SEBI issues New Policy Measures for Investor Grievance Redress Mechanism

Mar 29, 2018 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEB)I has received inputs from listed companies and intermediaries that investor grievances can be resolved faster if the grievance been taken up directly with the entity at the first instance. Accordingly, it appears to be prudent and time saving if the investors approach the concerned listed company or registered intermediary first with all the requisite details to redress the complaints. In case, the listed company or registered intermediary fails to redress the complaint to the investor’s satisfaction, the investor may file a complaint in SCORES.

To enhance investor satisfaction on complaint redressal, SEBI has already put in place a ‘Complaint Review facility’ under SCORES wherein an investor if unsatisfied with the redressal may within 15 days from the date of closure of his complaint in SCORES opt for review of the complaint and the complaint shall be escalated

Effective from August 01, 2018, following procedure shall be followed for filing and redressal of investor grievances using SCORES:

a.       Investors who wish to lodge a complaint on SCORES are requested to register themselves on www.scores.gov.in by clicking on “Register here”. While filing the registration form, details like Name of the investor, PAN, Contact details, Email id, Aadhaar card number(optional), CKYC ID(optional) etc. (Annexure A) may be provided for effective communication and speedy redressal of the grievances. Upon successful registration, a unique user id and a password shall be communicated to the investor through an acknowledgement email / SMS.

b.      An investor shall use login credentials for lodging complaint on SCORES (“Login for registered user” section). Details on how to lodge a complaint on SCORES is at Annexure B.

c.       The complainant may use SCORES to submit the grievance directly to companies / intermediaries and the complaint shall be forwarded to the entity for resolution. The entity is required to redress the grievance within 30 days, failing which the complaint shall be registered in SCORES

d.      Presently, the limitation period for filing an arbitration reference with stock exchanges is three year. In line with the same and in order to enhance ease, speed & accuracy in redressal of investor grievance, the investor may lodge a complaint on SCORES within three years from the date of cause of complaint, where;

·         Investor has approached the listed company or registered intermediary for redressal of the complaint and,

·         The concerned listed company or registered intermediary rejected the complaint or,

·         The complainant does not receive any communication from the listed company or intermediary concerned or,

·         The complainant is not satisfied with the reply given to him or redressal action taken by the listed company or an intermediary.

Stock Exchanges, Depositories and the Association of Mutual Funds of India (AMFI) have been accordingly advised to bring the provisions of this Circular to the notice of all Listed Companies, registered Stock-Brokers, Depository Participants and Asset Management Companies respectively and also to disseminate the same on their websites.

Further, Stock Exchanges, Depositories and AMFI are also required to arrange for adequate publicity of this Circular on an urgent basis.

[Circular No.: SEBI/HO/OIAE/IGRD/CIR/P/2018/58]

URL: https://www.sebi.gov.in/legal/circulars/mar-2018/investor-grievance-redress-mechanism-new-policy-measures_38481.html


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