Markets regulator Sebi on Tuesday directed merchant bankers to disclose investor charter and data pertaining to the complaints they receive on their websites.
The circular will come into effect from January 1, 2022.
It listed the various categories for which investor charter needs to be disclosed.
These categories are initial public offer and further public offer, including offer for sale, rights issue, qualified institutions placement, preferential issue, SME IPO and FPO including OFS, buyback of securities, delisting of equity shares and substantial acquisitions of shares and takeovers.
Sebi has provided format for disclosure of investor charter under these categories and investor grievance mechanism and how to access it.
Besides, it also mentions the timelines for resolution of complaints.
"With a view to provide investors an idea about the various activities pertaining to primary market issuances as well as exit options like takeovers, buybacks or delistings, an investor charter has been developed in consultation with the merchant bankers," Sebi said in a circular.
The charter is a brief document that contains different services to the investors at one single place for ease of reference.
With a view to bring about transparency in the Investor Grievance Redressal Mechanism, Sebi said that all registered merchant bankers shall disclose on their websites, the data on complaints received against them or against issues dealt by them and redressal thereof, on each of the categories separately as well as collectively.
This needs to be disclosed latest by 7th of succeeding month in the format prescribed by Sebi.
"These disclosure requirements are in addition to those already mandated by Sebi," it said.
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