Sebi Seeks Input on Investor Charter for RTAs, RAs

New Delhi, Apr 11 (PTI) Markets regulator Sebi on Friday invited public comments on a draft paper to review the investor charter for RTAs, investment advisers, and research analysts to enhance financial consumer protection and literacy.

The investor charter should provide details about the activities of registrars to an issue and share transfer agents (RTAs), research analysts (RAs) and investment advisers (IAs), Sebi said in three draft separate circulars.

Additionally, these investor charters should also provide details about the activities of RTAs, RAs and IAs as well as Dos and Don'ts for investors.

The move comes in the wake of advancements in grievance redressal mechanisms, such as the introduction of SCORES 2.0 and the Online Dispute Resolution (ODR) platform, aimed at providing faster and more efficient investor services.

The investor charter for RTAs outlines services like KYC updates, transmission of shares, dividend processing, and corporate actions like ESOPs and bonus issues, along with expected timelines ranging from 15 to 30 days.

In order to ensure transparency, all the registered RTAs will continue to disclose on their respective websites, the data on complaints received against them or against issues dealt by them and redressal thereof, latest by the 7th of every month.

RAs have to maintain high standards of disclosure and offer unbiased recommendations, disclosing the financial interests in recommended securities.

The charter prescribes that RAs must inform clients about material conflicts of interest and the extent of the use of artificial intelligence tools in providing research services.

The proposal also seeks clear guidance and adequate caution notice to clients when providing recommendations for dealing with complex and high-risk financial products/services.

Similarly, for IAs, the charter emphasises the need for a transparent onboarding of clients process and unbiased risk profiling.


The IAs are expected to provide full disclosure about their business, affiliations, and compensation in the agreement and not to discriminate in terms of services provided, among clients opting for the same/similar products/services offered by investment adviser.

The charter also empowers investors with the right to exit services, seek fair grievance redressal, and be informed about AI usage in advisory processes.

Further, the Securities and Exchange Board of India (Sebi) has directed all registered RTAs to disseminate the Investor Charter through websites, and emails and display it prominently in offices.

Sebi has sought public comments till May 2 on the proposals.