Investor Charter – Stock Brokers
Vision
To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.
Mission
- To provide high quality and dependable service through innovation, capacity enhancement and use of technology.
- To establish and maintain a relationship of trust and ethics with the investors.
- To observe highest standard of compliances and transparency.
- To always keep ‘protection of investors’ interest’ as goal while providing service.
Services provided to Investors
- Execution of trades on behalf of investors.
- Issuance of Contract Notes.
- Issuance of intimations regarding margin due payments.
- Facilitate execution of early pay-in obligation instructions.
- Settlement of client’s funds.
- Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
- Issuance of retention statement of funds.
- Risk management systems to mitigate operational and market risk.
- Facilitate client profile changes in the system as instructed by the client.
- Information sharing with the client w.r.t. exchange circulars.
- Redressal of Investor’s grievances.
Rights of Investors
- Ask for and receive information from a firm about the work history and background of the person handling your account, as well as information about the firm itself.
- Receive complete information about the risks, obligations, and costs of any investment before investing.
- Receive recommendations consistent with your financial needs and investment objectives.
- Receive a copy of all completed account forms and agreements
- Receive account statements that are accurate and understandable.
- Understand the terms and conditions of transactions you undertake.
- Access your funds in a timely manner and receive information about any restrictions or limitations on access.
- Receive complete information about maintenance or service charges, transaction or redemption fees, and penalties.
- Discuss your grievances with compliance officer of the firm and receive prompt attention to and fair consideration of your concerns.
Various activities of Stock Brokers with timelines
S.No.
1.
Activities
KYC entered into KRA System and CKYCR
Expected Timelines
10 days of account opening
S.No.
2.
Activities
Client Onboarding
Expected Timelines
Immediate, but not later than one week
S.No.
3.
Activities
Order execution
Expected Timelines
Immediate on receipt of order, but not later than the same day
S.No.
4.
Activities
Allocation of Unique Client Code
Expected Timelines
Before trading
S.No.
5.
Activities
Copy of duly completed Client Registration Documents to clients
Expected Timelines
7 days from the date of upload of Unique Client Code to the Exchange by the trading member
S.No.
6.
Activities
Issuance of contract notes
Expected Timelines
24 hours of execution of trades
S.No.
7.
Activities
Collection of upfront margin from client
Expected Timelines
Before initiation of trade
S.No.
8.
Activities
Issuance of intimations regarding other margin due payments
Expected Timelines
At the end of the T day
S.No.
9.
Activities
Settlement of client funds
Expected Timelines
30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out
S.No.
10.
Activities
‘Statement of Accounts’ for Funds, Securities and Commodities
Expected Timelines
Weekly basis (Within four trading days of following week)
S.No.
11.
Activities
Issuance of retention statement of funds/commodities
Expected Timelines
5 days from the date of settlement
S.No.
12.
Activities
Issuance of Annual Global Statement
Expected Timelines
30 days from the end of the financial year
S.No.
13.
Activities
Investor grievances redressal
Expected Timelines
30 days from the receipt of the complaint
| S.No. | Activities | Expected Timelines |
|---|---|---|
| 1. | KYC entered into KRA System and CKYCR | 10 days of account opening |
| 2. | Client Onboarding | Immediate, but not later than one week |
| 3. | Order execution | Immediate on receipt of order, but not later than the same day |
| 4. | Allocation of Unique Client Code | Before trading |
| 5. | Copy of duly completed Client Registration Documents to clients | 7 days from the date of upload of Unique Client Code to the Exchange by the trading member |
| 6. | Issuance of contract notes | 24 hours of execution of trades |
| 7. | Collection of upfront margin from client | Before initiation of trade |
| 8. | Issuance of intimations regarding other margin due payments | At the end of the T day |
| 9. | Settlement of client funds | 30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out |
| 10. | ‘Statement of Accounts’ for Funds, Securities and Commodities | Weekly basis (Within four trading days of following week) |
| 11. | Issuance of retention statement of funds/commodities | 5 days from the date of settlement |
| 12. | Issuance of Annual Global Statement | 30 days from the end of the financial year |
| 13. | Investor grievances redressal | 30 days from the receipt of the complaint |
DOs and DON’Ts for Investors
DOs
Read all documents and conditions being agreed before signing the account opening form.
DON’Ts
Do not deal with unregistered stock broker.
1
DOs
Receive a copy of KYC, copy of account opening documents and Unique Client Code.
DON’Ts
Do not forget to strike off blanks in your account opening and KYC.
2
DOs
Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.
DON’Ts
Do not submit an incomplete account opening and KYC form.
3
DOs
Receive all information about brokerage, fees and other charges levied.
DON’Ts
Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
4
DOs
Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.
DON’Ts
Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
5
DOs
If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.
DON’Ts
Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
6
DOs
Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.
DON’Ts
Do not opt for digital contracts, if not familiar with computers.
7
DOs
Receive funds and securities / commodities on time within 24 hours from pay-out.
DON’Ts
Do not share trading password.
8
DOs
Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.
DON’Ts
Do not fall prey to fixed / guaranteed returns schemes.
9
DOs
Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days).
DON’Ts
Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
10
DOs
In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.
DON’Ts
Do not follow herd mentality for investments. Seek expert and professional advice for your investments.
11
| DOs | DON’Ts | |
|---|---|---|
| 1 | Read all documents and conditions being agreed before signing the account opening form. | Do not deal with unregistered stock broker. |
| 2 | Receive a copy of KYC, copy of account opening documents and Unique Client Code. | Do not forget to strike off blanks in your account opening and KYC. |
| 3 | Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. | Do not submit an incomplete account opening and KYC form. |
| 4 | Receive all information about brokerage, fees and other charges levied. | Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. |
| 5 | Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. | Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker. |
| 6 | If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted. | Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. |
| 7 | Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades. | Do not opt for digital contracts, if not familiar with computers. |
| 8 | Receive funds and securities / commodities on time within 24 hours from pay-out. | Do not share trading password. |
| 9 | Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges. | Do not fall prey to fixed / guaranteed returns schemes. |
| 10 | Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days). | Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits. |
| 11 | In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. | Do not follow herd mentality for investments. Seek expert and professional advice for your investments. |
Grievance Redressal Mechanism
Level 1 – Approach the Stock Broker at the designated Investor Grievance e-mail ID of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt of the grievance
Details of
Customer care/Complaints
Contact Person
Mr. Ritesh Shah
Address
Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097
Contact No.
18002099393
Email ID
ks.escalation@kotak.com
Working Hours
9 a.m. to 6 p.m. All trading days
Details of
Head of Customer Care
Contact Person
Mr. Tabrez Anwar
Address
Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097
Contact No.
022-42858208
Email ID
ks.servicehead@kotak.com
Working Hours
9 a.m. to 6 p.m. All trading days
Details of
Compliance Officer
Contact Person
Mr. Sandeep Gupta
Address
Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097
Contact No.
022-42858484
Email ID
ks.compliance@kotak.com
Working Hours
9 a.m. to 6 p.m. All trading days
Details of
CEO
Contact Person
Mr. Jaideep Hansraj
Address
Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097
Contact No.
022-42858301
Email ID
ceo.ks@kotak.com
Working Hours
9 a.m. to 6 p.m. All trading days
| Details of | Contact Person | Address | Contact No. | Email ID | Working Hours |
|---|---|---|---|---|---|
| Customer care/Complaints | Mr. Ritesh Shah | Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097 | 18002099393 | ks.escalation@kotak.com | 9 a.m. to 6 p.m. All trading days |
| Head of Customer Care | Mr. Tabrez Anwar | Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097 | 022-42858208 | ks.servicehead@kotak.com | 9 a.m. to 6 p.m. All trading days |
| Compliance Officer | Mr. Sandeep Gupta | Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097 | 022-42858484 | ks.compliance@kotak.com | 9 a.m. to 6 p.m. All trading days |
| CEO | Mr. Jaideep Hansraj | Kotak Towers, 8th Floor, Building No.21, Infinity Park, Off Western Express Highway, Malad (East), Mumbai, Maharashtra - 400097 | 022-42858301 | ceo.ks@kotak.com | 9 a.m. to 6 p.m. All trading days |
In absence of response/complaint not addressed to your satisfaction, you may lodge a complaint with SEBI, NSE Exchange, BSE Exchange, Investor Service Centre | National Commodity & Derivatives Exchange Limited and MCX. Please quote your Service Ticket/Complaint Ref No. while raising your complaint at SEBI SCORES/Exchange portal
Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange.
Complaints Resolution Process at Stock Exchange explained graphically:
Timelines for complaint resolution process at Stock Exchanges against stock brokers
S.No.
1.
Type of Activity
Receipt of Complaint
Timelines for activity
Day of complaint (C Day).
S.No.
2.
Type of Activity
Additional information sought from the investor, if any, and provisionally forwarded to stock broker.
Timelines for activity
C + 7 Working days.
S.No.
3.
Type of Activity
Registration of the complaint and forwarding to the stock broker.
Timelines for activity
C+8 Working Days i.e. T day.
S.No.
4.
Type of Activity
Amicable Resolution.
Timelines for activity
T+15 Working Days.
S.No.
5.
Type of Activity
Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution.
Timelines for activity
T+16 Working Days.
S.No.
6.
Type of Activity
Complete resolution process post GRC.
Timelines for activity
T + 30 Working Days.
S.No.
7.
Type of Activity
In case where the GRC Member requires additional information, GRC order shall be completed within.
Timelines for activity
T + 45 Working Days.
S.No.
8.
Type of Activity
Implementation of GRC Order.
Timelines for activity
On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order.
S.No.
9.
Type of Activity
In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration
Timelines for activity
Within 7 days from receipt of order
S.No.
10.
Type of Activity
If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs
Timelines for activity
Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor.
S.No.
11.
Type of Activity
Stock Broker shall file for arbitration
Timelines for activity
Within 6 months from the date of GRC recommendation
S.No.
12.
Type of Activity
In case the stock broker does not file for arbitration within 6 months
Timelines for activity
The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any.
| S.No. | Type of Activity | Timelines for activity |
|---|---|---|
| 1. | Receipt of Complaint | Day of complaint (C Day). |
| 2. | Additional information sought from the investor, if any, and provisionally forwarded to stock broker. | C + 7 Working days. |
| 3. | Registration of the complaint and forwarding to the stock broker. | C+8 Working Days i.e. T day. |
| 4. | Amicable Resolution. | T+15 Working Days. |
| 5. | Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution. | T+16 Working Days. |
| 6. | Complete resolution process post GRC. | T + 30 Working Days. |
| 7. | In case where the GRC Member requires additional information, GRC order shall be completed within. | T + 45 Working Days. |
| 8. | Implementation of GRC Order. | On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order. |
| 9. | In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration | Within 7 days from receipt of order |
| 10. | If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs | Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor. |
| 11. | Stock Broker shall file for arbitration | Within 6 months from the date of GRC recommendation |
| 12. | In case the stock broker does not file for arbitration within 6 months | The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any. |
Handling of Investor’s claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)
1. Default of TM/CM Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:
- Circular is issued to inform about declaration of Stock Broker as Defaulter.
- Information of defaulter stock broker is disseminated on Stock Exchange website.
- Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period.
- Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.
Following information is available on Stock Exchange website for information of investors:
- Norms for eligibility of claims for compensation from IPF.
- Claim form for lodging claim against defaulter stock broker.
- FAQ on processing of investors’ claims against Defaulter stock broker.
- Provision to check online status of client’s claim.
Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI) @ https://scores.gov.in/scores/Welcome.html