Financial Consumers Empowerment: Combining Financial Education and Consumer Protection Approaches

Prashant Saran

Whole Time Member

Securities and Exchange Board of India

Agenda

Coordinated financial education and consumer protection strategies

Balancing enhanced disclosure and financial education

Existence and awareness of consumer rights and redress mechanisms

Role of intermediaries and financial advice

G20 Principles on financial consumer protection and education

Coordinated Financial Education and Consumer Protection Strategies

Approach 1 a) : Financial Education ahead of consumer protection – Catch Them Young

Various target groups

School children

College students (Young Investors)

Approach 1 b) : Financial Education ahead of consumer protection – Retirement Planning

To be retired group

Coordinated Financial Education and Consumer Protection Strategies

Approach 2 : Combining financial education

with investor education

Workshops/ Seminars through Investor Associations

(Consumer organisations) recognised by SEBI

Joined efforts by SEBI, Exchanges , Depositories,

trade bodies etc.

Product details

Dos and Don'ts & Rights and responsibilities

Question Answer session

Balancing enhanced disclosure and financial education

Various Amendments to have enhanced disclosure

IPO- Application Form/ Abridged prospectus

Categorization of disclosures especially relating to risk factors and

litigations based on their importance/ relevance (impact

/probability)

Rationalisation and logical sequencing of information to make it

more readable and investor friendly, highlighting material

disclosures – Form standardisation.

Disclosure of price performance of past issues of lead managers

White application form for persons applying on non repat basis

(including domestic residents) and blue form for FIIs and those

applying on repat basis

Balancing enhanced disclosure and financial education

Listed companies to disclose their voting results/ patterns on their

websites and to the exchanges within 48 hours from the conclusion

of the concerned shareholders meeting

Existence and awareness of consumer rights and redress mechanisms

Frequently Asked Questions on various topics of securities market made

available on dedicated investor website http://investor.sebi.gov.in Dedicated investor website, being made available in various regional

languages apart from English Investor Assistance – dedicated email id asksebi@sebi.gov.in or through

other modes – letter/ fax/ phone Toll free Helpline for investor assistance and grievance redressal in 14

regional languages apart from English (in the process of being launched)

Existence and awareness of consumer rights and redress mechanisms

SEBI Complaint Redress System (SCORES)

For Investors

Online lodging and status-tracking of complaints

E-acknowledgement to the complainant with unique registration number

Provision for attaching the relevant documents as PDF files.

Query on the Status of any of the Registered complaints.

Forwarding of Reminders/Clarifications for the complaints lodged earlier

Provision to register multiple natures of complaints using a single form.

For SEBI

Online movement of complaints with comments and action taken report to

all stakeholders

Generation of need-based monitoring and query reports for effective

monitoring of pending grievances at various levels.

Monitoring at all levels is made available.

Role of intermediaries and financial

advice

Discussion paper on investment advisers ad their regulation

G20 Principles on financial consumer

protection and education

Sl. No: Draft Principles Status in SEBI

1. Legal and regulatory framework

As per SEBI Act, 1992, SEBI has been mandated to protect the interests of the investors

2. Role of Oversight bodies SEBI is the oversight body for securities market

3. Equitable and Fair Treatment of Consumers

4. Disclosure and Transparency

5. Financial Education and Awareness

G20 Principles on financial consumer

protection and education

Sl. No: Draft Principles Status in SEBI

6. Responsible business conduct of financial services providers and their authorized agents

2. Responsible business conduct of financial service providers and their authorized agents

3. Protection of consumer rights

4. Protection of consumer data and privacy

5. Complaints handling

G20 Principles on financial consumer

protection and education

Sl. No: Draft Principles Status in SEBI

10. Competition

Thank You