Investor Grievance Redress Mechanism - New Policy Measures

CIRCULAR
SEBI/HO/OIAE/IGRD/CIR/P/2018/58
March 26, 2018
To
All Investor Associations recognized by SEBI
All Companies whose securities are listed on SEBI recognized Stock Exchanges (Through the Stock Exchanges) All recognized Stock Exchanges All Depositories All Registered Registrars to an Issue and Share Transfer Agents All Registered Merchant Bankers Association of Mutual Funds in India (AMFI) All Intermediaries registered with SEBI (Through the Stock Exchanges for Stock Brokers and Sub Brokers, Depositories for Depository Participants, AMFI for Mutual Funds and Asset Management Companies) Dear Sir/Madam, Subject: Investor grievance redress mechanism – new policy measures

1. This circular is being issued in continuation to SEBI circular no. CIR/OIAE/1/2014 dated 18 th
   December, 2014 regarding redressal of investor grievances through SEBI Complaints Redress System (SCORES) platform.
2. SCORES is a web based centralized system to capture investor complaints against listed
   companies and registered intermediaries and is available 24x7. It was introduced on June 8, 2011 and has been facilitating redressal of investor grievances in a speedy manner.
3. SEBI encourages investors to lodge complaints through electronic mode in SCORES.
   However, complaints received from investors in physical form are also digitized by SEBI and uploaded in SCORES. Thereafter, follow-up actions of the complaint are done in electronic form only i.e. through SCORES. Investors can easily access, retrieve and preserve the complaints lodged by them in electronic mode. Further, it enhances the turnaround time and speed of redressal of a complaint.
4. Investors may contact the Investor Associations (IAs) recognized by SEBI for any assistance
   in filing complaints on SCORES. The lists of Investor Associations are available on SEBI website (www.sebi.gov.in). Investors may also seek assistance in filing complaints on SCORES from SEBIs toll free helpline number 1800 266 7575 or 1800 22 7575.
5. SEBI has received inputs from listed companies and intermediaries that investor grievances
   can be resolved faster if the grievance been taken up directly with the entity at the first instance. Accordingly, it appears to be prudent and time saving if the investors approach the concerned listed company or registered intermediary first with all the requisite details to

redress the complaints. In case, the listed company or registered intermediary fails to redress the complaint to the investor’s satisfaction, the investor may file a complaint in SCORES.
6. At present following types of complaints are not dealt through SCORES:
i. Complaints against the companies which are unlisted/delisted, in dissemination
board of Stock Exchanges,
ii. Complaints those are sub-judice i.e. relating to cases which are under consideration
by court of law, quasi-judicial proceedings etc.
iii. Complaints falling under the purview of other regulatory bodies viz. RBI, IRDAI,
PFRDA, CCI, etc., or under the purview of other ministries viz., MCA, etc.
iv. Complaints against a sick company or a company where a moratorium order is
passed in winding up / insolvency proceedings.
v. Complaints against the companies where the name of company is struck off from
RoC or a vanishing company as per list published by MCA.
vi. Suspended companies, companies under liquidation / BIFR / etc.
7. To enhance investor satisfaction on complaint redressal, SEBI has already put in place a
‘Complaint Review facility’ under SCORES wherein an investor if unsatisfied with the redressal may within 15 days from the date of closure of his complaint in SCORES opt for review of the complaint and the complaint shall be escalated
8. Effective from August 01, 2018, following procedure shall be followed for filing and redressal
of investor grievances using SCORES:
a. Investors who wish to lodge a complaint on SCORES are requested to register themselves on www.scores.gov.in by clicking on “Register here”. While filing the registration form, details like Name of the investor, PAN, Contact details, Email id, Aadhaar card number(optional), CKYC ID(optional) etc. (Annexure A) may be provided for effective communication and speedy redressal of the grievances. Upon successful registration, a unique user id and a password shall be communicated to the investor through an acknowledgement email / SMS. b. An investor shall use login credentials for lodging complaint on SCORES (“Login for registered user” section). Details on how to lodge a complaint on SCORES is at Annexure B.
c. The complainant may use SCORES to submit the grievance directly to
companies / intermediaries and the complaint shall be forwarded to the entity for resolution. The entity is required to redress the grievance within 30 days, failing which the complaint shall be registered in SCORES d. Presently, the limitation period for filing an arbitration reference with stock exchanges is three year. In line with the same and in order to enhance ease, speed & accuracy in redressal of investor grievance, the investor may lodge a complaint on SCORES within three years from the date of cause of complaint, where;

Investor has approached the listed company or registered intermediary for redressal of the complaint and, The concerned listed company or registered intermediary rejected the complaint or, The complainant does not receive any communication from the listed company or intermediary concerned or, The complainant is not satisfied with the reply given to him or redressal action taken by the listed company or an intermediary.
9. Stock Exchanges, Depositories and the Association of Mutual Funds of India (AMFI) are
accordingly advised to bring the provisions of this Circular to the notice of all Listed Companies, registered Stock-Brokers, Depository Participants and Asset Management Companies respectively and also to disseminate the same on their websites. Further, Stock Exchanges, Depositories and AMFI should also arrange for adequate publicity of this Circular on an urgent basis. 10.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. 11.This Circular is available on SEBI website at www.sebi.gov.in under the category “Legal /Circulars”.

Yours faithfully,
Medha Sonparote
Deputy General Manager
Office of Investor Assistance and Education

Annexure A
Details to be provided while registering on SCORES with effect from August 01, 2018:
i. Name of the complainant*
ii. Pan Number*
iii. Aadhaar Number (Optional)
iv. CKYC ID (Optional)
v. DP id & Client Id
vi. Postal address for communication*
vii. Contact number – Mobile* : Landline
viii. Email id* – For receipt of acknowledgement letter / updates of complaints on SCORES.
ix. Bank account details – To facilitate direct credit of benefits to investor.
x. Client id as given by Broker / Stock Exchange.
Note: * are mandatory fields.

Annexure B
How to lodge a complaint on SCORES with effect from August 01, 2018.
SCORES Portal http://www.scores.gov.in/
CLICK
CLICK
User Registration
(Under “Register Here”)
Details like Period of cause of event, Date of grievance taken up with the entity, address of direct complaint to the entity, Share certificate number / folio number etc. Enter TYPE Complaint details in brief (1000 charcters) CLICK Upload supporting documents (upto 2 MB in PDF format) Character shown in image Complaint Registration Number is generated and sent to email id and to mobile number of the complainant. Add Submit CLICK Login to SCORES and Click on “Complaint Registration” Press submit to complete the registration. An Email/ SMS informing User ID and Password will be sent to investor. (As per nature of complaint) Enter