Sebi on Monday issued a master circular on the redressal of investor grievances through the SCORES platform and said the option of one-time review is available in case the complainant is not satisfied with the grievance resolution.SCORES or Sebi Complaints Redress System platform was launched in June 2011.In the circular, the watchdog said that in order to enhance ease, speed and accuracy in the redressal of grievance, the complaint shall be lodged on SCORES within one year from the date of cause of action, subject to certain conditions.
The conditions would be that the complainant has approached the listed company or registered intermediary/ MII (Market Infrastructure Institutions) for redressal of the complaint or the complaint has been rejected.Other conditions include that the complainant has not received any communication from the concerned listed company or the registered intermediary/ MII or, the complainant is not satisfied with the reply received or the redressal action taken.According to Sebi, it reserves the right to reject a complaint lodged on SCORES, if the date of cause of action is more than one-year-old and/or the complainant has not taken up the complaint with the concerned entity prior to the said date.
“To enhance investor satisfaction on complaint redressal, a one-time ‘review’ option is also available under SCORES wherein a complainant, if not satisfied with the extent of redressal of grievance by the concerned listed company/ intermediary/ MII, opts for review of the extent of the redressal, within 15 days from the date of closure of the complaint on SCORES.”Thereafter, the complaint shall be escalated to the supervising official of the dealing officer of Sebi,” the circular said.
Among others, Sebi said that a complaint would be treated as resolved/disposed/ closed only when it disposes/closes the complaint in SCORES.”Hence, mere filing of ATR (Action Taken Report) by a listed company or intermediary or MII with respect to a complaint will not mean that the complaint is not pending,” it noted.In terms of handling of complaints, the listed company concerned should respond within T+30 days and if there is no respone within that period then the listed company would be alerted. Further, response has to be obtained in T+60 days.
‘T’ refers to the day complaint is received in SCORES by the listed company.For non-compliance, the stock exchange can issue notice to the listed company concerned intimating about a fine of Rs 1,000 per day per complaint. In case, there is no resolution of complaints and non-payment of fine to the stock exchange within T+61 days, then notice would be issued to the promoters concerned, as per the circular.Also, promoters’ shareholdings can be frozen in case there is no resolution after T+86 days.
“Once stock exchange has exhausted all options and yet the number of pending complaints exceed 20 or the value involved is more than Rs 10 lakh, the exchange (has) to forward the details of such listed companies to Sebi for further action, if any,” the circular said.