Investor Grievance Redressal Mechanism
Summary
This circular clarifies the Investor Grievance Redressal Mechanism for Stock Exchanges, mandating complaint resolution within 15 working days. It outlines the roles of Stock Exchanges and the Investor Grievance Redressal Committee (IGRC) in handling service-related and financial loss complaints. The document also establishes arbitration procedures for unresolved disputes and requires exchanges to amend bye-laws and report implementation status.
Text
Stock Exchange shall ensure that the investor complaints shall be resolved within 15 working days from the date of receipt of the complaint. Additional information, if any, required from the complainant, shall be sought within 7 working days from the date of receipt of the complaint. The period of 15 working days shall be counted from the date of receipt of additional information sought.
Stock Exchange shall resolve service related complaints at its end. However, in case the complainant is not satisfied with the resolution, the same may be referred to the Investor Grievance Redressal Committee (“IGRC”), after recording the reasons in writing by the Chief Regulatory Officer of the Stock Exchange or any other officer of the Stock Exchange authorized in this behalf by the Managing Director.
For Complaints related to trade, settlement and ‘deficiency in services’, resulting into any financial loss... if complaint is not resolved amicably, the same shall be referred to the IGRC, after recording the reasons in writing by the Chief Regulatory Officer of the Stock Exchange or any other officer of the Stock Exchange authorized in this behalf by the Managing Director.
IGRC shall have a time of 15 working days to amicably resolve the investor complaint through conciliation process. If IGRC needs additional information... the timeline for resolution of the complaint by IGRC shall not exceed 30 working days.
IGRC shall not dispose the complaint citing “Lack of Information and complexity of the case”. The IGRC shall give its recommendation to Stock Exchange.
IGRC shall decide claim value admissible to the complainant, upon conclusion of the proceedings of IGRC. In case claim is admissible to the complainant, Stock Exchanges shall block the admissible claim value from the deposit of the member as specified in this regard.
Expenses of IGRC shall be borne by the respective Stock Exchange and no fees shall be charged to the complainant/member.
The Stock Exchange shall organize regular training program for IGRC members in consultation with National Institute of Securities Markets (“NISM”). The cost of such program shall be borne by Investor Service Fund (“ISF”) of the Stock Exchange.
For any dispute between the member and the client relating to or arising out of the transactions in Stock Exchange, which is of civil nature, the complainant/ member shall first refer the complaint to the IGRC and/ or to arbitration mechanism provided by the Stock Exchange before resorting to other remedies available under any other law.
A complainant/member, who is not satisfied with the recommendation of the IGRC, shall avail the arbitration mechanism of the Stock Exchange for settlement of complaints within six months from the date of IGRC recommendation.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately;
bring the provisions of this circular to the notice of the members of the stock exchange and also to disseminate the same through their website;
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Source: SecMarx — Investor Grievance Redressal Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.