Sebi has extended the deadline for submission of public comments on the proposal to strengthen the grievance redressal till January 27
To augment investor protection measures, the capital markets regulator, the Securities and Exchange Board of India (Sebi), last week extended the deadline for submission of public feedback on a proposal to strengthen the existing complaint redressal mechanism through an online process till January 27.
In its consultation paper, Sebi suggested measures to reinforce the existing market infrastructure institution, or MII-administered mediation and arbitration mechanism, by making it more accessible and effective. MIIs are stock and commodities exchanges and depositories.
Sebi's original deadline for public feedback was on January 9, 2023, after it uploaded the consultation paper on its website on December 19, 2022. In a recent update, Sebi said, "It has been decided to extend the timeline for submission of comments to January 27, 2023."
The suggestions include extending the MII-administered mediation and arbitration mechanism to resolve investor grievances against all specified securities market intermediaries. This was suggested to simplify, streamline, and make the process more efficient.
Keeping the well-being of retail investors in mind, Sebi has sought to speed up and enhance the accuracy of the grievance redressal process. In a circular on November 7, 2022, Sebi notified that "the complaint shall be lodged on SCORES within one year from the date of cause of action."
The notification said that it will reserve 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."
Additionally, to enhance investor satisfaction on complaint redressal, Sebi allowed a one-time ‘Review’ option to be 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.” After which, the complaint will be escalated to the supervising official of the dealing officer of SEBI, it said.
Sebi informed that if the listed company or the registered intermediary, MII, rejects the complaint or the complainant has not received any communication or is not satisfied with the reply, the investor can take it up with Sebi.
Sebi further noted that “investor grievances may be resolved faster if these grievances are taken up directly with the entity concerned at the first instance. Accordingly, it is now mandatory for investors to first take up their grievances for redressal with the entity concerned through their designated persons/officials who handle compliance and redressal of investor grievances.”