Investor Charter
Modified on: Fri, 24 Jun, 2022 at 2:47 PM
VISION
To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.
MISSION
To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
To establish and maintain a relationship of trust and ethics with the investors.
To observe highest standard of compliances and transparency.
To always keep ‘protection of investors’ interest’ as goal while providing service.
S.No. | Activities | Expected Timelines |
1. | KYC entered into KRA System and CKYCR | 10 days of account opening |
2. | Client Onboarding | Immediate, but not later than one week |
3. | Order execution | Immediate on receipt of order, but not later than the same day |
4. | Allocation of Unique Client Code | Before trading |
5. | Copy of duly completed Client Registration Documents to clients | 7 days from the date of upload of Unique Client Code to the Exchange by the trading member |
6. | Issuance of contract notes | 24 hours of execution of trades |
7. | Collection of upfront margin from client | Before initiation of trade |
8. | Issuance of intimations regarding other margin due payments | At the end of the T day |
9. | Settlement of client funds | 30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out |
10. | ‘Statement of Accounts’ for Funds, Securities and Commodities | Weekly basis (Within four trading days of following week) |
11. | Issuance of retention statement of funds/commodities | 5 days from the date of settlement |
12. | Issuance of Annual Global Statement | 30 days from the end of the financial year |
13. | Investor grievances redressal | 30 days from the receipt of the complaint |
Dos and Don'ts
Dos Read all documents and conditions being agreed before signing the account opening form.
Receive a copy of KYC, copy of account opening documents and Unique Client Code.
Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
Receive all information about brokerage, fees and other charges levied.
Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.
Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.
Receive funds and securities / commodities on time within 24 hours from pay-out.
Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.
Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days). In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. | Don'ts Do not deal with unregistered stock broker.
Do not forget to strike off blanks in your account opening and KYC.
Do not submit an incomplete account opening and KYC form
Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
Do not opt for digital contracts, if not familiar with computers.
Do not share trading password.
Do not fall prey to fixed / guaranteed returns schemes.
Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
Do not follow herd mentality for investments. Seek expert and professional advice for your investments. |
Level 1 – Approach the Stock Broker at the designated Investor Grievance e-mail ID: ig@naviamarkets.com of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt of the grievance.
Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange. Complaints Resolution Process at Stock Exchange explained graphically:
S. No. | Type of Activity | Timelines for activity |
1. | Receipt of Complaint | Day of complaint (C Day). |
2. | Additional information sought from the investor, if any, and provisionally forwarded to stock broker. | C + 7 Working days. |
3. | Registration of the complaint and forwarding to the stock broker. | C+8 Working Days i.e. T day. |
4. | Amicable Resolution. | T+15 Working Days. |
5. | Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution. | T+16 Working Days. |
6. | Complete resolution process post GRC. | T + 30 Working Days. |
7. | In case where the GRC Member requires additional information, GRC order shall be completed within. | T + 45 Working Days. |
8. | Implementation of GRC Order. | On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order. |
9. | In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration |
Within 7 days from receipt of order |
10. |
If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs | Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor. |
11. |
Stock Broker shall file for arbitration | Within 6 months from the date of GRC recommendation |
12. |
In case the stock broker does not file for arbitration within 6 months | The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any. |
Handling of Investor's claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)
Following information is available on Stock Exchange website for information of investors:
Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI) @ https://scores.gov.in/scores/Welcome.html
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.
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://www.cdslindia.com/DP/dplist.aspx].
Sr. no. | Brief about the Activity / Service | Expected Timelines for processing by the DP after receipt of proper documents |
1. | Dematerialization of securities | 7 days |
2. | Rematerialization of securities | 7 days |
3. | Mutual Fund Conversion / Destatementization | 5 days |
Sr. no. | Brief about the Activity / Service | Expected Timelines for processing by the DP after receipt of proper documents |
4. | Re-conversion / Restatementisation of Mutual fund units | 7 days |
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 up to 4 p.m. and DIS in electronic form up to 6 p.m. on T+1 day |
Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include
Sr. no. | Type of Activity /Service | Brief about the Activity / Service |
1. | Value Added Services | Depositories also provide value added services such as
etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc. |
2. | Consolidated Account statement (CAS) | CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions). |
3. | Digitalization of services provided by the depositories | Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: |
Sr. no. | Type of Activity /Service | Brief about the Activity / Service |
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1. | Investor Complaint/ Grievances | Investor can lodge complaint/ grievance against the Depository/DP in the following ways:
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2. | Investor Grievance Redressal Committee of Depository | If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC willendeavor to resolve the complaint/ grievance by |
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| hearing the parties and examining the necessary information and documents. |
3. | Arbitration proceedings | The Investor may also avail the arbitration 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). |
Sl No. | Type of special circumstances | Timelines for the Activity/ Service |
1. |
| Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email. |
Dos and Don’ts for Investors
For Do’s and Don’ts please refer to the link [link to be provided by the DPs]10
For rights, please refer to the link [link to be provided by the DPs]11
For responsibilities, please refer to the link [link to be provided by the DPs]1
This document contains the contents pertaining to the qualifier “[https://www.cdslindia.com/Investors/InvestorCharter.html]” in the Investor Charter main document. The same is to be made available by the Depositories on their websites and web-links to the same is to be provided for incorporation in the Investor Charter.
For reasons of convenience, the contents in main Charter and this document have been mapped with the same superscript.
Point 1: Value Added Services
Point 3: Digitization of services provided by the depositories
Point 2 (Investor Grievance Redressal Committee of Depository)9: If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to 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.
Point 3(Arbitration proceedings)10:
The Investor may also avail the arbitration 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).
Complaint Resolution process at Depositories11
Complaint Resolution process at Depositories
Dos and Don’ts for Investor12
Sl No. | Guidance |
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 Stockbroker, 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 signor 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 No. | Guidance |
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. |
Rights of investors13
Responsibilities of Investors14
