With a view to enhancing awareness of investors about the various activities which an investor deals with while availing the services provided by investment advisers, an investor charter has been published by SEBI on December 13, 2021.

It details different services provided by the investment advisers to the investors like details of service provided to investors, their rights, dos and don’ts, responsibilities, investor grievance handling and timelines thereof etc.

The same may be accessed from below link:

http://csmeghakyal.in/2021/12/13/ia-investor-charter-december-13-2021/

Primary action point(s) to note here are as below (Applicable from January 01, 2022):

1. Display Annexure A on your websites and mobile applications. If website or mobile application is not there, send copy of Annexure A to your clients via email once and to new clients as part of on-boarding.
2. Disclose the status of complaints on your website in format as provided in Annexure B of the circular by 7th of the succeeding month. If website is not there, send it on their registered email on a monthly basis.
3. Display link/option to lodge complaint with you directly on your websites and mobile apps. Additionally, display link to SCORES website/ link to download mobile app (SEBI SCORES) may also be provided.
4. Execute advisory agreement with all the prescribed clauses and share the agreement copy with your clients
5. Provide full disclosure about your business, affiliations, compensation in the agreement.
6. Disclose not to access client’s accounts or holdings for offering advice.
7. Execute risk profiling and suitability assessment and maintain the requisite document. Advice should be based on the same.
8. Disclose the risk profile to the clients
9. Obtain KRA and CKYC registration. Complete KYC of clients.
10. Conduct compliance audit of your investment advisory activities annually.
11. Disclose the name, proprietor name, type of registration, registration number, validity, complete address with telephone numbers and associated SEBI regional/local Office details in your website.
12. Only qualified and certified employees to be employed
13. Deal with clients only from official number
14. Maintain records of interactions, with all clients including prospective clients (prior to onboarding), where any conversation related to advice has taken place.
15. Ensure that grievances are resolved within 30 days

Given the current scenario, we would once again recommend you to have a relook at the process of compliance followed by your organization and to be ready before the deadline.

As and when there is a new information in this regard, we would try to disseminate the same to you for information and compliance.

For any query you can connect to us at +91 98197 28359 or email your queries to mail@csmeghakyal.in.

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Disclaimer: The views and opinions expressed herein are my personal views and opinions and do not necessarily reflect the official policy and position of any other agency, organization, employer or company. Assumptions made in the analysis are not of the position of any entity other than me. I make no representations as to accuracy, completeness, correctness, suitability or validity of any information and will not be liable for any errors, omissions or damages arising from its use. It is reader’s responsibility to verify their own facts.