Sebi asks RTAs to publish investor charter, disclose complaint data on websites

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Updated: November 26, 2021 6:54 PM

The new guidelines will come into effect from January 1, 2022, the Securities and Exchange Board of India (Sebi) said in four separate circulars.

This came after the Securities and Exchange Board of India (Sebi) came out with investor charter last week.This came after the Securities and Exchange Board of India (Sebi) came out with investor charter last week.

Markets regulator Sebi on Friday directed registrar and share transfer agents (RTAs) and merchant bankers to disclose investor charter as well as data pertaining to complaints they received on their websites.
The regulator has listed various categories for which investor charter needs to be disclosed by merchant bankers.

The new guidelines will come into effect from January 1, 2022, the Securities and Exchange Board of India (Sebi) said in four separate circulars.
With a view to providing investors relevant information about the primary market issuances in the debt market, municipal debt securities as well as issuance by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), an investor charter has been prepared by Sebi in consultation with merchant bankers.

Also, the regulator has developed an investor charter for RTAs detailing the services provided to investors, rights of investors, various activities of RTAs with timelines, dos and don’ts for investors and grievance redressal mechanism.

This charter is a brief document containing different services to investors at one single place for ease of reference.
Sebi has asked merchant bankers to disclose on their websites, the investor charter for public offer of units by REITs, as well as InvITs and private placements of municipal debt securities.

The other categories for which investor charter needs to be disclosed by merchant bankers are — public issue of debt securities, public issue of non-convertible redeemable preference shares; and private placement of debt securities and non-convertible redeemable preference shares.
Also, Sebi has asked RTAs to take necessary steps to bring the investor charter to the notice of existing and new shareholders by way of disseminating the charter on their websites as well as displaying the charter at prominent places in offices.

The Registrar Association of India will also disseminate the investor charter on its website.
In addition, Sebi has asked RTAs and merchant bankers to disclose on their respective websites, the data on complaints received against them and redressal thereof in a move to bring transparency in the investor grievance redressal mechanism.

These need to be disclosed latest by 7th of succeeding month, Sebi said.

In addition, the regulator has also prescribed a format for disclosing data of complaints on their websites.
Under the disclosure, RTAs and merchant bankers will have to disclose about complaints received during the month, those carried forward from previous month, complaints pending for more than three months, complaints resolved and average time taken in resolution of a complaint among others.
On Tuesday, Sebi asked merchant bankers to disclose on their websites, the investor charter for initial public offer (IPO) as well as further public offer (FPO), rights issue, qualified institutions placement, preferential issue, buyback of securities, delisting of equity shares and substantial acquisitions of shares and takeovers.

Besides, it asked stock exchanges, depositories and clearing corporations to disclose on their websites, the data on complaints received against them and redressal thereof.

This came after the Securities and Exchange Board of India (Sebi) came out with investor charter last week.

This charter includes the rights and responsibilities of investors, and dos and don’ts of investing in the securities market.
The charter is aimed at protecting the “interests of investors by enabling them to understand the risks involved and invest in a fair, transparent, secure market, and to get services in a timely and efficient manner”.

The rights include getting fair and equitable treatment, expecting redressal of investor grievances filed in SCORES in a time-bound manner.
Also, the market regulator has created a separate investor charter for market infrastructure institutions– stock exchanges, clearing corporations and depositories.

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