Who is an investor?

An investor is a person who invests his savings in securities keeping in mind the following objectives:

(A) Invests its savings through securities in the development of the economy.

(B) Helping the promoters in starting the project in the form of contribution of risk capital.

(D) His invested capital will increase in the long term, hence the investor is interested in the true value of the enterprise and not in earning short-term profits from market price fluctuations like Speculator, Dealer, and Jobber.

A person who invests through the above-mentioned activities is considered an investor.

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What are the rights of investors?

The following are the rights of investors as shareholders of a company:

(1) To obtain a share certificate in case of allotment or transfer of shares.

(2) To receive the annual report along with the balance sheet and profit and loss account.

(3) To vote in person in the meeting of shareholders of the company or to appoint a proxy.

(4) To take civil and criminal action against the company.

(5) Receiving dividend bonus rights share.

(6) Contacting CLB to organize the annual meeting of the company.

7) Viewing the minutes of the general meeting or obtaining its copy.

(8) Applying for winding up of the company and receiving the residual share.

(9) To demand an extraordinary meeting in special circumstances.

(10) To demand an investigation into the company's actions if there is any necessary fact.

(11) To demand an investigation into operational errors.

(12) Right to express one's views regarding the interests of the company.

Necessary measures taken to protect the interests of investors

For speedy resolution of investors' complaints, this interim legislative arrangement has laid down guidelines regarding the appointment of the Ombudsman. There is a provision for quick and mutual settlement of complaints related to the intermediary or issuer company working in the securities market. The simple form of the rules made by SEBI in this regard is described below-

(1) SEBI appointed an Ombudsman to resolve the complaints of investors so that the problems can be resolved quickly.

(2) This Ombudsman will investigate investor complaints arising fromt securities and related practices.

(3) The office of grievance redressal will be located in the main or regional office of SEBI. It can also be at some other place if necessary.

(4) The following complaints of investors will be accepted for redressal by the Ombudsman appointed by SEBI -

(i) Allotment of shares, non-receipt of refund.

(ii) Non-receipt of shares, certificates, bonus/rights shares.

(iii) Complaint regarding non-receipt of dividend and interest

(iv) Complaint regarding non-receipt or delayed receipt of interest on debentures, redemption amount.

(v) Annual report or any mandatory periodic statement etc.

(vi) Matters related to he returns on investment from mutual funds and collective investment schemes.

(vii) Non-receipt of the mandatory statement of holdings received from the depository.

(viii) Any complaint related to issuing rights or bonus shares by the listed company.

5) Approval of the following mutual agreements between the parties.

(6) To use redressal of grievances in the absence of agreement or mutual acceptance.

What is investor protection of rights?

Any dissatisfied and aggrieved party who has to submit a complaint will be required to complete the following procedures-

1) He has already made a complaint regarding the complaint or the guilty person.

(2) The concerned party has filed the complaint within 6 months of the cancellation of the complaint or within 7 months of its filing.

3) Complaints regarding such cases in which SEBI has already initiated some action. The above-mentioned problem will be presented to the SEBI office or other arrangements will be made as per the orders of SEBI.