HomeInvestor Charter – Stock Broker

Investor Charter – Stock Broker

VISION

To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.

MISSION

  • To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
  • To establish and maintain a relationship of trust and ethics with the investors.
  • To observe highest standard of compliances and transparency.
  • To always keep ‘protection of investors’ interest’ as goal while providing service.
  • To ensure confidentiality of information shared by investors unless such information is required to be provided in furtherance of discharging legal obligations or investors have provided specific consent to share such information.

Services provided to Investors

  • Execution of trades on behalf of investors.
  • Issuance of Contract Notes.
  • Issuance of intimations regarding margin due payments.
  • Facilitate execution of early pay-in obligation instructions.
  • Periodic Settlement of client’s funds.
  • Issuance of retention statement of funds at the time of settlement.
  • Risk management systems to mitigate operational and market risk.
  • Facilitate client profile changes in the system as instructed by the client.
  • Information sharing with the client w.r.t. relevant Market Infrastructure Institutions (MII) circulars.
  • Provide a copy of Rights & Obligations document to the client.
  • Communicating Most Important terms and Conditions (MITC) to the client.
  • Redressal of Investor’s grievances.

Rights of Investors

  • Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself (including website providing mandatory information).
  • Receive complete information about the risks, obligations, and costs of any investment before investing.
  • Receive a copy of all completed account forms and rights & obligation document.
  • Receive a copy of ‘Most Important Terms & Conditions’ (MITC).
  • Receive account statements that are accurate and understandable.
  • Understand the terms and conditions of transactions you undertake.
  • Access your funds in a prescribed manner and receive information about any restrictions or limitations on access.
  • Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties in form of tariff sheet.
  • Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.
  • Close your zero balance accounts online with minimal documentation.
  • Get the copies of all policies (including Most Important Terms and Conditions) of the broker related to dealings of your account.
  • Not be discriminated against in terms of services offered to equivalent clients.
  • Get only those advertisement materials from the broker which adhere to Code of Advertisement norms in place.
  • In case of broker defaults, be compensated from the Exchange Investor Protection Fund as per the norms in place.
  • Trade in derivatives after submission of relevant financial documents to the broker subject to brokers’ adequate due diligence.
  • Get warnings on the trading systems while placing orders in securities where surveillance measures are in place.
  • Get access to products and services in a suitable manner even if differently abled.
  • Get access to educational materials of the MIIs and brokers.
  • Get access to all the exchanges of a particular segment you wish to deal with unless opted out specifically as per Broker norms.
  • Deal with one or more stockbrokers of your choice without any compulsion of minimum business.
  • Have access to the escalation matrix for communication with the broker.
  • Not be bound by any clause prescribed by the Brokers which are contravening the Regulatory provisions.

Various activities of Stock Brokers with timelines

S. No.ActivitiesExpected Timelines
1KYC entered into KRA System and CKYCR3 working days of account opening
2Client OnboardingImmediate, but not later than one week
3Order executionImmediate on receipt of order, but not later than the same day
4Allocation of Unique Client CodeBefore trading
5Copy of duly completed Client Registration Documents to clients7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6Issuance of contract notes24 hours of execution of trades
7Collection of upfront margin from clientBefore initiation of trade
8Issuance of intimations regarding other margin due paymentsAt the end of the T day
9Settlement of client fundsFirst Friday/Saturday of the month / quarter as per Exchange pre-announced schedule
10‘Statement of Accounts’ for Funds, Securities and CommoditiesWeekly basis (Within four trading days of following week)
11Issuance of retention statement of funds/commodities5 days from the date of settlement
12Issuance of Annual Global Statement30 days from the end of the financial year
13Investor grievances redressal21 calendar days from the receipt of the complaint

DOs and DON’Ts for Investors

DosDON’Ts
1. Read all documents and conditions being agreed before signing the account opening form.1. Do not deal with unregistered stock broker.
2. Receive a copy of KYC, copy of account opening documents and Unique Client Code.2. Do not forget to strike off blanks in your account opening and KYC.
3. Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.3. Do not submit an incomplete account opening and KYC form.
4. Receive all information about brokerage, fees and other charges levied.4. Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
5. Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.5. Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
6. If executed, receive a copy of Power of Attorney / 'Demat Debit and Pledge Instruction' (DDPI). However, Power of Attorney / 'Demat Debit and Pledge Instruction' (DDPI) is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney / 'Demat Debit and Pledge Instruction' (DDPI), carefully examine the scope and implications of powers being granted.6. Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
7. Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.7. Do not opt for digital contracts, if not familiar with computers.
8. Receive funds and securities / commodities on time, as prescribed by SEBI or exchange from time to time.8. Do not share trading password.
9. Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.9. Do not fall prey to fixed / guaranteed returns schemes.
10. Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (Monthly or Quarterly).10. Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
11. In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.11. Do not follow herd mentality for investments. Seek expert and professional advice for your investments
12. Retain documents for trading activity as it helps in resolving disputes, if they arise. 

Additionally, Investors may refer to Dos and Don’ts issued by MIIs on their respective websites from time to time.

Grievance Redressal Mechanism

The process of investor grievance redressal is as follows:

1Investor complaint/Grievances

Investor can lodge complaint/grievance against stock broker in the following ways:

Mode of filing the complaint with stock broker

Investor can approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 21 days of the receipt of the grievance

Mode of filing the complaint with stock exchanges

i.    SCORES 2.0 (a web based centralized grievance redressal system of SEBI) (https://scores.sebi.gov.in)

Two level review for complaint/grievance against stock broker ::
•    First review done by Designated body/Exchange
•    Second review done by SEBI

ii.    Emails to designated email IDs of Exchange

2Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration.If the Investor is not satisfied with the resolution provided by the Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through online conciliation or arbitration.
3Steps to be followed in ODR for Review, Conciliation and Arbitration.1.    Investor to approach Market Participant for redressal of complaint
2.    If investor is not satisfied with response of Market Participant, he/she has either of the following 2 options:
i)    May escalate the complaint on SEBI SCORES portal.
ii)    May also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.
3.    Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavor to resolve the matter between the Market Participant and investor within 21 days.
4.    If the matter could not be amicably resolved, then the matter shall be referred for conciliation.
5.    During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator with consent of the parties to dispute.
6.    If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.
7.    The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days with consent of the parties to dispute
 

Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)

Default of TM/CM

Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:

  • Circular is issued to inform about declaration of Stock Broker as Defaulter.
  • Information of defaulter stock broker is disseminated on Stock Exchange website.
  • Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period.
  • Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.

Following information is available on Stock Exchange website for information of investors:

  • Norms for eligibility of claims for compensation from IPF.
  • Claim form for lodging claim against defaulter stock broker.
  • FAQ on processing of investors’ claims against Defaulter stock broker.
  • Provision to check online status of client’s claim, Standard Operating Procedure (SOP) for handling of Claims of Investors in the Cases of Default by Brokers.
  • Claim processing policy against Defaulter/Expelled members.
  • List of Defaulter/Expelled members and public notice issued.

Annexure - B

Investor Complaints Data for Master Capital Services Limited (Stock Brokers)
Data for Month ending –June-2025
S. NoReceived fromCarried forward from previous monthReceived during the monthTotal PendingResolved*Pending at the end of the month**Average Resolution time^ (in days)
      Pending for less than 3 monthsPending for more than 3 months 
12

3

4

5

6

7

8

1Directly from Investors27981011.5
2SEBI (SCORES)0111001
3Stock Exchanges000000 
4Other Sources (if any)000000 
 Grand Total

2

8

10

9

1

0

 
         
Trend of monthly disposal of complaints
S. NoMonthCarried forward from previous monthReceivedResolved*Pending**

1

2

3

4

5

6

1April-2021715193
2May-20213271515
3June-20211514263
4July-2021313151
5August-2021122203
6September -2021318147
7October-202177122
8November-2021211103
9December-2021310112
10January-20222864
11February-202241095
12March-2022510123
13April-20223342
14May-202221093
15June-2022326227
16July-2022716203
17August-2022318165
18September-2022519204
19October-2022414144
20November-2022416128
21December-2022824293
22January-2023311131
23February-2023113104
24March-2023414180
25April-20230981
26May-20231560
27June-202301183
28July-2023315108
29August-20238190
30September-2023016124
31October-2023418184
32November-2023

4

7

10

1

33December 2023

1

12

 8

5

34January- 2024

5

11

15

1

35February-2024

1

11

12

0

36March-2024

0

16

15

1

37April-2024

1

31

29

3

38May-2024

3

41

37

7

39June-2024

6

25

28

3

40July-2024

3

33

32

4

41August-2024

4

42

39

7

42September-2024

7

23

25

5

43October-2024

5

13

14

4

44November-2024

4

15

12

7

45December-2024

7

13

18

2

46January-2025

2

13

13

2

47February-2025

2

13

12

3

48March-2025

3

11

11

3

49April-2025

3

16

19

3

50May-2025

3

9

10

2

51June-2025

2

8

9

1

 Grand Total 

787

793

 

*Should include complaints of previous months resolved in the current month, if any. **Should include total complaints pending as on the last day of the month, if any. ^Average resolution time is the sum total of time taken to resolve each complaint in the current month divided by total number of complaints resolved in the current month

Trend of annual disposal of complaints
S. NoYearCarried forward from previous yearReceived during the yearResolved during the yearPending at the end of the year
12017-1821361299
22018-19992992
32019-202857017
42020-21172462567
52021-2271651693
62022-2331841874
72023-2401321310
82024-25

1

273

271

3

92025-26

3

33

35

1

 Grand Total 

1346

1347