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INVESTOR CHARTER
Annexure A
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 on 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
Sr. Brief about the Activity / Expected Timelines for processing by the
no. Service DP after receipt of proper documents
1. Dematerialization of securities 7 days
2. Rematerialization of securities 7 days
3. Mutual Fund Conversion / 5 days
Destatementization
Page 1 of 4
INVESTOR CHARTER
Sr. Brief about the Activity / Expected Timelines for processing by the
no. Service DP after receipt of proper documents
4. Re-conversion / 7 days
Restatementisation of Mutual
fund units
5. Transmission of securities 7 days
6. Registering pledge request 15 days
7. Closure of demat account 30 days
8. Settlement Instruction Depositories to accept physical DIS for pay-in
of securities upto 4 p.m and DIS in electronic
form upto 6 p.m on T+1 day
(2) Depositories provide special services like pledge, hypothecation, internet based
services etc. in addition to their core services and these include
Sr. Type of Activity /Service Brief about the Activity / Service
no.
1. Value Added Services Depositories also provide value added
services such as
a. Basic Services Demat Account(BSDA)1
[link to be provided by the
Participants]
b. Transposition cum dematerialization2
[link to be provided by the
Participants]
c. Linkages with Clearing System3 [link to
be provided by the Participants]
d. Distribution of cash and non-cash
corporate benefits (Bonus, Rights, IPOs
etc.)
2. Consolidated Account statement CAS is issued 10 days from the end of the
(CAS) month (if there were transactions in the
previous month) or half yearly (if no
transactions).
3. Digitalization of services Depositories offer below technology
provided by the depositories solutions and e-facilities to their demat
account holders through DPs:
Page 2 of 4
INVESTOR CHARTER
Sr. Type of Activity /Service Brief about the Activity / Service
no.
a. E-account opening4 [link to be provided
by the Participants]
b. Online instructions for execution5 [link to
be provided by the Participants]
c. e-DIS / Demat Gateway6 [link to be
provided by the Participants]
d. e-CAS facility7 [link to be provided by the
Participants]
e. Miscellaneous services8 [link to be
provided by the Participants]
5. Details of Grievance Redressal Mechanism
(1) The Process of investor grievance redressal
1. Investor Complaint/ Investor can lodge complaint/ grievance against the
Grievances Depository/DP in the following ways:
a. Electronic mode -
(i) SCORES (a web based centralized grievance
redressal system of SEBI)
[https://www.scores.gov.in/scores/Welcome.h
tml]
(ii) Respective Depository’s web portal dedicated
for the filing of compliant
[https://www.epass.nsdl.com/complaints/webs
itecomplaints.aspx]
(iii) Emails to designated email IDs of Depository
[relations@nsdl.co.in]
The complaints/ grievances lodged directly with the
Depository shall be resolved within 30 days.
2. Investor Grievance If no amicable resolution is arrived, then the Investor
Redressal Committee has the option to refer the complaint/ grievance to
of Depository the Grievance Redressal Committee (GRC) of the
Depository. Upon receipt of reference, the GRC will
endeavor to resolve the complaint/ grievance by
hearing the parties, and examining the necessary
information and documents.
Page 3 of 4
INVESTOR CHARTER
3. Arbitration The Investor may also avail the arbitration
proceedings mechanism set out in the Byelaws and Business
Rules/Operating Instructions of the Depository in
relation to any grievance, or dispute relating to
depository services. The arbitration reference shall
be concluded by way of issue of an arbitral award
within 4 months from the date of appointment of
arbitrator(s).
(2) For the Multi-level complaint resolution mechanism available at the Depositories9
[link to be provided by the Participants]
6. Guidance pertaining to special circumstances related to market activities:
Termination of the Depository Participant
Sr. Type of special circumstances Timelines for the Activity/ Service
No.
1. Depositories to terminate the Client will have a right to transfer all its
participation in case a participant no securities to any other Participant of its
longer meets the eligibility criteria choice without any charges for the
and/or any other grounds as transfer within 30 days from the date of
mentioned in the bye laws like intimation by way of letter/email.
suspension of trading member by the
Stock Exchanges.
Participant surrenders the participation
by its own wish.
7. Dos and Don’ts for Investors10 [link to be provided by the Participants]
8. Rights of investors11 [link to be provided by the Participants]
9. Responsibilities of Investors12 [link to be provided by the Participants]
Page 4 of 4
Annexure B
INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER
This document contains the contents in main Charter mapped with the same
superscript.
Para 4 (2) of Investor Charter
Point 1: Value Added Services
a. Basic Services Demat Account (BSDA)1: The facility of BSDA with limited
services for eligible individuals was introduced with the objective of achieving
wider financial inclusion and to encourage holding of demat accounts. No
Annual Maintenance Charges (AMC) shall be levied, if the value of securities
holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000,
AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are
no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100
as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs
2,00,000.
b. Transposition cum dematerialization2: In case of transposition-cum-
dematerialisation, client can get securities dematerialised in the same account
if the names appearing on the certificates match with the names in which the
account has been opened but are in a different order. The same may be done
by submitting the security certificates along with the Transposition Form and
Demat Request Form.
c. Linkages with Clearing System3 for actual delivery of securities to the clearing
system from the selling brokers and delivery of securities from the clearing
system to the buying broker.
Point 3: Digitization of services provided by the depositories
a. E-account opening4: Account opening through digital mode, popularly known
as “On-line Account opening”, wherein investor intending to open the demat
account can visit DP website, fill in the required information, submit the
required documents, conduct video IPV and demat account gets opened
without visiting DPs office.
b. Online instructions for execution5: internet-enabled services like Speed-e
(NSDL) & Easiest (CDSL) empower a demat account holder in managing
his/her securities ‘anytime-anywhere’ in an efficient and convenient manner
and submit instructions online without the need to use paper. These facilities
allows Beneficial Owner (BO) to submit transfer instructions and pledge
instructions including margin pledge from their demat account. The instruction
facilities are also available on mobile applications through android, windows
and IOS platforms.
c. e-DIS / Demat Gateway:6 Investors can give instructions for transfer of
securities through e-DIS apart from physical DIS. Here, for on-market transfer
of securities, investors need to provide settlement number along with the ISIN
and quantity of securities being authorized for transfer. Client shall be required
to authorize each e-DIS valid for a single settlement number / settlement date,
by way of OTP and PIN/password, both generated at Depositories end.
Necessary risk containment measures are being adopted by Depositories in
this regard.
d. e-CAS facility7: Consolidated Account Statements are available online and
could also be accessed through mobile app to facilitate the investors to view
their holdings in demat form.
e. Miscellaneous services8: Transaction alerts through SMS, e-locker facilities,
chatbots for instantaneously responding to investor queries etc. have also been
developed.
Para 5(2) of Investor Charter
Complaint Resolution process at Depositories9
Complaint Resolution process at Depositories
Client not satisfied Client not satisfied
with GRC order with Appellate
award
Complaint lodged Place before -Refer to -Refer to Appellate
with DP through Grievance arbitration arbitration
electronic mode Redressal
-Arbitration in -award in clients
or physical mode Committee (GRC)
clients favour favour
No amicable Client not satisfied
resolution with Arbitration U/s 34 before
award
Court
Investor Helpline Details of Depositories
Para 7 of Investor Charter
Dos and Don’ts for Investor10
Sl Guidance
No.
1. Always deal with a SEBI registered Depository Participant for opening a
demat account.
2. Read all the documents carefully before signing them.
3. Before granting Power of attorney to operate your demat account to an
intermediary like Stock Broker, Portfolio Management Services (PMS) etc.,
carefully examine the scope and implications of powers being granted.
4. Always make payments to registered intermediary using banking channels.
No payment should be made in name of employee of intermediary.
5. Accept the Delivery Instruction Slip (DIS) book from your DP only (pre-
printed with a serial number along with your Client ID) and keep it in safe
custody and do not sign or issue blank or partially filled DIS slips.
Always mention the details like ISIN, number of securities accurately. In
case of any queries, please contact your DP or broker and it should be
signed by all demat account holders.
Strike out any blank space on the slip and Cancellations or corrections on
the DIS should be initialed or signed by all the account holder(s).
Do not leave your instruction slip book with anyone else.
Do not sign blank DIS as it is equivalent to a bearer cheque.
6. Inform any change in your Personal Information (for example address or
Bank Account details, email ID, Mobile number) linked to your demat
account in the prescribed format and obtain confirmation of updation in
system
7. Mention your Mobile Number and email ID in account opening form to
receive SMS alerts and regular updates directly from depository.
8. 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/updation.
9. Do not share password of your online trading and demat account with
anyone.
Sl Guidance
No.
10. Do not share One Time Password (OTP) received from banks, brokers, etc.
These are meant to be used by you only.
11. Do not share login credentials of e-facilities provided by the depositories
such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12. Demat is mandatory for any transfer of securities of Listed public limited
companies with few exceptions.
13. If you have any grievance in respect of your demat account, please write to
designated email IDs of depositories or you may lodge the same with SEBI
online at https://scores.gov.in/scores/Welcome.html
14. Keep a record of documents signed, DIS issued and account statements
received.
15. 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 the DP or your respective Depository.
16. Appoint a nominee to facilitate your heirs in obtaining the securities in your
demat account, on completion of the necessary procedures.
17. Register for Depository's internet based facility or download mobile app of
the depository to monitor your holdings.
18. 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.
19. Do not follow herd mentality for investments. Seek expert and professional
advice for your investments
20. Beware of assured/fixed returns.
Para 8 of Investor Charter
Rights of investors11
Receive a copy of KYC, copy of account opening documents.
No minimum balance is required to be maintained in a demat account.
No charges are payable for opening of demat accounts.
If executed, receive a copy of Power of Attorney. However, Power of Attorney is
not a mandatory requirement as per SEBI / Stock Exchanges. You have the right
to revoke any authorization given at any time.
You can open more than one demat account in the same name with single DP/
multiple DPs.
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, take up the matter with the Depositories.
Pledge and /or any other interest or encumbrance can be created on demat
holdings.
Right to give standing instructions with regard to the crediting of securities in
demat account.
Investor can exercise its right to freeze/defreeze his/her demat account or
specific securities / specific quantity of securities in the account, maintained with
the DP.
In case of any grievances, Investor has right to approach Participant or
Depository or SEBI for getting the same resolved within prescribed timelines.
Every eligible investor shareholder has a right to cast its vote on various
resolutions proposed by the companies for which Depositories have developed
an internet based ‘e-Voting’ platform.
Receive information about charges and fees. Any charges/tariff agreed upon
shall not increase unless a notice in writing of not less than thirty days is given to
the Investor.
Para 9 of Investor Charter
Responsibilities of Investors12
• Deal with a SEBI registered DP for opening demat account, KYC and Depository
activities.
• Provide complete documents for account opening and KYC (Know Your Client).
Fill all the required details in Account Opening Form / KYC form in own
handwriting and cancel out the blanks.
• Read all documents and conditions being agreed before signing the account
opening form.
• Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a
serial number along with client ID) and keep it in safe custody and do not sign or
issue blank or partially filled DIS.
• Always mention the details like ISIN, number of securities accurately.
• Inform any change in information linked to demat account and obtain
confirmation of updation in the system.
• Regularly verify balances and demat statement and reconcile with trades /
transactions.
• Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat
account.
• Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks /
securities promising huge profits.