INVESTOR CHARTER – SEBI

Investor Charter in respect of Research Analysts (RAs)

Vision and Mission Statements for Investors

Vision
Invest with knowledge and safety.

Mission
Every investor should be able to invest in the right investment products based on their needs, manage and monitor them to meet their goals, access reports, and enjoy financial wellness.

Details of Business Transacted by the Research Analyst (RA)

The Research Analyst shall:

1. Publish research reports based on research activities.

2. Provide an independent and unbiased view on securities.

3. Offer unbiased recommendations, disclosing any financial interest in the recommended securities.

4. Provide research recommendations based on analysis of publicly available information and known observations.

5. Conduct audits annually.

6. Ensure that all advertisements, marketing, and promotional materials adhere to the Advertisement Code for Research Analysts.

7. Maintain records of interactions with all clients, including prospective clients (prior to onboarding), where any discussion related to research services has taken place.

Details of Services Provided to Investors (No Indicative Timelines)

Onboarding of Clients

• Sharing the terms and conditions of research services

• Completion of client KYC

Disclosures to Clients

The Research Analyst shall:

1. Disclose all material information required for an informed decision, including:

   • Business activities

   • Disciplinary history

   • Terms and conditions of research services

   • Details of associates

   • Risks and conflicts of interest, if any

2. Disclose the extent of use of Artificial Intelligence tools in providing research services.

3. While distributing third-party research reports, disclose any material conflict of interest of such third party or provide a web address directing recipients to the relevant disclosures.

4. Disclose any conflict of interest between research services and other activities of the Research Analyst.

5. Distribute research reports and recommendations to clients without discrimination.

6. Maintain confidentiality of research reports until they are made publicly available.

7. Respect client data privacy and protect against unauthorized use of confidential information.

8. Disclose service timelines and ensure adherence to those timelines.

9. Provide clear guidance and adequate caution while recommending complex or high-risk financial products/services.

10. Treat all clients with honesty and integrity.

11. Maintain confidentiality of investor information unless disclosure is required by law or consent is provided by the investor.

Grievance Redressal Mechanism and Access

Investors may lodge complaints against the Research Analyst through the following modes:

1. Directly with the Research Analyst

In case of any grievance or complaint, the investor may approach the concerned Research Analyst. The grievance shall be resolved at the earliest, but not later than 21 days from receipt.

2. SCORES / RAASB

• SCORES 2.0: SEBI’s centralized web-based grievance redressal system
  Website: https://scores.sebi.gov.in

Two-Level Review Process:

1. First review by the Research Analyst Administration and Supervisory Body (RAASB)

2. Second review by SEBI

Complaints may also be sent via email to the designated email ID of RAASB.

If the investor is not satisfied with the resolution, they may file a complaint on the SMART ODR platform for online conciliation or arbitration.

Physical Complaints

Office of Investor Assistance and Education
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C4-A, ‘G’ Block
Bandra-Kurla Complex, Bandra (E)
Mumbai – 400 051

Rights of Investors

Investors have the right to:

1. Privacy and confidentiality

2. Transparent practices

3. Fair and equitable treatment

4. Adequate and accurate information

5. Initial and ongoing disclosures

6. Receive all statutory and regulatory disclosures

7. Fair and truthful advertisements

8. Awareness of service parameters and turnaround times

9. Be informed of timelines for each service

10. Be heard and receive satisfactory grievance redressal

11. Timely resolution of grievances

12. Exit from financial products or services

13. Clear guidance and caution when dealing with complex and high-risk financial products and services

Additional Rights for Vulnerable Consumers:

• Access services in a suitable manner, including for differently-abled persons

• Provide feedback on financial products and services

• Protection against coercive, unfair, or one-sided contractual clauses

• Enforceability of rights and holding the Research Analyst accountable

Expectations from Investors (Responsibilities)

Do’s

1. Always deal with a SEBI-registered Research Analyst.

2. Verify the Research Analyst’s valid SEBI registration number.

3. Refer to the official SEBI list of registered Research Analysts:
   https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=14

4. Carefully review disclosures mentioned in research reports before investing.

5. Make payments only through banking channels and maintain duly signed receipts.

6. Use the Centralized Fee Collection Mechanism (CeFCoM) of RAASB, if applicable.

7. Verify research recommendations before buying or selling securities or applying in public offers.

8. Ask relevant questions and clear doubts before acting on recommendations.

9. Seek guidance, especially for complex or high-risk financial products and services.

10. Exercise the right to discontinue services as per agreed terms.

11. Provide feedback regarding services received.

12. Inform SEBI if any Research Analyst offers assured or guaranteed returns.

Don’ts

1. Do not provide funds for investment to the Research Analyst.

2. Do not fall prey to misleading advertisements or market rumors.

3. Do not get influenced by limited-period discounts, gifts, or incentives.

4. Do not share trading, demat, or bank account login credentials with the Research Analyst.