On December 13, 2021, SEBI issued a circular with more disclosure requirements for the investment advisers and research analysts.
All the investment advisers and research analysts are required to display the following on their website and mobile app
- Investor Charter
- Investor Complaints
The formats for the investor charter and the complaints table are given in the circulars.
As per the circulars, here are further instructions:
INVESTOR CHARTER
– To be prominently displayed on the website and mobile app
– For Investment Advisers not having websites/mobile applications – as a one-time measure, the Investor Charter to be sent to the investors on their registered e-mail address.
INVESTOR COMPLAINTS
– Disclosure of the details of investor complaints by 7th of the succeeding month in the format given in the circular
– Display of link/option to lodge complaint with them directly on their websites and mobile apps.
– Link to SCORES website/ link to download mobile app (SEBI SCORES) also to be provided.
– For Investment Advisers not having websites/mobile applications – the complaint status to be sent to the investors on their registered e-mail address on monthly basis.
The disclosure requirements are effective from January 01, 2022.
WAS THERE A BETTER ALTERNATIVE TO DO THIS?
Given the length of the table for displaying details about the content, it is practically difficult to mention the same on the home page of the website and mobile app.
This is what SEBI could have done:
All complaints details are available on the SCORES platform. However, currently, only the RIAs and RAs can login and access it.
Why not just make it an open page for everyone to see?
In fact, SEBI has a directory of registered intermediaries. Add a link to this information of the SCORES profile of the same intermediary.
The RIA and RA can use the same link on their websites and mobile apps as well.
This information visible on SEBIs platform has far more credibility.
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Basically, the entities have to just ensure that they have an investor charter and a link to the SEBI intermediary SCORES profile page.
Click here for the link to the circular for investment advisers
Click here for the link to the circular for research analysts