliance

This update aligns with SEBI’s ongoing initiatives to ensure:

• Better informed decision-making by investors,
• Strengthened investor confidence in regulated advisory services, and
• Higher standards of transparency and professionalism among market intermediaries.

All IAs and RAs are required to update their public disclosures and compliance procedures in line with the revised charter.

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