The Securities and Exchange Board of India (SEBI) has released investor charters for (InvITs) and (REITs). This revision aligns the charters with the changes introduced through online dispute resolution and SCORES 2.0, the SEBI’s online grievance redressal facilitation platform.
The changes aim to enhance consumer protection and inclusion. The Industry Standards Forum and Hybrid Securities Advisory Committee were also consulted in updating the charter.
According to the notification, investment advisers, research analysts, the Bharat InvITs Association (BIA) and the Indian REITs Association (IRA) must notify their clients of the changes in the charter through their websites, mobile applications and by displaying the changes prominently at their office premises.
Investment advisers and research analysts are also required to give a copy of the updated investor charter to clients as part of the onboarding process. The BIA and RIA, on the other hand, have been directed to revise their charters in line with the new changes and circulars introduced in respective regulations.
The investment advisers, research analysts, InvITs and REITs are also required to disclose complaints against them or matters dealt by them on their websites and mobile applications to ensure transparency.
The investor charters are SEBI-issued documents aiming to promote transparency, increase awareness and build trust and confidence among investors. They outline the rights and responsibilities of investors, the grievance redressal system in place and the dos and don’ts of investing in the securities market.
The charters are intended to serve as clear and concise references and provide broad guidelines for market infrastructure institutions, stock exchange depositories and market intermediaries such as stockbrokers to develop their own investor charters.
