Investor Grievance Redressal Mechanism and Amendment to SEBI Circular no. SEBIHODMSCIRP201715 dated February 23 2017
Summary
SEBI mandates all Recognized Stock Exchanges and Depositories to implement an online web-based complaints redressal system within six months. The circular establishes a hybrid mode for conducting Grievance Redressal Committee meetings and arbitration processes. Additionally, it exempts clients with claims up to Rs. 20 lakh from paying arbitration fees under specific conditions.
Text
all Recognized Stock Exchanges including Commodity Derivatives Exchanges / Depositories are advised to design and implement an online web based complaints redressal system of their own... The above redressal mechanism shall be implemented within 6 months from the issuance of this circular.
All Recognized Stock Exchanges including Commodity Derivatives Exchanges / Depositories are advised to widely publicise (including in media) its online web based complaints redressal system.
Stock Exchanges shall continue with the hybrid mode (i.e., online and offline) of conducting GRC and arbitration / appellate arbitration process. The Depositories shall follow the hybrid mode (i.e. online and offline) of conducting GRC and arbitration / appellate arbitration process.
A client, who has a claim / counter claim upto Rs.20 lakh (Rs. Twenty lakh) and files arbitration reference, will be exempted from payment of the fees specified in Clause 1.J.(i).
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/ DPs and also to disseminate the same through their website
take steps to make the investors aware of the aforesaid changes/ modifications.
Complaints/GRC/Arbitration/Appellate Arbitration and reminders thereon are lodged online at anytime from anywhere
An email is generated instantaneously acknowledging the receipt of the complaint and allotting a unique registration number for future reference and tracking
The entity concerned can indicate the mode i.e. online or offline for GRC and arbitration.
The access of the online system should be given to the Trading Members and Depository Participants.
The entity concerned uploads an Action Taken Report (ATR) on the Complaints/GRC/Arbitration/Appellate Arbitration
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Source: SecMarx — Investor Grievance Redressal Mechanism and Amendment to SEBI Circular no. SEBIHODMSCIRP201715 dated February 23 2017. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.