Knowing the rights and responsibilities provides a way for investors like you to protect themselves from misleading offerings and false policies & procedures as well as makes you an informed investor. Being an investor, you have important rights and responsibilities and fulfilling them will
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Help you achieve your investment goals effectively and efficiently
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Make sure that you are well aware of the risks involved
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Ensure that you are fulfilling all your legal requirements
To protect investors’ interest, make them aware, and ascertain there is transparency in each and every trade/investment transaction, the Securities and Exchange Board of India (SEBI) has put together certain rights, responsibilities, and obligations. Let’s take a closer look at your duties and responsibilities as an investor.
Rights as an investor
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To receive financial services at a fair price
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To select or change your investment advisor, if and when needed
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To get clear, easy-to-understand, and accurate information about your transactions from your broker.
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To be informed about the transaction and maintenance cost (in general and specific to any product or service)
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To be aware about existing policies and procedures and modifications, if any
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To receive timely statements of your accounts
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To get a Unique Client Code (UCC) allotted
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To place orders with the registered broker if you are able to fulfill required norms
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To get appropriate investment suggestions based on your objectives, time horizon, and risk tolerance
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To file a complaint with the exchange if you are not satisfied with the services or in case of unfair brokerage, fraudulent activities, delays in receipts of funds or shares, and other unethical activities
Responsibilities as an investor
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Provide all your KYC and supporting documents
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Update your name, phone number, email ID, or any other KYC details, if there is any change
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Read, understand and verify all the investment-related documents carefully before investing
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Provide complete and accurate information to your broker related to your taxes, current investments, investment goals, and risk tolerance
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Ask your broker questions related to any conflict of interest, commissions, sales charges, and other applicable fees
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Review your holdings/portfolio/ledger from time to time
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Cross-check whether the funds or shares are correctly debited/credited in/from your account
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Settle funds and securities on a timely basis
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Check your bank account and DP details before entering into any transaction
Conclusion
As an investor, you shouldn’t enter into any transaction without preparation. You must know your rights and obligations such as getting high-quality services at a reasonable price, regular settlement of accounts, updating your KYC details, and receiving necessary information beforehand. Also, you should be able to analyze all the relevant information before investing as the opinion of brokers and analysts cannot guarantee the future performance of any scrip or the market. Moreover, knowing the dos and don’ts of trading will also help you in trading smoothly.
