SEBI's New Push: Revamping Investor Charter for Brokers

SEBI proposes revising the investor charter for stock brokers to enhance consumer protection, financial inclusion, and literacy. The updated charter will include broker services, investor DOs and DON'Ts, and a grievance redressal mechanism. Feedback is invited until February 17.

In an initiative to bolster financial consumer protection, markets regulator SEBI proposed on Wednesday a revision of the investor charter for stock brokers. This move aims to simultaneously promote financial inclusion and literacy across the board.

The revision comes on the heels of recent advancements in the securities sector, such as the introduction of the Online Dispute Resolution platform and SCORES 2.0, a central web-based grievance redressal system. SEBI's consultation paper outlines a modified charter and invites public comments until February 17.

The revised charter will clearly define the vision, mission, services offered, and responsibilities of brokers. It also addresses grievance mechanisms and procedures for handling investor claims during broker defaults. Additionally, brokers are encouraged to make the charter accessible to clients online, in offices, and as part of account opening materials.

(With inputs from agencies.)