capital markets regulator SEBI has issued new guidelines for registered entities and designated bodies related to handling and monitoring of complaints received through the SCORE platform. The Securities and Exchange Board of India (SEBI) said in a circular that the new guidelines will come into effect from December 4. SCORES (SEBI Complaint Redressal System) is a complaint redressal system. It was started in June 2011. Through this, investors can lodge their complaints with SEBI against the securities market, companies, intermediaries and market related infrastructure institutions. Under the new guidelines, all entities, including companies, receiving complaints through SCORES will have to resolve the complaint within 21 days from the date of receipt. With this, the rights of mutual fund and stock market investors will be further strengthened.
There will be freedom to choose the option of reviewing the complaint
Any complaint registered against any entity on the SCORES platform will automatically go to the concerned entity through this platform for resolution and action report on it. Also, any complaint against any entity will be sent to the concerned designated body through SCORES. The designated body for listed companies will be the stock exchanges and for mutual funds their body will be the Association of Mutual Funds in India (AMFI). If the complainant is satisfied with the resolution of the matter or does not choose to review the complaint, it will be disposed of. However, if the complainant is not satisfied, he can request a review from the entity providing resolution of the problem. The concerned unit will resolve the issue within 15 days from the date of action report.
There is also a provision to impose fine on the company
Also, the complainant can seek second review of the complaint by the designated body within 15 days from the date of submission of the action taken report (ATR). SEBI or the designated body may seek clarification on the ATR submitted from the concerned entity. Apart from this, the regulator has also made a provision to impose penalty on the listed company which fails to settle the complaints of investors within the stipulated time.
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