📘 ANNEXURE 1: Investor Charter in respect of Research Analyst (RA)
A. Vision and Mission Statements for Investors
Vision: Invest with knowledge & safety.
Mission: Every investor should be able to invest in right investment products based on their needs, manage and monitor them to meet their goals, access reports, and enjoy financial wellness.
B. Business Transacted by the Research Analyst
- To publish research reports based on the research activities of the RA.
- To provide an independent unbiased view on securities.
- To offer unbiased recommendations with disclosure of financial interests.
- To base research recommendations on publicly available information and observations.
- To conduct audit annually.
C. Services Provided to Investors (No Indicative Timelines)
- Onboarding of clients.
- Disclosure to clients:
- Research reports and recommendations are distributed without discrimination.
- Confidentiality is maintained until the research report is in the public domain.
D. Grievance Redressal Mechanism
In case of any grievance or complaint, the investor should first contact the concerned Research Analyst and seek resolution within 30 days.
If not resolved satisfactorily, the complaint can be lodged with SEBI through the SCORES portal:
SCORES (SEBI Complaints Redress System) allows centralized online tracking and redressal of complaints.
For physical complaints:
Office of Investor Assistance and Education,
Securities and Exchange Board of India,
SEBI Bhavan, Plot No. C4-A, ‘G’ Block,
Bandra-Kurla Complex, Bandra (E), Mumbai – 400051.
E. Expectations from Investors
✅ Do’s
- Always deal with SEBI-registered Research Analysts.
- Verify their valid SEBI registration certificate.
- Check the SEBI registration number.
- Refer to the list of registered analysts:
SEBI RA List - Read disclosures in reports before investing.
- Make payments through banking channels with receipts.
- Check for research recommendations before making investment decisions.
- Clarify doubts with your Research Analyst.
- Report any assured/guaranteed return offers to SEBI.
🚫 Don’ts
- Do not hand over funds to the Research Analyst for investment.
- Avoid falling for luring ads or market rumors.
- Don’t get influenced by time-bound discounts or gifts.
- Never share login credentials of trading or demat accounts.
📘 ANNEXURE 2: Complaint Data to be Displayed by Research Analysts
Note: This disclosure should be updated monthly on the RA’s website or mobile app to ensure transparency and regulatory compliance.
📅 Monthly Complaint Summary
Data for the month ending: __________
| Sr. No. | Received from | Pending at the end of last month | Received | Resolved* | Total Pending# | Pending > 3 months | Average Resolution Time^ (in days) |
|---|---|---|---|---|---|---|---|
| 1 | Directly from Investors | ||||||
| 2 | SEBI (SCORES) | ||||||
| 3 | Other Sources (if any) | ||||||
| Grand Total | |||||||
^ Average Resolution Time = Total time taken to resolve each complaint (in days) ÷ Total complaints resolved in current month.
📈 Trend of Monthly Disposal of Complaints
| Sr. No. | Month | Carried Forward | Received | Resolved* | Pending# |
|---|---|---|---|---|---|
| 1 | April, YYYY | ||||
| 2 | May, YYYY | ||||
| 3 | June, YYYY | ||||
| … | … | ||||
| 12 | March, YYYY | ||||
| Grand Total | |||||
* Includes complaints from previous months resolved in the current month.
# Includes complaints pending as on the last day of the month.
📊 Trend of Annual Disposal of Complaints
| SN | Year | Carried Forward | Received | Resolved* | Pending# |
|---|---|---|---|---|---|
| 1 | 2018–19 | ||||
| 2 | 2019–20 | ||||
| 3 | 2020–21 | ||||
| Grand Total | |||||
* Includes complaints from previous years resolved in the current year.
# Includes complaints pending as on the last day of the year.
📘 ANNEXURE 3: Case Studies – Lessons from Financial History
Learning, unlearning, and relearning are essential in the world of finance. Historical market events offer valuable lessons that help investors and institutions avoid repeating the mistakes of the past. As Mark Twain once said, “We learn from the past that we don’t learn from the past.”
📍 Case 1: Barings Bank Collapse (1995)
What happened: Nicholas Leeson, a derivatives trader at Barings Futures Singapore, incurred massive losses due to unauthorized speculative trades on Nikkei 225 futures and options. Misreporting and lack of checks eventually led to the collapse of Barings Bank.
Key Learnings:
- Single traders cannot move the market; attempts to do so can be catastrophic.
- Position limits must be well-defined and strictly enforced.
- Front and back office functions must be segregated for internal control.
- Exchanges should share information and cooperate across borders.
- Large institutions are equally prone to market risk; robust margin systems are vital.
📍 Case 2: Global Credit Crisis (2008)
What happened: Lax lending standards, excessive risk-taking, poor due diligence, and overreliance on ratings led to a collapse of the mortgage-backed securities market in the U.S., triggering a global financial crisis.
Key Learnings:
- Banks must prioritize risk management over short-term profit goals.
- Moral hazard can distort market discipline if not addressed early.
- Rating agencies must maintain independent analysis and accountability.
- Investors must do their own due diligence and ask, “What could go wrong?”
- Respecting the limits of one’s market understanding is critical (Black Swan risks).
📍 Disgraced Companies
🧯 Enron (USA)
Massive accounting fraud in energy trading led to a $78 billion loss. Former CEO Jeff Skilling was imprisoned for 24 years.
📡 WorldCom (USA)
Telecom giant collapsed due to inflated assets and earnings. CEO Bernard Ebbers sentenced to 25 years for fraud.
💻 Satyam (India)
Founder confessed to ₹5,000 crore fraud. Resulted in investor losses and later acquisition by Tech Mahindra.
📍 Disgraced Fund Managers
💸 Bernard Madoff
Mastermind behind a $65 billion Ponzi scheme. Sentenced to 150 years in prison in 2009.
📉 Michael Milken
Known as the “Junk Bond King.” Convicted of insider trading. Paid $600M fine and served 10 years in prison.
🔍 Raj Rajaratnam
Galleon hedge fund manager convicted for insider trading. Fined and sentenced to 11 years in prison in 2011.
Conclusion: These events highlight the critical role of ethics, compliance, transparency, and independent oversight in financial markets. Learning from these stories builds a culture of responsibility and strengthens the future of investing.
📘 ANNEXURE 4: Suggested Readings
One common trait among great investors is their habit of continuous learning. Charlie Munger of Berkshire Hathaway famously described himself as a “learning machine.” Reading not only expands our understanding of markets, but also teaches life lessons, behavioral insights, and investment philosophies.
Below is a curated list of timeless investment, economic, and personal development books recommended for aspiring and seasoned investors alike.
📖 A Random Walk Down Wall Street
by Burton Malkiel
📖 Common Sense on Mutual Funds
by John Bogle
📖 What Has Worked in Investing
by Tweedy, Browne
📖 The New Finance
by Robert Haugen
📖 The Intelligent Investor
by Benjamin Graham
📖 Security Analysis
by Graham and Dodd
📖 The Millionaire Next Door
by Thomas Stanley & William Danko
📖 Common Stocks and Uncommon Profits
by Philip Fisher
📖 The Essays of Warren Buffett
edited by Larry Cunningham
📖 The Snowball
by Alice Schroeder
📖 Tap Dancing to Work
by Carol Loomis
📖 Poor Charlie’s Almanack
by Charles T. Munger
📖 Deep Simplicity
by John Gribbin
📖 Models of My Life
by Herb Simon
📖 Influence: The Psychology of Persuasion
by Robert B. Cialdini
📖 Autobiography of Benjamin Franklin
📖 Living within Limits
by Garrett Hardin
📖 The Selfish Gene
by Richard Dawkins
📖 Titan: The Life of John D. Rockefeller, Sr.
by Ron Chernow
📖 The Wealth and Poverty of Nations
by David S. Landes
📖 The Warren Buffett Portfolio
by Robert Hagstrom
📖 Getting It Done
by Roger Fisher & Alan Sharp
📖 Three Scientists and Their Gods
by Robert Wright
Tip: Start with “The Intelligent Investor” and “Poor Charlie’s Almanack” for foundational wisdom in investing and mental models.
