This Article is From Dec 16, 2021

SEBI Directs Merchant Bankers To Disclose Investor Charter, Complaints Data

SEBI has directed merchant bankers to disclose their investor charter as well as data pertaining to complaints they received on their websites

SEBI Directs Merchant Bankers To Disclose Investor Charter, Complaints Data

SEBI has asked merchant banks to share their investor charters and complaints data

New Delhi:

Securities and Exchange Board of India (SEBI) has directed merchant bankers to disclose their investor charter as well as data pertaining to complaints they received on their websites for private placement of units by infrastructure investment trusts (InvITs), that are proposed to be listed.    

The new guidelines will come into effect from January 1, 2022, the market regulator said in a notification.      

With a view to providing investors relevant information about the primary market issuances by InvITs, an investor charter has been prepared by SEBI in consultation with merchant bankers for private placement of units by InvITs propose to be listed.

The charter is a brief document containing different services to investors at a single place for ease of reference.      

SEBI has asked all registered merchant bankers to disclose on their websites, the charter for private placement of units by InvITs proposed to be listed.

Additionally, in order to bring about transparency in the investor grievance redressal mechanism, the regulator has directed merchant bankers to disclose on their respective websites, the data on complaints received against them or against issues dealt by them.      

The data need to be disclosed latest by the 7th of the succeeding month, it said.

In addition to this, the regulator has also prescribed a format for disclosing data of complaints on their websites.      

Under the disclosure, merchant bankers will have to disclose information about complaints received during the month, complaints carried forward from the preceding month, resolved, total pending complaints, complaints pending for more than three months and average time taken in resolution of a complaint.

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