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 24(9) of the SEBI (Research Analysts) Regulations, 2014, vide Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/81,[1] dated June 02, 2025, has issued new directives concerning the Investor Charter for Research Analysts (“RAs”).
This is part of SEBI’s ongoing efforts to enhance consumer protection, financial inclusion, and literacy within the securities market. The updated Investor Charter, developed in consultation with the Industry Standards Forum (“ISF”) for RAs, is intended to improve the transparency, accountability, and grievance redressal mechanisms for investors engaging with RAs. (“Circular”)
Key Highlights:
- Investor Charter Issuance and Purpose: SEBI, in its Circular dated December 13, 2021, and Clause 5 of the Master Circular for Research Analysts dated May 21, 2024, had issued an earlier version of the Investor Charter for Research Analysts. In light of recent developments in the securities market and to improve financial consumer protection, SEBI has decided to revise and update this charter.
- Objective of the Update: The revision aims to further enhance financial inclusion, financial literacy, and investor protection. It also takes into account the introduction of new platforms like the Online Dispute Resolution (ODR) and SCORES 2.0, which are expected to play a significant role in resolving investor grievances in a transparent and efficient manner.
- Consultation and New Investor Charter: The updated Investor Charter has been developed following consultations with the ISF for RAs. The revised Investor Charter, which incorporates these changes, is provided in Annexure A of the Circular.
- Implementation and Awareness: SEBI has directed BSE Limited (currently recognized as RAASB) to advise all Research Analysts to actively bring the updated Investor Charter to the attention of their clients, both existing and new.
- Grievance Redressal Mechanism: To promote transparency in the Investor Grievance Redressal Mechanism, all Research Analysts are required to disclose data on complaints received, issues dealt with, 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, in the format provided in Annexure B of the circular.
[1]https://www.sebi.gov.in/legal/circulars/jun-2025/investor-charter-for-research-analysts_94355.html