SEBI issued an updated Investor Charter for Investment Advisers (IAs) on June 2, 2025, through Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/80. This update rescinds the earlier 2021 charter and amends the 2024 Master Circular. The changes reflect new developments such as the Online Dispute Resolution (ODR) platform and SCORES 2.0, aiming to enhance investor protection, financial literacy, and grievance redressal transparency.
Vision and Mission
The charter outlines a simple vision: “Invest with knowledge & safety.” Its mission emphasizes enabling every investor to choose suitable products, monitor progress, and achieve financial wellness.
Obligations of Investment Advisers
IAs must:
- Enter into client agreements covering fees, conflict of interest disclosures, and confidentiality.
- Conduct unbiased risk profiling and suitability assessments.
- Undergo annual audits.
- Disclose complaints status and firm details (registration number, validity, contact info, SEBI office details) on their websites.
- Employ only qualified staff, communicate via official numbers, and keep records of all advisory interactions.
- Ensure advertisements comply with SEBI’s Advertisement Code and provide equal service to clients opting for similar products
SEBI – Investor Charter for Inv…
.
Services to Investors
Advisers must:
- Share agreements and complete KYC at onboarding.
- Provide full disclosures on business affiliations, compensation, and conflicts of interest.
- Disclose risk profiles and the use of AI tools in advisory services.
Give product-specific risk warnings and maintain confidentiality of client data. - Adhere to defined service timelines
Grievance Redressal Mechanism
Investors can raise complaints through:
- Directly with the IA – must be resolved within 21 days.
- SCORES 2.0 – SEBI’s centralized platform with two-tier review: IAASB first, then SEBI.
- SMARTODR – online conciliation and arbitration if dissatisfied with prior resolutions.
- Physical submission – to SEBI’s Investor Assistance and Education office in Mumbai
Annexure B provides complaint disclosure formats. IAs must update monthly complaint data on their websites by the 7th of each month, including pending cases, resolution time, and impersonation-related complaints. Trends of monthly and annual complaint disposal must also be published.
Rights of Investors
The charter codifies investor rights, including:
- Privacy and confidentiality.
- Transparent, equitable treatment.
- Adequate and ongoing disclosures.
- Timely grievance redressal and fair advertisements.
- Suitability of products, clear risk warnings, and exit rights.
- Special provisions for vulnerable investors (e.g., differently abled).
- Protection from coercive or one-sided clauses
Investor Responsibilities
Investors are expected to:
- Deal only with SEBI-registered advisers and verify credentials.
- Pay advisory fees through banking channels or CeFCoM.
- Demand risk profiling before accepting advice and ask questions to clarify doubts.
- Be vigilant, seek written terms, and report any malpractices (like assured return offers).
- Avoid providing funds directly to IAs, falling for tips or misleading advertisements, or sharing sensitive account credentials.
Conclusion
The revised Investor Charter for IAs represents SEBI’s continuing push toward fair, transparent, and investor-centric advisory services. By clearly defining the roles and obligations of advisers, codifying investor rights and responsibilities, and strengthening grievance redressal via SCORES 2.0 and SMARTODR, the charter seeks to foster accountability and enhance investor confidence in India’s advisory ecosystem
