The Securities and Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, read with Regulation 15(15) of the SEBI (Investment Advisers) Regulations, 2013, vide Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/80,[1] dated June 02, 2025, has issued new directives concerning the Investor Charter for Investment Advisers (“IAs”).
This update is part of SEBI’s ongoing efforts to improve financial consumer protection, increase financial inclusion, and promote financial literacy within the securities market. The updated Investor Charter, developed in consultation with the Industry Standards Forum (“ISF”) for IAs, is designed to enhance transparency, accountability, and grievance redressal mechanisms for investors engaging with IAs. (“Circular”)
Key Highlights:
- Investor Charter Issuance and Purpose: SEBI, in its Circular dated December 13, 2021, and Clause 8 of the Master Circular for IAs dated May 21, 2024, had issued an earlier version of the Investor Charter for IAs. In light of recent developments in the securities market and to further improve financial consumer protection, SEBI has decided to revise and update this charter.
- Objective of the Update: The revision aims to strengthen financial inclusion, financial literacy, and investor protection. It also takes into account the introduction of new platforms such as the Online Dispute Resolution (ODR) platform and SCORES 2.0, which are expected to significantly improve the efficiency and transparency of resolving investor grievances.
- Consultation and New Investor Charter: The updated Investor Charter has been developed following consultations with the ISF for IAs. The revised Investor Charter, incorporating these changes, is provided in Annexure A of the Circular.
- Implementation and Awareness: SEBI has directed BSE Limited (currently recognized as IAASB) to advise all IAs to actively bring the updated Investor Charter to the attention of their clients, both existing and new.
- Grievance Redressal Mechanism: To ensure transparency in the Investor Grievance Redressal Mechanism, all IAs are required to disclose data on complaints received, issues handled, and their resolution status on their respective websites and mobile applications (if applicable). This disclosure must be made by the 7th of each succeeding month, following the format provided in Annexure B of the Circular.
- Rescission and Amendments: With the issuance of this Circular, SEBI Circular No. SEBI/HO/IMD/IMD-II CIS/P/CIR/2021/0686 dated December 13, 2021, stands rescinded, and Clause 8 of the Master Circular for IAs dated May 21, 2024, has been amended as per the guidelines set out in this Circular.
[1] https://www.sebi.gov.in/legal/circulars/jun-2025/investor-charter-for-investment-advisers_94354.html