Publishing Investor Charter and Disclosure of Complaints by Merchant Bankers on their Websites
Summary
SEBI mandates all registered Merchant Bankers to publish specific Investor Charters and disclose complaint data on their websites. The disclosure requirements cover eight distinct categories of primary market activities and exit options. These provisions are designed to enhance investor transparency and grievance redressal mechanisms. This section outlines the investor grievance redressal mechanism, specifying entities like issuers, SEBI, and stock exchanges where complaints can be lodged. It establishes strict timelines for the resolution of IPO/FPO grievances, mandating a response within T+3 days and best efforts to resolve issues by T+30 days. Additionally, it details the rights issue process, including the dissemination of information, application procedures via ASBA, and the handling of Rights Entitlements. This section outlines mandatory investor obligations regarding secondary market purchases, application withdrawals, and dematerialization requirements for rights issues. It establishes a detailed timeline of twenty-one specific activities, ranging from the filing of the Draft Letter of Offer to post-issue trading commencement. The provisions specify critical deadlines for r
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With a view to provide investors an idea about the various activities pertaining to primary market issuances as well as exit options like Takeovers, Buybacks or Delistings, an Investor Charter has been developed in consultation with the Merchant Bankers.
All the registered Merchant Bankers are hereby advised to disclose on their website, Investor Charter for each of the following categories, as provided at Annexure-‘A’ to this circular - 3.1. Initial Public Offer (IPO) and Further Public Offer (FPO) including Offer for Sale (OFS); 3.2. Rights Issue; 3.3. Qualified Institutions Placement (QIP); 3.4. Preferential Issue; 3.5. SME IPO and FPO including OFS; 3.6. Buyback of Securities; 3.7. Delisting of Equity Shares; 3.8. Substantial Acquisitions of Shares and Takeovers.
Additionally, in order to bring about transparency in the Investor Grievance Redressal Mechanism, it has also been decided that all the registered Merchant Bankers shall disclose on their respective websites, the data on complaints received against them or against issues dealt by them and redressal thereof, on each of the aforesaid categories separately as well as collectively, latest by 7th of succeeding month, as per the format enclosed at Annexure- ‘B’ to this circular.
The provisions of this circular shall come into effect from January 01, 2022.
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Issuers, SEBI, Stock Exchanges, Merchant Bankers, Registrar, SCSBs, and SCORES are listed as points of contact for grievances.
Investor grievance received by the lead manager is recorded on day T.
Manager to the offer to identify the concerned intermediary and it shall be endeavoured to forward the grievance to the concerned intermediary/ies on T day itself.
The concerned intermediary/ies to respond to the lead manager with an acceptable reply / proof of resolution.
LM to reply to the investor with the reply / proof of resolution.
Best efforts will be undertaken by lead manager to resolve the grievance within T+30.
Delay in unblocking of funds, Non allotment / partial allotment of securities, Non receipt of securities in demat account, Amount blocked but application not bid, Application bid but amount not blocked.
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Source: SecMarx — Publishing Investor Charter and Disclosure of Complaints by Merchant Bankers on their Websites. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.