CLIENT SERVICING

CLIENT SERVICING (Part 1)

Introduction to Client Servicing

Definition: Client servicing refers to the process of providing assistance and support to clients or investors in a professional and efficient manner.
Importance: Client servicing is crucial in building trust and loyalty with investors, and it plays a significant role in the success of a business or organization.

Key Concepts in Client Servicing

Investor: An investor is any person or entity that commits capital with the expectation of receiving financial returns.
First Time Right (FTR) Approach: The FTR approach refers to the concept of ensuring that any procedure or activity is performed in the right manner, the first time and every time.
Principles of Client Servicing: The key principles of client servicing include attitude, patience, empathy, compassion, liaising, and communication skills.

Principles of Client Servicing

Attitude: A positive attitude is essential in client servicing, and it involves being pleasant, friendly, and courteous to investors.
Patience: Patience is critical in client servicing, as it enables executives to listen to investors' concerns and respond to them in a calm and composed manner.
Empathy: Empathy is the ability to understand and share the feelings of investors, and it is essential in building trust and rapport with them.
Compassion: Compassion involves being able to feel for investors and provide them with support and assistance when needed.
Liaising: Liaising skills are essential in client servicing, as they enable executives to communicate effectively with investors and other stakeholders.
Communication Skills: Effective communication skills are critical in client servicing, and they involve being able to listen, speak, and write clearly and concisely.

Service Etiquettes in Client Servicing

Transparency: Being transparent about products and services is essential in client servicing, and it involves providing investors with clear and accurate information.
Truthfulness: Being truthful and accurate is critical in client servicing, and it involves providing investors with reliable and trustworthy information.
Keeping Promises: Keeping promises is essential in client servicing, and it involves following through on commitments and maintaining trust with investors.
Sharing Knowledge: Sharing knowledge is critical in client servicing, and it involves providing investors with relevant and useful information.
Proactive Support: Providing proactive support is essential in client servicing, and it involves anticipating investors' needs and providing them with assistance before they ask for it.

Basic Rules and Dos and Don'ts in Client Servicing

Inwarding and Verifying Requests: All incoming requests must be inwarded and verified during the inwarding process, and a separate inward number must be allotted by the system for the transaction.
Maker and Checker Concept: A maker and checker concept must be followed, wherein the documents processed by the users are verified by a separate person.
Objection Processing: Standard objection processing must be taken up, and an objection letter must be sent to the shareholder with all original documents enclosed through speed post or registered post.
Dos:
- Ensure that inquiries from investors are adequately and promptly dealt with using the First Time Right Approach.
- Ensure that transfer of securities held in physical form and confirmation of dematerialization/rematerialization requests and distribution of corporate benefits and allotment of securities is done within the time specified under any law.
- Endeavor to render fair, objective, and unbiased services.
- Ensure to collect relevant information for future communication with investors.
Don'ts:
- Avoid misrepresentation and ensure that the information provided to investors is not misleading.
- Avoid any rejections/requests/allotments on flimsy grounds.
- Do not indulge in any unfair competition.
- Do not divulge any investors' confidential information except with the approval/authorization of the clients or when it is required to disclose the information under any law.
- Do not discriminate amongst investors.

Key Concept 1: Investor Grievance Redressal Mechanism

Registration: A registration number is generated and sent to the complainant's email and mobile number.
Details Required: Investors must provide the following details for effective grievance resolution:
- Name of the complainant
- PAN details
- Aadhaar Number (optional)
- Company Name(s) in which securities are held
- DP ID and Client ID or Physical Folio Nos.
- Address for Communication
- Contact Nos. - Mobile No. or Landline No.
- Email Id

Key Concept 2: Transparency in Investor Grievance Redressal

SEBI Requirements: All registered RTAs must disclose data on complaints received and redressal on their websites by the 7th of the succeeding month.
Grievance Redressal Routes: Investors must first approach the entity concerned for redressal, then file a complaint in the SCORES platform if necessary.

Key Concept 3: Dispute Resolution

SMARTODR Portal: Investors can initiate online dispute resolution through the SMARTODR portal if the grievance is not satisfactorily resolved.
Conciliation and Arbitration: The SMARTODR portal provides services for conciliation and arbitration, enabling online/audio-video participation.

Key Concept 4: Importance of Thanking Investors

Building Reputation: Thanking investors helps build a company's reputation and can lead to positive word-of-mouth.
Best Practices: When thanking investors, it's essential to:
1. Greet them by name
2. Express gratitude and state why you enjoyed the experience
3. Repeat your thanks

Key Concept 5: Client Servicing Skills

Right Attitude and Patience: These are essential skills for client servicing profiles.
Empathy: The ability to understand and share the feelings of others is crucial in client servicing.
Product Knowledge: Extensive product knowledge is necessary for effective client servicing.

CLIENT SERVICING (Part 3)

Important Abbreviations

RBI: Reserve Bank of India, the central bank of India
RoM: Register of Members, a record of a company's members
RRF: Rematerialisation Request Form, used to convert electronic securities to physical form
SA: Stabilizing Agent, an entity that helps stabilize the market price of a security
SCCB: Self Certified Syndicate Bank, a bank that is part of a syndicate and self-certifies its transactions
SCRA: Securities Contract Regulation Act, a law that regulates securities contracts in India
SEBI: Securities and Exchange Board of India, the regulator of the securities market in India
SI: Standing Instruction, a pre-authorized instruction to perform a specific transaction
SO: Structured Obligation, a type of debt security with a customized repayment schedule
SOP: Standard Operating Procedure, a set of guidelines for performing a specific task
UPI: Unified Payments Interface, a payment system that enables instant fund transfers
YTM: Yield to Maturity, the total return an investor can expect from a bond if held until maturity

Important Websites

SEBI: https://www.sebi.gov.in/ - official website of the Securities and Exchange Board of India
MCA: http://www.mca.gov.in/ - official website of the Ministry of Corporate Affairs
IEPF: http://www.iepf.gov.in/ - official website of the Investor Education and Protection Fund
NSDL: https://nsdl.co.in/ - official website of the National Securities Depository Limited
CDSL: https://www.cdslindia.com/ - official website of the Central Depository Services (India) Limited
NSE: https://www.nseindia.com/ - official website of the National Stock Exchange of India
BSE: https://www.bseindia.com/ - official website of the Bombay Stock Exchange
NISM: https://www.nism.ac.in/ - official website of the National Institute of Securities Markets