SEBI Issues Revised Investor Charter for Investment Advisers What You Must Know
SEBI has issued a revised investor charter for investment advisers to strengthen transparency, protect investor interests, and ensure ethical advisory practices. This updated charter replaces the earlier format and outlines detailed rights, responsibilities, timelines for services, and grievance redressal norms.
Let’s break down what this means for both advisers and retail investors in India.
What Is the Investor Charter for Investment Advisers?
The revised investor charter aims to:
- Safeguard investor rights
- Set expectations for service delivery
- Enhance transparency
- Ensure better grievance handling
Key Highlights of SEBI’s Revised Charter
Here’s what has changed under the revised guidelines notified by SEBI:
| Area | Updated Provisions (2025) |
|---|---|
| Disclosure | IAs must disclose all conflicts of interest, product risks, and remuneration structures clearly. |
| Service Timelines | Defined timeframes for onboarding, suitability assessment, and portfolio review are now mandatory. |
| Risk Profiling | Must be conducted before any advice. Needs to be recorded and retained. |
| Fee Structure | Advisers must provide upfront fee disclosure – no hidden charges. |
| Redressal | Grievances must be resolved within 30 days. Escalation process to SEBI SCORES to be displayed. |
| Code of Conduct | Reiterated duties like acting in fiduciary capacity, maintaining confidentiality, avoiding conflict of interest. |
Where Can You Access the Charter?
As per SEBI Circular SEBI/HO/MIRSD/DoP/P/CIR/2025/50 dated 30th May 2025, investment advisers are:
- Required to host the charter on their website homepage
- Share a copy of the charter with every new client
- Display the same at all office locations
🔗 You can view the circular on SEBI’s official website.
What Are Your Rights as a Client?
Under the revised investor charter, investors are entitled to:
- Fair and unbiased advice
- Transparent disclosure of fees and commissions
- Regular portfolio reviews
- Timely service and updates
- Right to complain and escalate grievances
Expert Insight
CA Ramesh Khandelwal, a SEBI-registered IA, says:
“The revised charter enforces clarity. Clients now get full visibility into adviser duties, risks, and costs—boosting trust in India’s advisory ecosystem.”
Frequently Asked Questions (FAQs)
Q1. Is it mandatory for advisers to follow the revised charter?
Yes. SEBI has made it compulsory from June 2025 for all registered investment advisers.
Q2. What if the adviser doesn’t display the charter?
You can report such non-compliance through the SEBI SCORES portal.
Q3. Does this apply to mutual fund distributors?
No. The revised investor charter applies only to SEBI-registered Investment Advisers, not distributors.
Why This Matters for Indian Investors
With rising retail participation in equities, SEBI’s move ensures that retail clients:
- Understand what to expect from advisers
- Can make more informed financial decisions
Summary
SEBI has revised the investor charter for investment advisers, mandating clearer disclosures, grievance redressal steps, and service timelines. This move boosts transparency and strengthens client rights.