To allow traders to lodge their complaints and observe the standing of redressal of such grievances, capital markets regulator Sebi on Monday requested inventory exchanges and depositories to launch a web-based complaints redressal system of their very own inside six months.
This is according to the web platform, SCORES, launched by the capital markets regulator in June 2011 to assist traders lodge their complaints, pertaining to the securities market, towards listed firms and Sebi-registered intermediaries.
SCORES stands for Sebi Complaints Redress System.
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“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, which will facilitate investors to file complaints and escalate complaints for redressal through Grievance Redressal Committee (GRC), arbitration, appellate arbitration etc. in accordance with their respective byelaws, rules and regulations,” Securities and Exchange Board of India (Sebi) mentioned in a round.
The redressal mechanism might be carried out inside six months, it added.
The new system is meant to expedite redressal or disposal of traders’ complaints as it might additionally obviate the necessity for bodily motion of complaints.
Further, the potential for loss, injury or misdirection of the bodily complaints can be prevented. It would additionally facilitate straightforward retrieval and monitoring of complaints at any time.
Sebi mentioned the system ought to be web-enabled and supply on-line entry around the clock.
Listing out the options of the brand new system, the regulator mentioned that the complaints and reminders thereon are lodged on-line at anytime from wherever. Further, an e mail is generated instantaneously acknowledging the receipt of the criticism and allotting a novel registration quantity for future reference and monitoring.
Besides, there ought to be a provision to hyperlink the web system with SCORES.
In addition, Sebi has requested inventory exchanges to proceed with the hybrid mode — on-line and offline — of conducting GRC and arbitration or appellate arbitration course of. Also, the depositories should observe the hybrid mode.
During the Covid-19 pandemic, inventory exchanges have been suggested to conduct GRC and arbitration or appellate arbitration hearings on-line for sooner redressal of complaints. The on-line course of saves time and price of the events concerned which is within the curiosity of traders.
All inventory exchanges and depositories have been requested to broadly publicise its on-line web-based complaints redressal system.
Further, the regulator has tweaked the quantity with regard to the deposit to be made by the investor on the time of creating the arbitration utility.
“A client, who has a claim / counter claim up to Rs 20 lakh and files arbitration reference, will be exempted from payment of the fees,” Sebi mentioned.
If the dispute includes a declare quantity lower than or equal to Rs 20 lakh, then the investor, both applicant or respondent, is exempted from fee of charges in the direction of value of arbitration and the change will bear the identical on behalf of the investor.
Earlier, the declare restrict was as much as Rs 10 lakh.
Source: www.financialexpress.com”