Code of Conduct for Participants

1. A participant shall make all efforts to protect the interests of investors.
2. A participant shall always endeavour to—
(a) render the best possible advice to the clients having regard to the client’s
needs and the environments and his own professional skills;
(b) ensure that all professional dealings are effected in a prompt, effective and
efficient manner;
(c) inquiries from investors are adequately dealt with;
(d) grievances of investors are redressed without any delay.
3. A participant shall maintain high standards of integrity in all its dealings with its
clients and other intermediaries, in the conduct of its business.
4. A participant shall be prompt and diligent in opening of a beneficial owner
account, dispatch of the dematerialisation request form, rematerialisation

request form and execution of debit instruction slip and in all the other activities
undertaken by him on behalf of the beneficial owners.
5. A participant shall endeavour to resolve all the complaints against it or in
respect of the activities carried out by it as quickly as possible, and not later
than one month of receipt.
6. A participant shall not increase charges/fees for the services rendered without
proper advance notice to the beneficial owners.
7. A participant shall not indulge in any unfair competition, which is likely to harm
the interests of other participants or investors or is likely to place such other
participants in a disadvantageous position while competing for or executing any
assignment.
8. A participant shall not make any exaggerated statement whether oral or written
to the clients either about its qualifications or capability to render certain
services or about its achievements in regard to services rendered to other
clients.
9. A participant shall not divulge to other clients, press or any other person any
information about its clients which has come to its knowledge except with the
approval/authorisation of the clients or when it is required to disclose the
information under the requirements of any Act, Rules or Regulations.
10. A participant shall co-operate with the Board as and when required.
11. A participant shall maintain the required level of knowledge and competency
and abide by the provisions of the Act, Rules, Regulations and circulars and
directions issued by the Board. The participant shall also comply with the award
of the Ombudsman passed under the Securities and Exchange Board of India
(Ombudsman) Regulations, 2003.
12. A participant shall not make any untrue statement or suppress any material fact
in any documents, reports, papers or information furnished to the Board.
13. A participant shall not neglect or fail or refuse to submit to the Board or other
agencies with which it is registered, such books, documents, correspondence,
and papers or any part thereof as may be demanded/requested from time to
time.
14. A participant shall ensure that the Board is promptly informed about any action,
legal proceedings, etc., initiated against it in respect of material breach or noncompliance
by it, of any law, Rules, regulations, directions of the Board or of
any other regulatory body.
15. A participant shall maintain proper inward system for all types of mail received
in all forms.
16. A participant shall follow the maker—Checker concept in all of its activities to
ensure the accuracy of the data and as a mechanism to check unauthorised
transaction.
17. A participant shall take adequate and necessary steps to ensure that continuity
in data and record keeping is maintained and that the data or records are not

lost or destroyed. It shall also ensure that for electronic records and data, upto-
date back up is always available with it.
18. A participant shall provide adequate freedom and powers to its compliance
officer for the effective discharge of his duties.
19. A participant shall ensure that it has satisfactory internal control procedures in
place as well as adequate financial and operational capabilities which can be
reasonably expected to take care of any losses arising due to theft, fraud and
other dishonest acts, professional misconduct or omissions.
20. A participant shall be responsible for the acts or omissions of its employees and
agents in respect of the conduct of its business.
21. A participant shall ensure that the senior management, particularly decision
makers have access to all relevant information about the business on a timely
basis.
22. A participant shall ensure that good corporate policies and corporate
governance are in place.