The Securities and Exchange Board of India (SEBI) on June 26, 2023, issued a Circular on Investor Service Centres of Stock Exchanges
This Circular aims to protect the interests of investors in securities and to promote the development and regulate the securities markets
The following has been stated namely: -
• Investor Service Center shall at least provide the following basic minimum facilities namely: -
(i) Four financial daily newspapers with at least one in the regional language of the place where the ISC is situated. In case, the financial newspaper is not available in the regional language of the place, any leading newspaper in that regional language shall be provided.
(ii) A dedicated desktop or laptop with internet connectivity to enable the investors to access various relevant information available in the public domain and also to access SEBI’s and the stock exchange’s grievance redressal portals.
(iii) Facilities for receiving investor complaints in both physical and electronic form. One dedicated staff shall be posted at the ISC to register investor complaints and also to guide & counsel the investors. The updated status of all complaints shall be maintained in electronic form.
(iv) Facilitation desks at all ISCs to assist the investors in the dispute resolution process. These desks shall, among other things, provide investors with the required documents or details, if any, for making applications to investor Grievance Redressal Panels and filing arbitration applications (including appellate arbitration).
(v) Arbitration and appellate arbitration facility at all ISCs including the video-calling facility to investors for attending their online arbitration (including appellate arbitration) or Grievance Redressal meetings, if any.
• The stock exchanges shall ensure the following namely: -
i. All the officials at ISCs have been provided adequate training on various areas of the securities market, how to counselor guide the investors to appropriately lodge their complaints (including lodging complaints on SCORES platforms), how to resolve the investor grievances, promotion of investor education and awareness to enhance securities market literacy and retail participation, etc.
ii. The training on the securities market should, inter-alia, cover the following :
(a) overview of the securities market (both primary and secondary markets)
(b) Functions and operations of Stock Exchanges, Clearing CorporationsandDepositories;
(c) Functions and operations of market intermediaries dealing with investors such as Stock Brokers, Depository Participants, Mutual Funds, Investment Advisers, Research Analysts, Portfolio Managers, Registrar, Transfer Agents, etc.
(iii) The officials at ISCs should also have requisite NISM certification covering the areas mentioned in paragraph 3.3(ii) above.
• The provisions of this Circular Except for the restrictions in paragraph 3.3 above, this circular's provisions will take effect 90 days after it is issued. From the date of issuance of this circular provided, the requirements in paragraph 3.3 above shall be complied with gradually, i.e., at least one official at ISCs shall comply with the requirements within 6 months, and all officials at ISCs shall comply within 12 months.
• This circular is available on the SEBI website at www.sebi.gov.in at “Legal Framework-Circulars.
[Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/104]
