Investor Charter

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

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

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

Dos and Don’ts for Investors

(Link to be provided by the Depositories)

Sr. No. | Guidance

i. Always deal with a SEBI-registered Depository Participant (DP) for opening a demat account.

ii. Read all the documents carefully before signing them.

iii. Before granting Power of Attorney to operate your demat account to an intermediary such as a Stock Broker or Portfolio Management Services (PMS), carefully examine the scope and implications of the powers being granted.

iv. Always make payments to registered intermediaries using banking channels. No payment should be made in the name of any employee of the intermediary.

v. Accept the Delivery Instruction Slip (DIS) book only from your DP (pre-printed with a serial number along with your Client ID) and keep it in safe custody.
Do not sign or issue blank or partially filled DIS slips.
Always mention the details like ISIN and number of securities accurately.
In case of any queries, contact your DP or broker. The DIS should be signed by all demat account holders.
Strike out any blank spaces on the slip. Cancellations or corrections on the DIS should be initialed or signed by all account holders.
Do not leave your instruction slip book with anyone else.
Do not sign blank DIS, as it is equivalent to a bearer cheque.

vi. Inform any change in your personal information (e.g., address, bank account details, email ID, or mobile number) linked to your demat account in the prescribed format and obtain confirmation of the update in the system.

vii. Mention your mobile number and email ID in the account opening form to receive SMS alerts and regular updates directly from the depository.

viii. 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 or updation.

ix. Do not share the password of your online trading or demat account with anyone.

x. Do not share One Time Passwords (OTPs) received from banks, brokers, etc. These are meant to be used by you only.

xi. Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e, or easiest with anyone else.

xii. Demat is mandatory for any transfer of securities of listed public limited companies.

xiii. If you have any grievance in respect of your demat account, please write to the designated email IDs of depositories, or you may lodge the same with SEBI online at https://scores.sebi.gov.in.

xiv. Keep a record of all documents signed, DIS issued, and account statements received.

xv. 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 your DP or respective Depository immediately.

xvi. Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account upon completion of the necessary procedures.

xvii. Register for the Depository’s internet-based facility or download the mobile app of the depository to monitor your holdings conveniently.

xviii. Ensure that both your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.

xix. Do not follow herd mentality for investments. Always seek expert and professional advice before making investment decisions.

xx. Beware of any schemes offering assured or fixed returns.

Rights of Investors

(Link to be provided by the Depositories)

Sr. No. | Guidance

i. Receive a copy of KYC and a copy of account opening documents.

ii. No minimum balance is required to be maintained in a demat account.

iii. No charges are payable for opening a demat account.

iv. If executed, receive a copy of Power of Attorney (PoA). However, Power of Attorney is not a mandatory requirement as per SEBI or Stock Exchanges. You have the right to revoke any authorization given at any time.

v. You can open more than one demat account in the same name with a single DP or multiple DPs.

vi. 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, escalate the matter to the Depositories.

vii. Pledge and/or any other interest or encumbrance can be created on demat holdings.

viii. Right to give standing instructions regarding the crediting of securities into the demat account.

ix. Investor can exercise the right to freeze/defreeze his/her demat account or specific securities/quantities of securities maintained with the DP.

x. In case of any grievances, the investor has the right to approach the Participant, Depository, or SEBI for resolution within the prescribed timelines.

xi. Every eligible investor/shareholder has the right to cast a vote on resolutions proposed by companies through the Depositories’ internet-based e-Voting platform.

xii. Receive information about charges and fees. Any agreed charges or tariff shall not increase without a written notice of at least 30 days to the investor.

xiii. Right to indemnification for any loss caused due to negligence of the Depository or the Participant.

xiv. Right to opt out of the Depository system in respect of any security.

Responsibilities of Investors

(Link to be provided by the Depositories)

Sr. No. | Guidance

i. Deal only with a SEBI-registered Depository Participant (DP) for opening a demat account, completing KYC, and conducting all Depository activities.

ii. Provide complete documents for account opening and KYC (Know Your Client).
Fill in all required details in the Account Opening Form / KYC Form in your own handwriting, and cancel out all blank spaces.

iii. Read all documents and terms & conditions carefully before signing the account opening form.

iv. Accept the Delivery Instruction Slip (DIS) book only from your DP (pre-printed with a serial number along with your Client ID).
Keep it in safe custody and do not sign or issue blank or partially filled DIS slips.

v. Always mention accurate details such as ISIN and number of securities in all transactions.

vi. Inform immediately about any change in personal or account-related information linked to your demat account and obtain confirmation of updation in the system.

vii. Regularly verify your balances and demat statements, and reconcile them with your trades and transactions.

viii. Appoint nominee(s) to facilitate your heirs in obtaining the securities held in your demat account.

ix. Do not fall prey to fraudulent emails or SMSs luring you to trade in stocks or securities with false promises of huge profits.

Code of Conduct for Depositories

(Link to be provided by the Depositories)
(Part D of Third Schedule of SEBI (Depositories and Participants) Regulations, 2018)

A Depository shall:

(a) Always abide by the provisions of the Securities and Exchange Board of India Act, the Depositories Act, 1996, and any Rules, Regulations, Circulars, Guidelines, or other directions issued by the SEBI from time to time.

(b) Adopt appropriate due diligence measures in all its operations.

(c) Take effective measures to ensure implementation of a proper risk management framework and uphold good governance practices.

(d) Take appropriate measures for investor protection and investor education.

(e) Treat all its applicants and members in a fair and transparent manner.

(f) Promptly inform SEBI of any violations of the provisions of the SEBI Act, Depositories Act, 1996, or related rules, regulations, circulars, or guidelines by any of its issuers or issuer’s agents.

(g) Take a proactive and responsible approach toward safeguarding the interests of investors, maintaining the integrity of its systems, and protecting the securities market.

(h) Endeavour to introduce best business practices among itself and its members.

(i) Act with utmost good faith and avoid conflicts of interest in the conduct of its functions.

(j) Not indulge in unfair competition that may harm the interests of other depositories, their participants, or investors, or place them in a disadvantageous position while competing for or executing any assignment.

(k) Segregate roles and responsibilities of key management personnel within the depository, including:
a. Clearly mapping legal and regulatory duties to the concerned position.
b. Defining delegation of powers for each position.
c. Assigning regulatory, risk management, and compliance responsibilities to relevant business and support teams.

(l) Be responsible for the acts or omissions of its employees in the conduct of its business.

(m) Monitor compliance with rules and regulations by participants, ensuring that their conduct safeguards the interests of investors and maintains the integrity of the securities market.

Code of Conduct for Participants

(Link to be provided by the Depositories)
(Part A of Third Schedule of SEBI (Depositories and Participants) Regulations, 2018)

1. A Participant shall make all efforts to protect the interests of investors.

2. A Participant shall always endeavour to:
(a) Render the best possible advice to clients, having regard to their needs, environment, and the Participant’s professional skills.
(b) Ensure that all professional dealings are carried out in a prompt, effective, and efficient manner.
(c) Ensure that inquiries from investors are dealt with adequately.
(d) Ensure that grievances of investors are redressed without delay.

3. A Participant shall maintain high standards of integrity in all dealings with clients and other intermediaries in the conduct of its business.

4. A Participant shall be prompt and diligent in:

• Opening of beneficial owner accounts,

• Dispatch of dematerialisation and rematerialisation request forms,

• Execution of debit instruction slips, and

• All other activities undertaken on behalf of beneficial owners.

5. A Participant shall endeavour to resolve all complaints against it, or in respect of its activities, as quickly as possible and not later than one month from the date of receipt.

6. A Participant shall not increase charges or fees for services rendered without proper advance notice to beneficial owners.

7. A Participant shall not indulge in unfair competition likely to harm the interests of other participants or investors, or place them in a disadvantageous position while competing for or executing any assignment.

8. A Participant shall not make exaggerated statements, oral or written, to clients about its qualifications, capabilities, or achievements in rendering services.

9. A Participant shall not divulge client information to other clients, the press, or any person, except with client approval or when disclosure is legally required under any Act, Rule, or Regulation.

10. A Participant shall co-operate with SEBI as and when required.

11. A Participant shall maintain the required level of knowledge and competency and abide by the provisions of the Act, Rules, Regulations, Circulars, and directions issued by SEBI. It shall also comply with awards passed by the SEBI Ombudsman under the SEBI (Ombudsman) Regulations, 2003.

12. A Participant shall not make untrue statements or suppress material facts in any documents, reports, papers, or information furnished to SEBI.

13. A Participant shall not neglect, fail, or refuse to submit to SEBI or other registered agencies any books, documents, correspondence, or papers as requested from time to time.

14. A Participant shall ensure that SEBI is promptly informed of any action, legal proceeding, or investigation initiated against it for material breach or non-compliance with any law, rule, regulation, or SEBI directive.

15. A Participant shall maintain a proper inward system for all types of mail received, in all forms.

16. A Participant shall follow the Maker–Checker concept in all its activities to ensure data accuracy and prevent unauthorised transactions.

17. A Participant shall take adequate steps to ensure continuity of data and record keeping, and that such data or records are not lost or destroyed.
For electronic records, up-to-date backups must always be maintained.

18. A Participant shall provide adequate freedom and powers to its Compliance Officer for the effective discharge of duties.

19. A Participant shall ensure satisfactory internal control procedures, and maintain adequate financial and operational capabilities to mitigate potential losses arising from theft, fraud, misconduct, or omissions.

20. A Participant shall be responsible for the acts or omissions of its employees and agents in the conduct of its business.

21. A Participant shall ensure that senior management and decision-makers have timely access to all relevant business information.

22. A Participant shall ensure that good corporate policies and governance practices are in place.