The Securities and Exchange Board of India (SEBI) on July 04, 2022 has issued a circular to amend circular no. SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017 and notifies on Investor Grievance Redressal Mechanism.
The following have been notified:
• Online Web Based Complaints Redressal System:
o SEBI has implemented an online platform (SCORES) designed to help investors to lodge their complaints, pertaining to securities market, against listed companies and SEBI registered intermediaries.
o In line with the same, to enable investors to lodge and follow up their complaints and track the status of redressal of such complaints from anywhere, all Recognized Stock Exchanges including Commodity Derivatives Exchanges / Depositories are advised to design and implement an online web based complaints redressal system of their own, which will facilitate investors to file complaints and escalate complaints for redressal through Grievance Redressal Committee (GRC), arbitration, appellate arbitration etc. in accordance with their respective byelaws, rules and regulations. The above redressal mechanism shall be implemented within 6 months from the issuance of this circular. The salient features of the system are enclosed as Annexure.
o The system is intended to expedite redressal / disposal of investors’ complaints as it would also obviate the need for physical movement of complaints. Further, the possibility of loss, damage or misdirection of the physical complaints would be avoided. It would also facilitate easy retrieval and tracking of complaints at any time.
o All Recognized Stock Exchanges including Commodity Derivatives Exchanges / Depositories are advised to widely publicise (including in media) its online web based complaints redressal system.
• Hybrid Mode of Conducting GRC and Arbitration / Appellate Arbitration:
o During the COVID pandemic, Stock Exchanges were advised to conduct GRC and arbitration / appellate arbitration meetings/hearings online for faster redressal of complaints. The online process of GRC and arbitration / appellate arbitration saves time and cost of the parties involved which is in the interest of investors.
o Therefore, it has been decided that the Stock Exchanges shall continue with the hybrid mode (i.e., online and offline) of conducting GRC and arbitration / appellate arbitration process. The Depositories shall follow the hybrid mode (i.e. online and offline) of conducting GRC and arbitration / appellate arbitration process.
• Amendment to Circular no. SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017
Clause IJ(iii), which specifies Speeding up grievance redressal mechanism has been substituted, namely:
1.J. Speeding up grievance redressal mechanism
“(iii) A client, who has a claim / counter claim up to Rs.20 lakh (Rs. Twenty lakh) and files arbitration reference, will be exempted from payment of the fees specified in Clause 1.J.(i).”
SEBI directs all Recognized Stock Exchanges including Commodity Derivatives Exchanges / Depositories to:
a) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately;
b) bring the provisions of this circular to the notice of the members/ DPs and also to disseminate the same through their website; and
c) take steps to make the investors aware of the aforesaid changes/ modifications.
[Circular No. SEBI/HO/MRD1/ICC1/CIR/P/2022/94]
