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TMI BlogInvestor grievances redressal mechanism – Handling of SCORES complaints by stock exchanges and Standard Operating Procedure for non-redressal of grievances by listed companiesX X X X Extracts X X X X X X X X Extracts X X X X ..... terms of SEBI circular SEBI/HO/CFD/CMD/CIR/P/2020/12 dated 22 January, 2020 , Stock Exchanges shall, having regard to the interest of investors and the securities market, inter alia take action against listed companies for non- compliance with the provisions of the Listing Regulations and circulars/guidelines issued thereunder, including failure to ensure expeditious redressal of investor complaints under Regulation 13 of the Listing Regulations. 3. This circular lays down the procedure for handling complaints by the stock exchanges as well as standard operating procedure for actions to be taken against listed companies for failure to redress investor grievances. Handling of complaints by stock exchanges: 4. Stock exchanges will be the first recourse for certain categories of complaints against listed companies as provided in Annexure-2. The procedure and actions mentioned below will be applicable for these categories of complaints only. 5. Investors are encouraged to initially take up their grievances for redressal with the concerned listed company directly. SCORES platform can also be used to submit grievances directly to the company for resolution, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of such notice, the concerned DSE shall issue notices to the promoter(s) of such entities, to ensure submission of ATRs on the pending complaints and payment of fines by the listed entity within 10 days from the date of such notice. 16. In case the listed entity fails to comply with the aforesaid requirement and/ or pay fine levied within the stipulated period as per the notices, the DSE shall forthwith intimate the depositories to freeze the entire shareholding of the promoters and promoter group in such entity as well as all other securities held in the demat account of the promoter and promoter group. 17. The depository(ies) shall immediately freeze such demat accounts and also intimate the promoter(s) about the details of non-compliances resulting in freezing of their demat accounts. 18. In case listed entity fails to pay the fine or resolve the complaint despite receipt of the notice as stated above, the DSE may initiate other action as deemed appropriate. 19. While issuing the aforementioned notices, the DSE shall also send intimation to other recognized stock exchange(s) where the shares of the non-compliant entity are listed. 20. Once sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of listed entities and the listed entities shall in turn bring the same to the notice of their promoter/promoter group. 33. The recognized stock exchanges may keep in abeyance the action against any non-compliant entity or withdraw the action in specific cases where specific exemption from compliance with the requirements under the Listing Regulations/moratorium on enforcement proceedings has been provided for under any Act, Court/Tribunal Orders etc. 34. The circular shall come into force from 01 September, 2020. 35. 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. 36. This circular is available on SEBI website at www.sebi.gov.in under the category Legal . Yours faithfully, Medha Sonparote General Manager Investor Grievance Redressal Division Office of Investor Assistance and Education Tel No. 022 26449312 Email id - [email protected] Annexure -1 Timelines for handling of com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Non receipt of interest for delay in redemption proceeds of debt security 10. Non receipt of interest for delay in refunds 11. Non receipt of interest on securities 12. Non receipt of redemption amount of debt securities 13. Non receipt of refund in Public/ Rights issue 14. Non receipt of Rights Issue form 15. Non receipt of securities after conversion/ endorsement/ consolidation/ splitting 16. Non receipt of securities after transfer 17. Non receipt of securities in public/ rights issue 18. Non receipt of shares after conversion/ endorsement/ consolidation/ splitting 19. Non receipt of shares after transfer 20. Non receipt of shares after transmission 21. Non receipt of shares in public/ rights issue (including allotment letter) 22. Non-receipt of interest for delay in dispatch/credit of securities 23. Receipt of refund/ dividend in physical mode instead of electronic mode 24. Receipt of shares in physical mode instead of electronic mode 25. Demat/Remat 26. Any other nature as may be informed from time to time However, the stock exchanges shall not handle the following type of complaints and forward the complaints as directed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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