SEBI Proposes Measures to Strengthen ‘Investors Grievance Handling Mechanism’

SEBI Report 2; dated: 19.05.2023

SEBI has released a consultation paper discussing the proposal to strengthen the investor grievance handling mechanism by integrating the SEBI Complaint Redressal System (SCORES) with the recently approved online dispute resolution (ODR) mechanism.

The objective is to make the entire redressal process of grievances in the securities market more comprehensive by providing an end-to-end solution, and making the process more efficient and faster by reducing timelines and introducing auto-routing and auto-escalation.

The proposal also provides for two levels of review that the investor can opt for, along with an option for referral to the Online Dispute Resolution mechanism recently approved by SEBI.

Further, complaints pertaining to market price manipulation, insider trading, accounting manipulation by listed companies that are currently being auto-closed will be excluded from the SCORES platform as these cannot be treated as complaints and a separate portal for market intelligence will be created for this purpose.

In case, the investors lodge complaints in the nature of market intelligence on SCORES, such type of complaints would be closed and routed to the Market Intelligence portal.

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