Investor grievance redress mechanism – new policy measures - SEBI - SEBI/HO/OIAE/IGRD/CIR/P/2018/58

CIRCULAR SEBI/HO/OIAE/IGRD/CIR/P/2018/58 March 26, 2018 To All Investor Associations recognized by SEBI All Companies whose securities are listed on SEBI recognized Stock Exchanges (Through the Stock Exchanges) All recognized Stock Exchanges All Depositories All Registered Registrars to an Issue and Share Transfer Agents All Registered Merchant Bankers Association of Mutual Funds in India (AMFI) All Intermediaries registered with SEBI (Through the Stock Exchanges for Stock Brokers and Sub Brokers, Depositories for Depository Participants, AMFI for Mutual Funds and Asset Management Companies) Dear Sir/Madam, Subject: Investor grievance redress mechanism new policy measures 1. This circular is being issued in continuation to SEBI circular no. CIR/OIAE/1/2014 dated 18th December, 2014 regarding redressal of investor grievances through SEBI Complaints Redress System (SCORES) platform. 2. SCORES is a web based centralized system to capture investor complaints against listed companies and registered intermediaries and is available 24x7. It was introduced on June 8, 2011 and has been facilitating redressal of investor grievances in a speedy manner. 3. SEBI encourages investors to lodge complaints through electronic mode in SCORES. However, complaints received from investors in physical form are also digitized by SEBI and uploaded in SCORES. Thereafter, follow-up actions of the complaint are done in electronic form only i.e. through SCORES. Investors can easily access, retrieve and preserve the complaints lodged by them in electronic mode. Further, it enhances the turnaround time and speed of redressal of a complaint. 4. Investors may contact the Investor Associations (IAs) recognized by SEBI for any assistance in filing complaints on SCORES. The lists of Investor Associations are available on SEBI website (www.sebi.gov.in). Investors may also seek assistance in filing complaints on SCORES from SEBIs toll free helpline number 1800 266 7575 or 1800 22 7575. 5. SEBI 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. 6. At present following types of complaints are not dealt through SCORES: i. Complaints against the companies which are unlisted/delisted, in dissemination board of Stock Exchanges, ii. Complaints those are sub-judice i.e. relating to cases which are under consideration by court of law, quasi-judicial proceedings etc. iii. Complaints falling under the purview of other regulatory bodies viz. RBI, IRDAI, PFRDA, CCI, etc., or under the purview of other ministries viz., MCA, etc. iv. Complaints against a sick company or a company where a moratorium order is passed in winding up / insolvency proceedings. v. Complaints against the companies where the name of company is struck off from RoC or a vanishing company as per list published by MCA. vi. Suspended companies, companies under liquidation / BIFR / etc. 7. 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 8. 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. 9. Stock Exchanges, Depositories and the Association of Mutual Funds of India (AMFI) are 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 should also arrange for adequate publicity of this Circular on an urgent basis. 10. This Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 11. This Circular is available on SEBI website at www.sebi.gov.in under the category Legal /Circulars . Yours faithfully, Medha Sonparote Deputy General Manager Office of Investor Assistance and Education Annexure A Details to be provided while registering on SCORES with effect from August 01, 2018: i. Name of the complainant* ii. Pan Number* iii. Aadhaar Number (Optional) iv. CKYC ID (Optional) v. DP id Client Id vi. Postal address for communication* vii. Contact number Mobile* : Landline viii. Email id* For receipt of acknowledgement letter / updates of complaints on SCORES. ix. Bank account details To facilitate direct credit of benefits to investor. x. Client id as given by Broker / Stock Exchange. Note: * are mandatory fields.