SEBI, vide its Circular dated 04th July, 2022 asks Stock Exchanges and Depositories to launch online complaint redressal system to enable investors to lodge and follow up their complaints and track the status of redressal of such complaints.
The new system is intended to expedite redressal / disposal of investors’ complaints as it would also obviate the need for physical movement of complaints. Further, possibility of loss, damage or misdirection of the physical complaints would be avoided. It would also facilitate easy retrieval and tracking of complaints at any time.
It is to be noted that this is in line with SCORES which was launched in 2011 by SEBI to help investors lodge their complaints pertaining to security market, against listed companies and SEBI registered intermediaries.
SEBI further added that all recognized stock exchanges including commodity derivatives exchanges / depositories are advised to design and implement an online web-based complaints redressal system of their own, which will facilitate investors to file complaints and escalate complaints for redressal through Grievance Redressal Committee (GRC), arbitration, appellate arbitration etc. in accordance with their respective byelaws, rules and regulations.
SEBI said that the redressal mechanism shall be implemented within 6 months.
Hybrid Mode of Conducting GRC and Arbitration / Appellate Arbitration :
During the Covid-19 pandemic, stock exchanges were advised to conduct GRC and arbitration or appellate arbitration hearings online for faster redressal of complaints. The online process saves time and cost of the parties involved which is in the interest of investors.
SEBI decided that stock exchanges and depositories shall continue with hybrid mode of conducting GRC and arbitration or appellate arbitration process.
Amendment to Clause 1.J.(iii) Speeding up grievance redressal mechanism of SEBI Circular dated 23rd February, 2017:
“(iii) A client, who has a claim / counter claim upto Rs. 20 lakh (Rs. Twenty lakh) and files arbitration reference, will be exempted from payment of the fees specified in Clause 1.J.(i).”
If the dispute involves a claim amount less than or equal to Rs 20 lakh, then the investor, either applicant or respondent, is exempted from payment of fees towards cost of arbitration and the exchange will bear the same on behalf of the investor. Earlier, it was Rs. 10 Lakh.
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