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TMI BlogInvestor grievances redressal mechanism – Handling of SCORES complaints by stock exchanges and Standard Operating Procedure for non-redressal of grievances by listed companiesX X X X Extracts X X X X X X X X Extracts X X X X ..... of SEBI circular nos. SEBI/HO/OIAE/IGRD/CIR/P/2018/58 dated 26 March, 2018 regarding redressal of investor grievances through SEBI Complaints Redress System (SCORES) platform and SEBI/HO/CFD/CMD/CIR/P/2020/12 dated 22 January, 2020 on non-compliance with certain provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( Listing Regulations). 2. In terms of SEBI circular SEBI/HO/CFD/CMD/CIR/P/2020/12 dated 22 January, 2020, Stock Exchanges shall, having regard to the interest of investors and the securities market, inter alia take action against listed companies for non- compliance with the provisions of the Listing Regulations and circulars/guidelines issued thereunder, including failure to ensure expeditious ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DSE. 8. Upon receipt of the complaint through SCORES platform, the DSE shall take up the complaint with the company. The company is required to redress the complaint and submit an Action Taken Report (ATR) within 30 days from the date of receipt of such complaint. 9. In case the ATR is not submitted by the company within 30 days or DSE is of the opinion that the complaint is not adequately redressed and the complaint remains pending beyond 30 days, a reminder shall be issued by DSE to the listed company through SCORES directing expeditious redressal of the grievance within another 30 days. 10. On being adequately satisfied with the response of the company with respect to the complaint, the stock exchange shall submit an ATR to SEBI. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promoter and promoter group. 17. The depository(ies) shall immediately freeze such demat accounts and also intimate the promoter(s) about the details of non-compliances resulting in freezing of their demat accounts. 18. In case listed entity fails to pay the fine or resolve the complaint despite receipt of the notice as stated above, the DSE may initiate other action as deemed appropriate. 19. While issuing the aforementioned notices, the DSE shall also send intimation to other recognized stock exchange(s) where the shares of the non-compliant entity are listed. 20. Once stock exchange(s) has exhausted all options and if number of pending complaints exceed 20 or the value involved is more than ₹ 10 lakhs, stock exchanges shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e investor's complaint but has paid the accrued fines, the Exchange shall continue to levy the fines and may initiate action as deemed appropriate. 30. The recognized stock exchanges shall take necessary steps to implement this circular. The recognized stock exchanges shall disclose on their website the action(s) taken against the listed entities for non-compliance(s) with grievances; amount of fine levied, details regarding the freezing of shares, compliance etc. 31. The above provisions are without prejudice to the power of SEBI to take action under the securities laws. 32. The recognized stock exchanges are advised to bring the provisions of this Circular to the notice of listed entities and the listed entities shall in turn bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpliances: a. Notice to Listed company intimating the fine @ ₹ 1000/- per day, per complaint to be levied for not resolving the complaints within 60 days T+61 b. Notice to Promoters for non-resolution of complaints and non-payment of fine to the stock exchange. T+76 c. Freezing of promoters shareholdings (i.e. entire shareholding of the promoter and promoter group in listed company as well as all other securities held in the demat account of the promoter and promoter group) in demat account. T+86 d. Stock exchanges may take any other actions, as deemed appropriate. e. Once Stock exchange has exhausted all options and if number of pending complaints exceed 20 or the value involved is more than ₹ 10 lakhs, the Exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tronic mode 25. Demat/Remat 26. Any other nature as may be informed from time to time However, the stock exchanges shall not handle the following type of complaints and forward the complaints as directed below:- Sl. No. Grievances Pertaining to Process for handling complaints 1. a. Deposits u/s 73 & 74 of Companies Act, 2013 b. Complaint against Nidhi Companies. c. All matters as delegated under overriding powers under Companies Act 2013 d. Complaints pertaining to dividend and securities transferred to IEPF Forward the complaint to MCA under intimation to Complainant. 2. Pension funds Forward the complaint to Pension Fund Regulatory and Development Authority (PFRDA) under intimation to Complainant. 3. Monopoly and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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