SEBI Revises Investor Charter for Share Transfer Agents to Improve Investor Services [Read Circular]

The Securities and Exchange Board of India (SEBI) issued a circular dated May 14, 2025, updating the Investor Charter for Registrars to an Issue and Share Transfer Agents (RTAs). The revised charter replaces the previous one issued in November 2021 and updates Clause 29 of the Master Circular for RTAs dated May 7, 2024. The changes have been developed in consultation with the RTAs’ Industry Standards Forum (ISF).

The update comes in response to:

• Advancements in the securities market ecosystem, including the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0.
• There is a need to streamline investor interactions with RTAs and reinforce accountability and efficiency in service delivery.
• Inputs and consultations with the RTAs’ Industry Standards Forum (ISF).

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Key Features of the Revised Investor Charter (Annexure A)

Services Offered by RTAs

• KYC updates (address, PAN, bank details, etc.)
• Dematerialization/rematerialization of securities
• Processing of name changes, nominations, and transmission of securities
• Revalidation of dividend/interest payments
• Corporate actions like bonus issues, mergers, and buybacks

Standard Timelines

• Transmission of securities: 21 days
• Issue of duplicate certificates: 30 days
• KYC updates: 15–30 days depending on the request
• Grievance redressal: 21 days

These timelines ensure predictability and accountability in investor services.

Investor Rights

• Right to timely and accurate information
• Right to fair and non-discriminatory treatment
• Right to participate in AGMs and e-voting
• Right to grievance escalation via SEBI portals (SCORES, SMARTODR)

Do’s and Don’ts for Investors

• Do: Keep KYC and bank details updated; nominate beneficiaries; respond to dividend/allotment communications.
• Don’t: Share sensitive personal or security details with unverified persons; leave folios without PAN or nomination.

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Grievance Redressal Mechanism

1. Primary level: Contact RTA via email or post.
2. If unresolved: Escalate via SCORES 2.0.
3. Further escalation: Use SMARTODR for online conciliation or arbitration.

This tiered approach aims to resolve complaints promptly and fairly.

Complaint Disclosure Requirements (Annexure B)

To boost transparency, RTAs must now:

• Disclose monthly complaint data on their websites by the 7th of each month.
• Report details such as:
  • Number of complaints received and resolved
  • Complaints pending for less than or more than 3 months
  • Average resolution time
• Submit annual complaint trends to SEBI

This enables stakeholders to monitor the performance of RTAs and ensures accountability.

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This circular is issued under the powers conferred by Section 11(1) of the SEBI Act, 1992, and Regulation 15D of the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993. It comes into immediate effect and overrides previous circulars on the subject.

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