Market regulator SEBI on Monday asked stock exchanges and depositors to launch their own online grievance redressal system within six months.
It is compatible with the online platform, SCORES, which was launched by the capital market regulator in June 2011 to help investors file complaints about securities markets against listed companies and SEBI-registered intermediaries. The online redressal system will enable investors to lodge their grievances online and track the status of redressal of such grievances, SEBI said.
“All recognized stock exchanges, including Commodity Derivatives Exchange / Depository, are advised to design and implement their own online web-based grievance redressal system, which will enable investors to file grievances and raise grievances for redress through grievance redressal committee (GRC), arbitration. Will 6 , Appellate arbitrators etc. as per their respective bye-laws, rules and regulations, ”SEBI said in a circular.
It said the redressal mechanism would be implemented within six months. The new system is designed to expedite the disposal of investors’ grievances as it will also avoid the need for physical movement of grievances.
Further, the possibility of loss, damage or misdirection of physical complaint will be avoided. This will facilitate easy recovery and tracking of complaints at any time.
SEBI said the system should be web-enabled and provide 24-hour online access. Listing the features of the new system, the regulator said complaints and reminders are filed online anytime, anywhere. Further, an email is created immediately acknowledging receipt of the complaint and assigning a unique registration number for future reference and tracking.
There should also be a system to link the system with the score. SEBI has also asked stock exchanges to conduct hybrid mode – online and offline – GRC and arbitration or appeal arbitration process. Also, depositories have to follow hybrid mode.
During the Kovid-19 epidemic, stock exchanges were advised to conduct online GRC and arbitration or appeal arbitration hearings for speedy disposal of grievances. The online process saves the time and cost of the parties involved which is in the interest of the investors.
All stock exchanges and depositories have been asked to widely promote its online web-based grievance redressal system.
Further, the regulator has changed the amount of money deposited by the investor when applying for arbitration. “A client who has a claim / counter claim up to Rs 20 lakh and files an arbitration reference will be exempted from paying the fee,” SEBI said.
If the dispute involves a claim of less than or equal to Rs. 20 lakhs, the investor, applicant or respondent will be exempted from paying the fee for the cost of arbitration and the exchange will bear the same on behalf of the investor. Earlier, the demand limit was up to Rs 10 lakh.