2023-09-20
Added
The circular revises the investor grievance redressal process on the SEBI Complaint Redressal (SCORES) platform, mandating that all listed companies, registered intermediaries and market infrastructure institutions submit an Action Taken Report (ATR) within 21 calendar days of receiving a complaint and introducing automatic routing of complaints to both the concerned entity and the appropriate Designated Body. It requires Designated Bodies listed in Schedule II to obtain SCORES authentication and, where desired, API integration by 4 December 2023 and obliges them to monitor ATR submissions, issue advisories or take non‑enforcement actions, and report to the exchanges; the provisions become effective on 4 December 2023. The circular also authorises Designated Stock Exchanges to levy a fine of ₹1,000 per day per unresolved complaint on listed companies (with escalation to promoter account freezing if fines are not paid within 15 days of notice) and directs that complaints exceeding 20 in number or involving amounts over ₹10 lakhs be forwarded to SEBI for further action.
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CIRCULAR
SEBI/HO/OIAE/IGRD/CIR/P/2023/156
September 20, 2023
To,
All Recognized Stock Exchanges (including Commodity Exchanges) All Depositories All Listed Companies All SEBI Registered Intermediaries Association of Investment Bankers of India Association of Mutual Funds in India Association of Portfolio Managers in India BSE Administration & Supervision Ltd. Indian REITs Association Trustees Association of India Dear Sir/Madam, Subject: Redressal of investor grievances through the SEBI Complaint Redressal (SCORES) Platform and linking it to Online Dispute Resolution platform.
SEBI Complaint Redressal System (SCORES) is a centralised web based complaint
redressal facilitation platform launched in 2011 vide circular dated June 3, 2011 (bearing reference number CIR/OIAE/2/2011) to provide a facilitative platform for the benefit of the aggrieved investors, whose grievances against (a) listed company, (b) registered intermediary or (c) market infrastructure institution (“Entities”) remain unresolved. Since then, SEBI has revised and strengthened the process of facilitating the redressal of grievances by such Entities. Currently, the process of investor grievances redressal on SCORES is governed by the Master Circular dated November 07, 2022 on “Processing of investor complaints against listed companies in SEBI Complaints Redress System – SCORES” (bearing reference SEBI/HO/OIAE/IGRD/P/CIR/2022 /0150).
In order to strengthen the existing investor grievance handling mechanism through
SCORES by making the entire redressal process of grievances in the securities market comprehensive by providing a solution that makes the process more efficient by reducing timelines and by introducing auto-routing and auto-escalation of complaint, SEBI notified the Securities and Exchange Board of India (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023 and amended the regulations as mentioned under ‘Schedule I’ vide notification dated August 16, 2023. Consequently, it becomes necessary to revise the extant process for redressal of investors’ grievances against Entities and provide for a mechanism through which Designated Bodies (as specified in ‘Schedule II’) may monitor the process of the redressal of investors’ grievances by Entities.
The revised framework for handling of complaints received through SCORES platform for
Entities and for monitoring the complaints by designated bodies is specified in ‘Annexure I’ to this circular. A pictographic representation of the process is also set out in ‘Schedule III’.
The other general provisions applicable to all Entities concerning SCORES portal are at
‘Annexure II’.
Implementation of this circular:
5.1. Notwithstanding anything contained in this circular or any other circular, the
Entities shall, submit the Action Taken Report (“ATR”) on SCORES within 21 calendar days from the date of receipt of the complaint.
5.2. The provisions of this circular related to work flow of processing of investor
grievances by Entities and framework for monitoring and handling of investor complaints by the Designated Bodies shall come into force with effect from December 04, 2023.
5.3. The designated bodies referred to in the Schedule II (“Designated Bodies”) may
apply for SCORES Authentication and/or for Application Programming Interface (API) integration as per Annexure I within such period so as to ensure that Designated Bodies can comply with provisions of this circular by December 04, 2023 and onwards.
This Circular shall rescind the Master Circular SEBI/HO/OIAE/IGRD/P/CIR/2022/0150
dated November 07, 2022 above with effect from December 04, 2023.
Notwithstanding such rescission,
7.1. anything done or any action taken or purported to have been done or taken under
the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Circular;
7.2. the previous operation of the rescinded circulars or anything duly done or suffered
thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violation committed against the rescinded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded circulars has never been rescinded.
All the Entities and Designated Bodies shall comply with this Circular. Market Infrastructure
Institutions and Designated Bodies shall bring the provisions of this Circular to the notice of all listed companies and registered intermediaries, and disseminate the same on their respective websites.
This Circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
This Circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Vandana Rajesh Kumar
Deputy General Manager
Investor Grievance Redressal Division
Office of Investor Assistance and Education Tel No. 022 26449646 Email id - vandanak@sebi.gov.in
Annexure I
Framework for handling of investor grievances received through SCORES by Entities and monitoring of the redressal process by designated bodies.
revised ATR to the complainant on SCORES within 10 calendar days of the review sought.
2.4. The Designated Bodies shall be responsible for:
2.4.1. Monitoring and handling grievance redressal of investors against
respective entities under their domain as stipulated under Schedule II.
2.4.2. Taking non-enforcement actions including issuing advisories, caution
letters for non-redressal of investor grievances and referring to SEBI for enforcement actions.
3. Second Review of the Complaint:
3.1. The complainant may seek a second review of the Complaint within 15 calendar
days from the date of the submission of the ATR by the Designated Body. In case the complainant is satisfied with the ATR provided by the concerned Designated Body or complainant does not choose to review the Complaint within the period of 15 calendar days, the Complaint shall be disposed on SCORES.
3.2. In case the complainant is not satisfied with the ATR provided by the
Designated Body or the concerned Designated Body has not submitted the ATR within 10 calendar days, SEBI may take cognizance of the Complaint for second review through SCORES.
3.3. SEBI may take up the review with stakeholders involved, including the
concerned entity or/and Designated Body. The concerned entity or/and Designated Body shall take immediate action on receipt of second review complaint from SEBI and submit revised ATR to SEBI through SCORES, within the timeline specified by SEBI.
3.4. SEBI or the Designated Body (as the case may be) may seek clarification on
the ATR submitted by the concerned entity for SEBI review complaint. The concerned entity shall provide clarification to the respective Designated Body and/or SEBI, wherever sought and within such timeline as specified. The second review Complaint shall be treated as ‘resolved’ or ‘disposed’ or ‘closed’ only when SEBI ‘disposes’ or ‘closes’ the Complaint in SCORES. Hence, mere filing of ATR with respect to SEBI review complaint will not mean that the SEBI review complaint is disposed.
4. SCORES authentication for registered intermediaries and market infrastructure
institutions:
4.1. The procedure for generation of SCORES user ID and password is fully
automated for all SEBI registered intermediaries and MIIs registered or recognised by SEBI after August 02, 2019. SCORES user ID and password details shall be sent through auto-generated e-mails, upon completion of process of online grant of registration by SEBI.
4.2. The SCORES user ID and password details shall be sent to the e-mail ID of the
Contact Person or the Compliance Officer as provided in the online Registration Form (submitted through the SEBI Intermediaries Portal – https://siportal.sebi.gov.in).
4.3. Stock Brokers and Depository Participants shall also obtain SCORES
authentication. The procedure for obtaining SCORES authentication shall be as may be specified.
5. SCORES authentication for companies intending to list their securities on
recognized stock exchanges:
5.1. All companies intending to get their securities listed on the recognized stock
exchanges shall obtain SCORES authentication through the online mechanism available at the SCORES website www.scores.gov.in.
5.2. The companies shall be required to apply for the authentication through the
online form available on the abovementioned SCORES website in accordance with the instruction document provided on the website.
5.3. Companies shall attach a declaration, with the online form, on the letter head
of the company signed by the Compliance Officer, as under:
5.3.1. Companies intending to list on Main Board: A declaration that the Draft
Red Herring Prospectus has been submitted to SEBI.
5.3.2. Companies intending to list on SME/Debt Platform of stock exchange:
A declaration that an application to list its securities has been submitted with the stock exchange/in-principal approval to list its securities has been obtained from the stock exchange.
5.4. The SCORES credentials shall be sent to the e-mail ID of the Compliance
Officer or the Dealing Officer as provided in the online form.
5.5. Complaints against listed companies can be processed by companies in-house
or through its Registrar to Issue and Share Transfer Agent (RTI/STA). In case the complaints are processed by the RTI/STA on behalf of the listed company, any failure on the part of the RTI/STA to redress the complaint or failure to update Action Taken Report (ATR) in SCORES, will be treated as failure of the listed company to furnish information to SEBI and non redressal of investor complaints by the listed company.
5.6. The Entities can update their primary e-mail address in SCORES where all
notifications related to SCORES complaints are sent.
6. Access to SCORES Portal and other requirements applicable to Designated
Bodies:
6.1. The Designated Bodies shall take SCORES Authentication from SEBI. The
Designated Bodies shall fill the form placed at Schedule IV and submit the same to scores@sebi.gov.in. The SCORES user id and password details shall be sent to the e-mail id provided in the Registration Form.
6.2. The Designated Bodies shall provide generic e-mail id for the purpose of
obtaining SCORES authentication. Further the Designated Bodies shall appoint one nodal officer for the purpose. The details of the nodal officer shall be updated with SEBI, through SCORES or/and through e-mail intimation.
6.3. The Designated bodies who already have a complaint redressal portal of their
own and desires to integrate it to SCORES through Application Programming Interface (API) shall write to SEBI at scores@sebi.gov.in for the same. It may be noted that SCORES Authentication is mandatory for all the Designated Bodies even though integrated to SCORES through API.
6.4. The Designated Bodies shall have adequate infrastructure/systems in place like
manpower etc. to comply with the requirements and process laid down in this circular.
6.5. The Designated Bodies shall have adequate systems in place to curb leakage
of any data received through SCORES.
6.6. The Designated Bodies shall maintain Management Information Systems (MIS)
reports, which shall be shared with the concerned entities so the latter can adequately track timelines for submission of ATR. SEBI may also require the Designated Bodies to furnish MIS reports in such form and on such periodicity as it may specify from time to time.
6.7. SEBI may appoint or remove any Designated Body for various class of
registered intermediaries from time to time.
7. Action for failure to redress investor complaints by listed companies:
7.1. The procedure and actions mentioned below shall only be applicable for
categories of complaints placed at Schedule V.
7.2. The Designated Stock Exchange (DSE) shall levy a fine of ₹ 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 January 22, 2020.
7.3. Fines shall also be levied on companies, which are suspended from trading on
the stock exchanges.
7.4. DSE shall issue a notice intimating the listed company about the levy of fines
while also directing it to submit ATRs on the pending complaints and payment of the fines within 15 days from the date of such notice.
7.5. In case the listed company fails to redress the grievances and/or pay fine levied
within 15 days from the date of such notice, the concerned DSE shall issue notices to the promoter(s) of such listed company, to ensure submission of ATRs on the pending complaints and payment of fines by the listed company within 10 days from the date of such notice.
7.6. In case the listed entity fails to comply with the aforesaid requirement and/ or
pay fine levied within the stipulated period as per the notices, the DSE shall forthwith intimate the depositories to freeze the entire shareholding of the promoter(s) in such listed company as well as all other securities held in the demat account of the promoter(s).
7.7. The depository(ies) shall immediately freeze such demat accounts and also
intimate the promoter(s) about the details of non-compliances resulting in freezing of their demat accounts.
7.8. In case the listed entity fails to pay the fine or resolve the complaint despite
receipt of the notice as stated above, the DSE may initiate other action as deemed appropriate.
7.9. While issuing the aforementioned notices, the DSE shall also send intimation
to other recognized stock exchange(s) where the shares of such company are listed.
7.10. The fine shall be computed and levied on a monthly basis during the noncompliance period.
7.11. Amount of fine shall continue to accrue till the date of filing of ATR to the effect
of redressal of grievance by the company or till the company is compulsorily delisted, whichever is earlier.
7.12. Upon exhaustion of all options as mentioned hereinabove, and if the number of
pending complaints exceed 20 or the value involved in such complaints is more than ₹ 10 lakhs, stock exchanges shall forward all the complaints against such listed companies to SEBI for further action, if any.
7.13. Stock exchanges may deviate from the above procedure and actions, if found
necessary, only after recording reasons in writing.
7.14. Stock exchanges shall intimate SEBI through SCORES about all actions taken
against the listed company for non-resolution of the complaints and nonpayment of fines.
7.15. The time-line the actions to be taken by stock exchanges for non-resolution of
investor grievances is provided in Schedule VI.
Annexure II
General provisions regarding investor grievance redressal
5.7. Complaints which are in the nature of market intelligence i.e., information given
to SEBI regarding violation of any of the provisions of the securities laws.
6. Notwithstanding anything specified in this circular, SEBI shall handle the first review
complaint for categories of intermediaries where no Designated Body has been appointed for the purpose.
7. The complainant in the event of being dissatisfied shall give reasons for not being
satisfied with the ATR and provide clear reasons for review at any stage.
8. SCORES shall only be a facilitative platform for investors to get redressal of their
grievances from the concerned entity.
9. In cases where investors raise issues, which require adjudication on any third party
rights, on questions of law or fact or which is in the nature of a lis between parties, or if investors are not satisfied with disposal on SCORES post SEBI review, they shall seek appropriate remedies through the Online Dispute Resolution mechanism in securities market. In addition, investors have the option to approach legal forums including civil courts, consumer courts etc.
10. Investors can approach the Online Dispute Resolution mechanism or other appropriate
civil remedies at any point of time. In case the complainant opts for Online Dispute Resolution mechanism or other appropriate civil remedies while the complaint is pending on SCORES, the complaint shall be treated as disposed on SCORES.
Schedule I
S.no Regulations Clauses
Schedule II
Sr.
No. Intermediary Name of the Designated Body 1 Listed companies Stock Exchanges 2 Merchant Bankers Association of Investment Bankers of India (AIBI) 3 Bankers to an Issue Association of Investment Bankers of India (AIBI) 4 Real Estate Investment Trusts Indian REITs Association 5 Municipal Debt Securities Stock Exchanges 6 Debenture Trustees Trustees Association of India 7 Portfolio Managers Association of Portfolio Managers in India (APMI) 8 Mutual Funds Association of Mutual Funds in India (AMFI) 9 Depository Participants Depositories 10 Investment Advisers BSE Administration & Supervision Ltd. (BASL) 11 Registrars to an Issue and Share Transfer Agents Stock Exchanges 12 Stock Brokers Stock Exchanges 13 Vault Managers Depositories
Schedule III
Schedule IV
A. Name of the Designated Body:
_______________________________________________________________________ B. Registered Office Address:
C. Identification Number (PAN or specify)
_______________________________________________________________ D. Date of incorporation: ____________________________________________ E. SCORES Details:
I. E-mail ID (For the purpose of SCORES Authentication)
II. Phone Number: ___________________________________
III. Mobile Number (Optional): ___________________________
F. Nodal Officer Details:
I. Name: __________________________________________
II. Designation: _____________________________________
III. Mobile Number: __________________________________
IV. E-mail ID: _______________________________________
V. Phone Number (Optional): __________________________
Schedule V
Schedule VI
Timelines for handling of complaints and actions in case of non-compliances Sr. No. Activity No of calendar days
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This document supersedes: Master Circular on the redressal of investor grievances through the SEBI Complaints Redress System (SCORES) platform
Source: Securities and Exchange Board of India — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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