On 04-07-2022, Securities and Exchange Board of India (‘SEBI') issued a circular on Investor Grievance Mechanism also amending its circular dated 23-02-2017 to protect the interests of investors in securities market and to promote the development and regulate the securities market.
SEBI Complaints Redressal System (‘SCORES'):
Key Points:
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An online web complaint redressal system designed to facilitate investors lodging their complaints and escalate them for Redressal through Grievance Redressal Committee (‘GRC') against the listed companies/ registered intermediaries. Investors can also follow up their complaints from anywhere. The Annexure contains salient features of the system which must be web enabled and provide 24*7 access.
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GRC must be implemented within 6 months from the issuance of this circular by all recognized stock exchanges including commodity derivatives exchanges/ depositories by designing and implementing SCORES.
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SCORES aims to expedite redressal and disposal of complaints.
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All recognized stock exchanges including commodity derivatives exchanges/ depositories must publicize its online web-based complaints redressal system.
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HYBRID MODE: it started during the COVID pandemic, and it has been decided that it must be continued of conducting GRC and arbitration/ appellate arbitration process.
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Amendment to SEBI circular dated 23-02-2017:
Clause 1 (J) (iii): Speeding up grievance redressal mechanism: Earlier a client who claimed or counter claimed up to Rs. 10 lakh and filed arbitration reference was exempted from filing the deposit. Now, the amount has been raised up to Rs. 20 lakh.
