SEBI Issues Revised Investor Charter for Investment Advisers
SEBI revised the Investor Charter for Investment Advisers to enhance transparency and strengthen investor protection
The Securities and Exchange Board of India (SEBI) issued a Circular dated June 2, 2025, announcing the release of an updated Investor Charter for Investment Advisers (IAs). The revised charter aims to improve financial consumer protection, streamline grievance redressal, and align with recent digital reforms such as SCORES 2.0 and the Online Dispute Resolution (ODR) platform.
Key Highlights of the SEBI Circular
1. Updated Investor Charter
SEBI has revised the investor charter (originally issued in 2021) to:
- Align with recent changes in the market (like Online Dispute Resolution (ODR) and SCORES 2.0).
- Enhance financial literacy, inclusion, and transparency.
- Make advisory services safer and more investor-friendly.
2. Mandatory Disclosures by Investment Advisers
Investment Advisers must now:
- Display the Investor Charter on their websites, mobile apps, and office premises.
- Share it with the client onboarding process via email or a printed copy.
- Publicly disclose complaint data monthly (format provided in Annexure B, page 8), including:
- Complaints received, resolved, and pending (especially >3 months).
- Average time taken to resolve complaints.
3. Grievance Redressal Framework
Investors can file complaints via:
- Directly to the IA (must be resolved within 21 days).
- SCORES 2.0 platform (https://scores.sebi.gov.in), with:
- First-level review by IAASB.
- Second-level review by SEBI.
- SMARTODR platform (for unresolved disputes via online conciliation/arbitration).
- SEBI’s physical office if needed.
4. Investor Rights
Investors are now clearly entitled to:
- Privacy, fair treatment, transparency, full disclosure, grievance redressal, product suitability, and opt-out rights.
- Special protection for vulnerable consumers (e.g., elderly, differently abled).
5. Investor Responsibilities (Do’s & Don’ts)
Do's:
- Check IA's SEBI registration.
- Pay only advisory fees via legal channels.
- Ask for risk profiling and detailed terms.
Don'ts:
- Don’t share passwords or pay for investments.
- Avoid IAs who promise assured returns or use pressure tactics.
This circular comes into immediate effect from June 2, 2025.
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