Investor Rights & Obligations

By | November 1, 2015

Investor Rights & Obligations

Investor’s Rights

Investor’s Obligations

Right to

  • Get Unique Client Code (UCC) allotted.
  • Get a copy of KYC and other documents executed.
  • Get order of trading of shares executed in his/her Unique Client Code only.
  • Get order of trading of shares placed as per terms and conditions agreed to between broker and investor.
  • Get best price.
  • Get contract note for trades executed.
  • Get the details of charges levied.
  • Receive funds and securities on time.
  • Get shares through auction where delivery is not received.
  • Receive statement of accounts from trading member.
  • Ask for settlement of accounts.
Obligation to

  • Possess a valid contract or purchase/sale note.
  • Deliver securities with valid documents and proper signatures.
  • Execute Know Your Client (KYC) documents and provide supporting documents.
  • Understand the voluntary conditions being agreed with the member.
  • Understand the rights given to the Members.
  • Read Risk Disclosure Document.
  • Understand the product and operational framework and deadlines.
  • Pay margins.
  • Pay funds and securities for settlement on time.
  • Verify details of trades.
  • Verify bank account and Depositary Participant (DP) account for funds and securities movement.
  • Review contract notes and statement of account.
Right for redressal against

  • Fraudulent price
  • Unfair brokerage
  • Delays in receipt of money or shares
  • Investor unfriendly companies

Rights to Remedies

  • To take up complaint against a member with the Exchange
  • To take up complaint against a listed company
  • To file arbitration against a member, if there is dispute
  • To challenge the arbitration award before a court of law
  • To file class action suit against the company.
The obligation to ensure

  • Payment on time
  • Delivery of shares on time
  • Despatch of securities for transfer to the company on time
  • Securities purchased are received on the Client’s beneficiary account.
  • Dealing only with SEBI registered trading members and sub-brokers

Obligation Towards Remedies

  • Take up complaints within a reasonable time
  • Complaint to be supported by appropriate documents
  • Provide additional information when called for
  • To participate in dispute resolution meetings


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