Investor grievances redressal mechanism – Handling of SCORES complaints by stock exchanges and Standard Operating Procedure for non-redressal of grievances by listed companies.
Summary
This circular establishes a standard operating procedure for stock exchanges to handle investor grievances via the SCORES platform and outlines actions against listed companies for non-redressal. It mandates that stock exchanges levy daily fines on non-compliant entities and freeze promoter shareholdings if complaints remain unresolved or fines are unpaid. The document specifies timelines for complaint resolution, escalation to SEBI, and the conditions under which penalties cease or accounts are unfrozen. This section outlines the specific timelines for handling investor complaints and enforcing actions against non-compliant listed companies. It defines the scope of applicable complaint types while explicitly excluding grievances related to other regulatory authorities like MCA, PFRDA, or CCI. The document details a progressive escalation process involving reminders, fines, and share freezing before referring severe cases to SEBI.
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Stock Exchanges shall... take action against listed companies for non- compliance with the provisions of the Listing Regulations... including failure to ensure expeditious redressal of investor complaints under Regulation 13
Stock exchanges will be the first recourse for certain categories of complaints against listed companies as provided in Annexure-2.
Investors are encouraged to initially take up their grievances for redressal with the concerned listed company directly. Companies are expected to resolve the complaint directly.
In case the company does not redress the complaint within 30 days from the date of receipt of the complaint, such direct complaints shall be forwarded to Designated Stock Exchange (DSE) through SCORES.
Upon receipt of the complaint through SCORES platform, the DSE shall take up the complaint with the company. The company is required to redress the complaint and submit an Action Taken Report (ATR) within 30 days from the date of receipt of such complaint.
In case the ATR is not submitted by the company within 30 days or DSE is of the opinion that the complaint is not adequately redressed... a reminder shall be issued by DSE to the listed company through SCORES directing expeditious redressal of the grievance within another 30 days.
On being adequately satisfied with the response of the company with respect to the complaint, the stock exchange shall submit an ATR to SEBI.
For any failure to redress investor grievances pending beyond 60 days by listed companies, stock exchange shall initiate appropriate action against the listed company as detailed below.
Stock exchanges shall levy a fine of Rs. 1000 per day per complaint on the listed entity for violation of Regulation 13 (1) of SEBI (LODR) Regulations, 2015 read with SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/12 dated 22 January, 2020.
Fines shall also be levied on companies which are suspended from trading.
DSE shall issue a notice to the listed entity intimating them about the levy of fines while also directing them to submit ATRs on the pending complaints and payment of fines within 15 days from the date of such notice.
In case the listed entity 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)... to ensure submission of ATRs... and payment of fines... within 10 days
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Source: SecMarx — Investor grievances redressal mechanism – Handling of SCORES complaints by stock exchanges and Standard Operating Procedure for non-redressal of grievances by listed companies.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.