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TMI BlogRedressal of investor grievances through the SEBI Complaint Redressal (SCORES) Platform and linking it to Online Dispute Resolution platformX X X X Extracts X X X X X X X X Extracts X X X X ..... registered intermediary or (c) market infrastructure institution ( Entities ) remain unresolved. Since then, SEBI has revised and strengthened the process of facilitating the redressal of grievances by such Entities. Currently, the process of investor grievances redressal on SCORES is governed by the Master Circular dated November 07, 2022 on Processing of investor complaints against listed companies in SEBI Complaints Redress System SCORES (bearing reference SEBI/HO/OIAE/IGRD/P/CIR/2022 /0150 ). 2. In order to strengthen the existing investor grievance handling mechanism through SCORES by making the entire redressal process of grievances in the securities market comprehensive by providing a solution that makes the process more efficient by reducing timelines and by introducing auto-routing and auto-escalation of complaint, SEBI notified the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 and amended the regulations as mentioned under Schedule I vide notification dated August 16, 2023. Consequently, it becomes necessary to revise the extant process for redressal of investors grievances against Entities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated Bodies shall comply with this Circular. Market Infrastructure Institutions and Designated Bodies shall bring the provisions of this Circular to the notice of all listed companies and registered intermediaries, and disseminate the same on their respective websites. 9. 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. 10. This Circular is available on SEBI website at www.sebi.gov.in. Yours faithfully, Vandana Rajesh Kumar Deputy General Manager Investor Grievance Redressal Division Office of Investor Assistance and Education Tel No. 022 26449646 Email id - [email protected] Annexure I Framework for handling of investor grievances received through SCORES by Entities and monitoring of the redressal process by designated bodies. 1. Submission of the Complaint and handling of the Complaint by the Entity: 1.1. All Entities shall review the investors grievances redressal mechanism from time to time to further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y may stipulate. The Designated Body shall stipulate the timeline in such as manner to ensure that the Designated Body submits the revised ATR to the complainant on SCORES within 10 calendar days of the review sought. 2.4. The Designated Bodies shall be responsible for: 2.4.1. Monitoring and handling grievance redressal of investors against respective entities under their domain as stipulated under Schedule II. 2.4.2. Taking non-enforcement actions including issuing advisories, caution letters for non-redressal of investor grievances and referring to SEBI for enforcement actions. 3. Second Review of the Complaint: 3.1. The complainant may seek a second review of the Complaint within 15 calendar days from the date of the submission of the ATR by the Designated Body. In case the complainant is satisfied with the ATR provided by the concerned Designated Body or complainant does not choose to review the Complaint within the period of 15 calendar days, the Complaint shall be disposed on SCORES. 3.2. In case the complainant is not satisfied with the ATR provided by the Designated Body or the concerned Designated Body has not submitted the ATR within 10 calendar days, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tach a declaration, with the online form, on the letter head of the company signed by the Compliance Officer, as under: 5.3.1. Companies intending to list on Main Board: A declaration that the Draft Red Herring Prospectus has been submitted to SEBI. 5.3.2. Companies intending to list on SME/Debt Platform of stock exchange: A declaration that an application to list its securities has been submitted with the stock exchange/in-principal approval to list its securities has been obtained from the stock exchange. 5.4. The SCORES credentials shall be sent to the e-mail ID of the Compliance Officer or the Dealing Officer as provided in the online form. 5.5. Complaints against listed companies can be processed by companies in-house or through its Registrar to Issue and Share Transfer Agent (RTI/STA). In case the complaints are processed by the RTI/STA on behalf of the listed company, any failure on the part of the RTI/STA to redress the complaint or failure to update Action Taken Report (ATR) in SCORES, will be treated as failure of the listed company to furnish information to SEBI and non redressal of investor complaints by the listed company. 5.6. The Entities can updat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /CFD/CMD/CIR/P/2020/12 dated January 22, 2020. 7.3. Fines shall also be levied on companies, which are suspended from trading on the stock exchanges. 7.4. DSE shall issue a notice intimating the listed company about the levy of fines while also directing it to submit ATRs on the pending complaints and payment of the fines within 15 days from the date of such notice. 7.5. In case the listed company fails to redress the grievances and/or pay fine levied within 15 days from the date of such notice, the concerned DSE shall issue notices to the promoter(s) of such listed company, to ensure submission of ATRs on the pending complaints and payment of fines by the listed company within 10 days from the date of such notice. 7.6. 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 promoter(s) in such listed company as well as all other securities held in the demat account of the promoter(s). 7.7. The depository(ies) shall immediately freeze such demat accounts and also intimate the promoter(s) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racy in the redressal of grievance, the investor may lodge the Complaint against any Entity on SCORES within a period of one year from the date of occurrence of the cause of action, where: 3.1. The complainant has approached the Entity for redressal of the complaint and the Entity has rejected the complaint or the complainant has not received any communication from the concerned Entity; or 3.2. The complainant is not satisfied with the reply received or the redressal by the concerned Entity. 4. If any complaint filed on SCORES beyond the limitation period specified above, SEBI may reject such complaint. 5. The following types of complaints shall not be dealt through SCORES: 5.1. Complaints against companies which are unlisted/delisted and companies on Dissemination Board of Stock Exchanges (except complaints on valuation of securities). 5.2. Complaints relating to cases pending in a court or subject matter of quasi-judicial proceedings, matters pending with Online Dispute Resolution of SEBI etc. 5.3. Complaints falling under the purview of other regulatory bodies such as Reserve Bank of India, (RBI), Insurance Regulatory and Development Authority of India (IR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1992 9(a)(1)(c); 28C 3. Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,1993 9(a)(1)(e); 15C 4. Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993 9(A)(1)(c); 14B 5. Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994 8(A)(1)(d); 16B 6. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 60A 7. Securities and Exchange Board of India (Collective Investment Scheme) Regulations, 1999 11(F); 14B 8. SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 7C; 11(3)(r); 11A 9. Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011 16C 10. Securities an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Association of Portfolio Managers in India (APMI) 8 Mutual Funds Association of Mutual Funds in India (AMFI) 9 Depository Participants Depositories 10 Investment Advisers BSE Administration Supervision Ltd. (BASL) 11 Registrars to an Issue and Share Transfer Agents Stock Exchanges 12 Stock Brokers Stock Exchanges 13 Vault Managers Depositories Schedule III (To SEBI/HO/OIAE/IGRD/CIR/P/2023/156 dated September 20, 2023) Schedule IV (To SEBI/HO/OIAE/IGRD/CIR/P/2023/156 dated September 20, 2023) A. Name of the Designated Body: ____________________________________________________________ B. Registered Office Address: _____________________________________________________ Identification Number (PAN or specify) : __________________________________ D. Date of incorporation : _________________ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complaints and actions in case of non-compliances Sr. No. Activity No of calendar days 1. Complaint handling: a. Complaint received in SCORES by the listed company T 2. Action in case of non-compliances: a. Notice to Listed company intimating the fine @ ₹ 1000/- per day, per complaint to be levied for not resolving the complaints within 60 days T+61 b. Notice to Promoters for non-resolution of complaints and nonpayment of fine to the stock exchange. T+76 c. Freezing of promoter s shareholdings (i.e. entire shareholding of the promoter(s) in listed company as well as all other securities held in the demat account of the promoter(s)) in demat account. T+86 d. Stock exchanges may take any other actions, as deemed appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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