Executive Summary:
This circular from the Securities and Exchange Board of India (SEBI) mandates that all registered Custodians and Designated Depository Participants (DDPs) publish an Investor Charter on their websites to increase investor awareness. It also requires Custodians and DDPs to disclose monthly data on complaints received and resolved on their websites by the 7th of the following month. These provisions are effective from January 1, 2022.
Key Points / Main Content:
Investor Charter:
* Registered Custodians and DDPs must prominently display the Investor Charter on their websites.
* The Investor Charter details services provided to investors, associated timelines, and general guidance.
Complaint Disclosure:
* Custodians and DDPs must disclose monthly data on complaints received and resolved on their websites.
* The disclosure must follow the format provided in Annexure B of the circular.
* The monthly data must be published by the 7th of the succeeding month.
Effective Date:
* The provisions of this circular are effective from January 1, 2022.
Impact Analysis:
Custodians and Designated Depository Participants (DDPs)
Impact: Custodians and DDPs must now adhere to new requirements for disclosing information to investors, including publishing an investor charter and monthly data on complaints.
Action Required:
* Display the Investor Charter on their websites.
* Disclose monthly data on complaints received and resolved on their websites by the 7th of the following month, adhering to the specified format.
Investors:
Impact: Investors will benefit from increased transparency regarding the services offered by Custodians and DDPs, as well as the complaint redressal mechanisms available to them.
Action Required: Review the Investor Charters of Custodians and DDPs to understand their rights and the expected timelines for various services.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body for securities and commodity market in India, responsible for protecting investors and regulating the securities market.
Custodian: Refers to registered custodians who provide custodial services to investors.
Designated Depository Participants (DDPs): Entities providing depository services to Foreign Portfolio Investors (FPIs).
Investor Charter: A document outlining the services, timelines, and general guidance for investors dealing with Custodians and DDPs.
Investor Grievance Redressal Mechanism: A system for addressing and resolving complaints from investors.
Securities and Exchange Board of India Act, 1992: The legislation that establishes the powers and functions of SEBI.
SCORES: SEBI's web-based centralized investor grievance redressal mechanism.
Foreign Portfolio Investors (FPIs): Investors (or investments) investing in a country's financial assets without directly managing them.
भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/FPIC/P/CIR/2021/691 December 17, 2021
To,
All Custodians
All Designated Depository Participants (DDPs)
Dear Sir / Madam,
Subject: Publishing of Investor Charter and Disclosure of Complaints by
Custodians and DDPs on their websites
1. In order to facilitate awareness among investors about the details of activities carried
and services provided by Custodians and Designated Depository Participants
(DDPs), SEBI after due consultation has developed Investor Charters for Custodians
and DDPs which inter-alia deals with services provided to investors with timelines
and general guidance for Investors.
2. In this regard, all the registered Custodians and DDPs shall take necessary steps to
bring the Investor Charter, as provided in “Annexure-A” to this circular, to the notice
of their clients and ensure that the Investor Charter is prominently displayed on their
respective website for ease of accessibility of investors.
3. Additionally, in order to bring about transparency in the Investor Grievance Redressal
Mechanism, it has been decided that all Custodians and DDPs shall disclose on their
respective websites, the monthly data on complaints received and redressal thereof,
latest by 7th of succeeding month, as per the format provided in “Annexure- B” to
this circular.
4. The provisions of this circular shall come into effect from January 01, 2022.
Page 1 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
5. The Circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, to protect the interest of investors
in securities and to promote the development of, and to regulate the securities
market.
6. This Circular is available at www.sebi.gov.in under the link “LegalCirculars”.
Yours faithfully,
Chandrakanta Mitra
Deputy General Manager
Email-id: cmitra@sebi.gov.in
Page 2 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
ANNEXURE- A
INVESTOR CHARTER - CUSTODIAN
VISION STATEMENT:
“To make India an investor friendly country through efficient Regulations”.
MISSION STATEMENT:
“To serve all investors by promoting the highest standards of ethics, professional excellence and investor
protection”.
TIMELINES PERTAINING TO VARIOUS SERVICES PROVIDED BY CUSTODIAN
S.No. Type of Service Expected Timelines*
1 Account Opening
(a) Opening Custody Accounts Within 15 working days
2 Trade Processing
(a) Pre-matching, Confirmations, Margin /
Within the Market timelines
Funding verification
within 24 hours of receipt of Securities/
(b) Settlements
Cash
3 Safekeeping of Assets / Reports to Client within 24 hours of receipt of Securities
4 Breach of Foreign Ownership Limit within 24 hours
5 Asset Servicing
(a) Corporate action notification Within 48 hours
(b) Processing of client's instructions for
within Market timelines
the event
(c) Settlements Within 48 hours
(d) Proxy Voting / E-Voting / Postal Ballot within Market timelines
6 Monthly Portfolio Report to client with list
Within 7 working days
of Assets
7 Client Queries Acknowledgment or Response within
48 hours
8 Grievance Redressal Acknowledgment within 48 hours and
redress within 30 days
* above timelines will apply to cases where documents/information is complete in all respects
Page 3 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
General Guidance for Investors:
S.No. Guidance
1 Provide Complete, Accurate and Latest information for Account Opening.
2 Investors are solely responsible for any investment activity undertaken on the market.
Ensure all investments and investment related activities are in compliance with applicable
3
rules and regulations
Investors have Right of Fair and Equitable Treatment and Confidentiality of Information as
4
per SEBI (Custodian) Regulations, 1996
Investors have Right to expect Redressal of Grievances in a timebound manner and ensure
5
to collect contact details of key personnel for Escalation and Resolution of grievances
Adhere to all the rules, regulations, investment limits / conditions prescribed by the
6
Regulators and Government of India.
Grievance Redressal Mechanism
Approach the Custodian at the designated Investor Grievance e-mail ID with complete details of
complaints for redressal of investor grievances in a time bound manner.
The complaint not redressed at Custodian level, may be lodged with SEBI on SCORES (a web
based centralized investor grievance redressal mechanism at SEBI) @
https://www.scores.gov.in/scores/Welcome.html
Page 4 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
INVESTOR CHARTER - DESIGNATED DEPOSITORY PARTICIPANTS
VISION STATEMENT:
“To make India an investor friendly country through efficient Regulations”.
MISSION STATEMENT:
“To serve all investors by promoting the highest standards of ethics, professional excellence and investor
protection”.
TIMELINES PERTAINING TO VARIOUS SERVICES PROVIDED BY DDP
S.no. Type of Service Expected Timelines *
FPI registration
(a) Fresh Registration Within 30 days
1
(b) Renewal of FPI Registration Within 15 days
Within 10 working days of receipt of NOC from
(c) Surrender of FPI Registration
SEBI
Within 30 days of receipt of approval from
2 Change in DDP cum Custodian
incoming DDP
Off-Market (Free of Payment) transfers
3 permitted as per SEBI Operational Within 15 days
Guidelines for FPIs, DDPs and EFIs
Jurisdiction FPI FPI
Category – I Category – II
High Risk Registered Annually
under Reg.
5(a)(i) –
During
continuance of
registration i.e.
every 3 years.
4 KYC Review / Update
Others -
Annually
Non-High During Regulated
Risk continuance of entities during
registration i.e. continuance of
every 3 years. registration i.e.
every 3 years.
Others-Annually.
* above timelines will apply to cases where application is complete in all respects
Page 5 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
General Guidance for Investors:
S.No. Guidance
1 Provide Complete, Accurate and Latest information for FPI registration.
Adhere to all the rules, regulations, investment limits / conditions prescribed by the
2
Regulators and Government of India.
Sell or write-off securities holdings prior to expiry of the FPI registration in case the FPI
3
wish to surrender its registration.
4 Inform Forthwith any changes in information or particulars pertaining the FPI registration.
Investors have Right of Fair and Equitable Treatment and Confidentiality of Information as
5
per SEBI (FPI) Regulations, 2019 and SEBI Operational Guidelines for FPIs, DDPs and EFIs .
Investors have Right to expect Redressal of Grievances in a timebound manner and ensure
6
to collect contact details of key personnel for Escalation and Resolution of grievances
Grievance Redressal Mechanism
Approach the DDP at the designated Investor Grievance e-mail ID with complete details of
complaints for redressal of investor grievances in a time bound manner.
The complaint not redressed at DDP level, may be lodged with SEBI on SCORES (a web based
centralized investor grievance redressal mechanism at SEBI) @
https://www.scores.gov.in/scores/Welcome.html
Page 6 of 7भारतीयप्रततभूततऔरतितिमयबोर्ड
Securities and Exchange Board of India
ANNEXURE- B
Format of Complaints against Custodians and DDPs to be displayed on their websites
A. Data for the Month ending -
S.No Received Pending Received Resolved Total Complaints Average
from at the during during the Pending Pending > 1 Resolution
end of the month* at the end month time^
the last month of month (in days)
month **
1 Directly
from
Investors
2 SEBI
(SCORES)
3 Stock
Exchanges
(if relevant)
4 Other
Sources
(if any)
5 Grand
Total
B. Trend of Monthly disposal of complaints for the Financial Year-
SN Month Carried forward Received Resolved Pending at
from previous during the during the the end of the
month month month * month **
1 April 2021
2 May 2021
……
12 March 2022
Grand Total
* Inclusive of complaints of previous months resolved in the current month.
** Inclusive of complaints pending as on the last day of the month.
^ Average Resolution time is the sum total of time taken to resolve each complaint in days, in the current
month divided by total number of complaints resolved in the current month.
C. Trend of Annual (FY) disposal of complaints (For 3 years on rolling basis)-
SNo Year Carried forward Received Resolved Pending at the
from previous year during the year during the year end of the year
1 2019-20
2 2020-21
3 2021-22
Grand Total
Page 7 of 7