Create Online Grievance Redressal System: Sebi

This is in line with the SCORES online platform launched by the capital markets regulator in June 2011 to help investors file their securities market-related complaints against listed companies and Sebi-registered intermediaries. The online redressal system will allow investors to file their complaints online and track the redressal status of such complaints, Sebi said.

“All recognized stock exchanges including commodity derivatives exchanges/depositories are advised to design and implement their own online web-based grievance redressal system which will facilitate investors to file grievances and escalate grievances for redress through a Grievance Redressal Committee (GRC), arbitration, appellate arbitration, etc. in accordance with their respective by-laws, rules and regulations,” Sebi said in a circular.

The compensation mechanism will be implemented within six months, the announcement said. The new system aims to speed up the redressal or disposal of investor complaints as it will also remove the need for physical movement of complaints.

In addition, the possibility of loss, damage or misdirection of physical complaints will be avoided. This would also facilitate easy retrieving and tracking of complaints at any time.

Sebi said the system should be network enabled and provide round-the-clock online access. Listing out the features of the new system, the regulator said complaints and reminders for it are filed online anytime from anywhere. Additionally, an email is instantly generated acknowledging receipt of the complaint and providing a unique registration number for future reference and tracking.

In addition, there should be a provision to link the online system with SCORES. Sebi has also asked stock exchanges to continue with the hybrid mode — online and offline — of conducting GRC and arbitration or appellate arbitration process. Also depositories will have to follow the hybrid regime.

During the Covid-19 pandemic, stock exchanges have been advised to conduct GRC and arbitration or appellate arbitration hearings online for faster disposal of complaints. The online process saves time and costs for the parties involved, which is in the interest of investors.

All stock exchanges and depositories have been asked to widely publicize their online web based grievance redressal system.

Further, the regulator has changed the amount in respect of the deposit to be made by the investor at the time of filing the arbitration application. “A customer who has a claim/counterclaim up to Rs 20 lakh and has filed a reference for arbitration will be exempted from paying the fees,” Sebi said.

If the dispute involves a claim amount less than or equal to Rs 20 lakh, then the investor, complainant or respondent, is exempted from paying any fees towards the cost of arbitration and the exchange will bear the same on behalf of the investor. Earlier, the claim limit was up to Rs 10 lakh.