Sebi sets guidelines for handling complaints

Capital markets regulator Sebi has come out with a framework for handling complaints received through SCORES platform for registered entities and for monitoring such grievances by designated bodies.

The new guidelines will come into force from December 4, the Securities and Exchange Board of India (Sebi) said in a circular. SCORES is a grievance redressal system that was launched in June 2011. Investors can lodge their complaints online with Sebi, pertaining to the securities market, against companies, intermediaries and market infrastructure institutions. Under the guidelines, all entities including companies that received complaints of investors through SCORES, will have to resolve them within 21 calendar days of receipt of such grievances. The complaint lodged on SCORES against any entity will be automatically forwarded to the concerned entity through SCORES for resolution and submission of ATR (Action Taken Report). Further, the complaint against the entity will be simultaneously forwarded through SCORES to the relevant designated body.

Designated body for listed companies will be stock exchanges and for mutual funds it will be Association of Mutual Funds in India (AMFI). In case the complainant is satisfied with the resolution provided by the entity or the complainant does not choose to review the complaint, such grievance will be disposed on SCORES. However, if the complainant is not satisfied, the complainant may request for a review of the resolution provided by the entity within 15 calendar days from the date of the ATR.

Also, 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. Sebi or the designated body may seek clarification on the ATR submitted by the concerned entity.