SEBI updates Investor Charter to include investor info confidentiality, right to exit services

In SCORES 2.0, investor complaints are taken up directly with SEBI registered intermediaries/regulated entities.

The market regulator has updated its investor charter to include ensuring confidentiality of investor information and providing the right to exit at fair and reasonable terms from the securities market related products or services.

Investor charter  captures the vision of the regulator, rights and responsibilities of investors, investor grievance redressal mechanism and Do’s and Don’ts for investing in securities market.

A press statement issued on Friday, December 6, the Securities and Exchange Board of India (SEBI) also said that the grievance redressal mechanism and alternative dispute resolution mechanism have been strengthened with the launch of SCORES 2.0 and SMART Online Dispute Resolution (ODR).

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In SCORES 2.0, investor complaints are taken up directly with SEBI registered intermediaries/regulated entities and the designated bodies for first level review, with SEBI taking up all complaints at the stage of second level review. SMART ODR Portal facilitates online conciliation and online arbitration for resolution of disputes arising in the Indian Securities Market.

New elements in charter

The updated charter says, "To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information."

It also says that investors have the right to "Get quality services from SEBI recognized Market Infrastructure Institutions and SEBI registered intermediaries/regulated entities/ Asset Management Companies including right to exit at fair and reasonable terms from the securities market related product or service and avail Online Dispute Resolution mechanism for the disputes, if any, arising therefrom.