SEBI vide its Master Circular dated 07th November, 2022 made it mandatory for investors to first take up their grievances for redressal with the entity concerned, through their designated persons/officials who handle issues relating to compliance and redressal of investor grievances. In case, the entity concerned fails to redress the complaint within the timeline provided herein, the investor may then file their complaint in SCORES.
Further, the complainant may use SCORES to submit the complaint or grievance directly to the listed companies / intermediaries / MIIs for resolution. Such a complaint is called a “Direct Complaint” and shall be redressed by the entity within 30 days without any intervention of SEBI, failing which the complaint shall be registered on SCORES. Thereafter, SEBI shall take it up with the entity concerned.
SEBI in the further circular added 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.
The condition where the complaint shall be lodged on SCORES within one year from the date of cause of action in cases where the complainant has approached the listed company or registered intermediary / MII, as the case may be, for redressal of the complaint and it has been rejected or no communication has been received or complainant is not satisfied with the reply received.
The circular further said that SEBI reserves its 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.
Further, in order 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.
Further, upon receipt of the complaint through SCORES, the Designated Stock Exchange (DSE) shall take up the complaint with the company. The company is required to redress the complaint and submit an ATR to DSE within 30 days from the date of receipt of such complaint.
In case the ATR is not submitted by the company within 30 days or the DSE is of the opinion that the complaint is not adequately redressed and the complaint remains pending beyond 30 days, a reminder shall be issued by the DSE to the listed company through SCORES, directing expeditious redressal of the grievance within another 30 days. On being adequately satisfied with the response of the company with respect to the complaint, the DSE shall submit an ATR to SEBI.
For any failure to redress investor grievances pending beyond 60 days by listed companies, DSE shall initiate appropriate action against the listed company as detailed below. DSE shall levy a fine of Rs. 1000 per day per complaint on the listed company for violation of Regulation 13 (1) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (LODR Regulations) read with SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/12 dated 22 January, 2020.
This circular is applicable to all Companies whose securities are listed on SEBI recognized Stock Exchanges (Through the Stock Exchanges), all Intermediaries registered with SEBI (Through the Stock Exchanges for Stock Brokers, Depositories for Depository Participants, AMFI for Mutual Funds and Asset Management Companies), all recognized Stock Exchanges, all Depositories Association of Mutual Funds in India (AMFI), all Investor Associations and all Investors.
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