Investor Charter
DISCLOSURE : In order to facilitate investor awareness about various activities which an investor deals with, SEBI and Exchanges has prepared an Investor Charter inter-alia detailing the services provided to Investors which is displayed here for Investor’s Information.
Investor Charter - Stock Broker
Portfolio Manager
A. Vision and Mission Statements for investors
Vision
To implement diligently researched customised investment strategies which help investors meet their long-term financial goals in a risk appropriate manner.
Mission
To ensure that the PMS industry provides a viable investment avenue for wealth creation by adopting high levels of skill, integrity, transparency and accountability.
B. Details of business transacted by the organization with respect to the investors
-
appropriate risk profiling of investors
-
to provide Disclosure Document to investors
-
executing the PMS agreement
-
Making investment decisions on behalf of investors (discretionary) or investment decisions taken at the discretion of the Investor (nondiscretionary) or advising investors regarding their investment decisions (advisory), as the case may be.
C. Details of services provided to investors and estimated timelines
-
Discretionary & Non-Discretionary Portfolio Management Services (PMS):
Under these services, all an investor has to do, is to give his portfolio in any form i.e. in stocks or cash or a combination of both. The minimum size of the portfolio under the Discretionary and/ or Non-Discretionary Funds Management Service should be Rs.50 lakhs as per the current SEBI Regulations. However, the PMS provider reserves the right to prescribe a higher threshold product-wise or in any other manner at its sole discretion. The PMS provider will ascertain the investor’s investment objectives to achieve optimal returns based on his risk profile. Under the Discretionary Portfolio Management service, investment decisions are at the sole discretion of the PMS provider if they are in sync with the investor’s investment objectives. Under the Non-Discretionary Portfolio Management service, investment decisions taken at the discretion of the Investor. -
Investment Advisory Services:
Under these services, the Client is advised on buy/sell decision within the overall profile without any back-office responsibility for trade execution, custody of securities or accounting functions. The PMS provider shall be solely acting as an Advisor to the Client and shall not be responsible for the investment/divestment of securities and/or administrative activities on the client’s portfolio. The PMS provider shall act in a fiduciary capacity towards its Client and shall maintain arm’s length relationship with its other activities. The PMS provider shall provide advisory services in accordance with guidelines and/or directives issued by the regulatory authorities and/or the Client from time to time in this regard. -
Client On-boarding
a. Ensuring compliance with KYC and AML guidelines.
b. franking & signing the Power of Attorney to make investment decisions on behalf of the investor
c. opening demat account and funding of the same from the investor’s verified bank account and/or transfer of securities from verified demat
account of the investor and
d. Mapping the said demat account with Custodian. -
Ongoing activities
a. To provide periodic statements to investors as provided under the PM Regulations 2020 and other SEBI notifications and circulars (“PM
Regulations”) and
b. Providing each client an audited account statement on an annual basis which includes all the details as required under the PM Regulations. -
Fees and Expenses
Charging and disclosure of appropriate fees & expenses in accordance with the PM Regulations. -
Closure and Termination
Upon termination of PMS Agreement by either party, the securities and the funds lying in the account of the investor shall be transferred to the verified bank account/ demat account of the investor -
Grievance Redressal
Addressing in a time bound manner investor’s queries, service requests and grievances, if any, on an ongoing basis.
Timelines of the services provided to investors are as follows:
Notes:
-
The number of days in the above timelines indicate clear working days
D. Details of grievance redressal mechanism and how to access it
-
It is mandatory for every PMS provider to register itself on SEBI SCORES (SEBI Complaint Redress System). SCORES is a centralised online complaintresolution system through which the complainant can take up his grievanceagainst the PMS provider and subsequently view its status. (https://scores.gov.in/scores/Welcome.html )
-
The details such as the name, address and telephone number of the investor relations officer of the PMS provider who attends to the investor queries and complaint should be provided in the PMS Disclosure document.
-
The grievance redressal and dispute mechanism should be mentioned in the Disclosure Document.
-
Investors can approach SEBI for redressal of their complaints. On receipt of complaints, SEBI takes up the matter with the concerned PMS provider and follows up with them.
-
Investors may send their complaints to: Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan. Plot No. C4- A, ‘G’ Block, BandraKurla Complex, Bandra (E), Mumbai - 400 051.
E. Expectations from the investors (Responsibilities of investors)
-
Check registration status of the intermediary from SEBI website before availingservices.
-
Submission of KYC documents and application form in a timely manner with signatures in appropriate places and with requisite supporting documents.
-
Read carefully terms and conditions of the agreement before signing the same.
-
Thorough study of the Disclosure Documents of the PMS to accurately understand the risks entailed by the said investment in PMS.
-
Accurate and sincere answers given to the questions asked in the ‘Risk Questionnaire’ shall help the PMS provider properly assess the risk profile of theinvestor.
-
Thorough study of the quarterly statements sent by the PMS provider to the investor intimating him about the portfolio’s absolute and relative performance,its constituents and its risk profile.
-
Ensure providing complete details of negative list of securities as part of freeze instructions at the time of entering into PMS agreement and every time thereafter for changes, if any, in a timely manner.
-
To update the PMS provider in case of any change in the KYC documents and personal details and to provide the updated KYC along with the required proof.
Depository Participant
1. Vision
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.
2. Mission
-
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.
3. Details of business transacted by the Depository and Depository Participant (DP)
-
A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available in the link https://nsdl.co.in/dpsch.php
4. Description of services provided by the Depository through Depository Participants (DP) to investors
(1) Basic Services
(2) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include
5. Details of Grievance Redressal Mechanism
(1) The Process of investor grievance redressal
6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant