Bourses to have stronger investor redressal system: SEBI

SEBI has advised stock exchanges to ensure that all complaints are resolved at their end within 15 days

January 01, 1970 5:30 IST | India Infoline News Service
Market regulator SEBI on Thursday asked stock exchanges to put in place a stronger and more effective system for faster resolution of investor grievances and to provide for immediate grant of monetary relief to investors after arbitration procedures.

With a view to streamline and make more effective the investor grievance redressal mechanism at Stock Exchanges, it has been decided to shorten the time taken for the proceedings as well as to give monetary relief to the investors, during the course of pendency of proceedings, SEBI said in a circular.

SEBI has advised stock exchanges to ensure that all complaints are resolved at their end within 15 days.

The correspondence with the Member & investor (who is client of a Member) may be done on email if the email id of the investor is available in the UCC database.
The Member (Stock Broker, Trading Member and Clearing Member) shall provide a dedicated email id to the stock exchange for this purpose, SEBI added.

In case the matter does not get resolved, conciliation process of the exchange would start immediately.

Investor Grievance Redressal Committee (IGRC) shall be allowed a time of 15 days to amicably resolve the investor complaint, SEBI added.

IGRC shall adopt a two-fold approach i.e. for proceedings leading to direction to the Member to render required service in case of service related complaints and proceedings leading to an order concluding admissibility of the complaint or otherwise in case of trade related complaints.

In case the matter is not resolved through the conciliation process, IGRC would ascertain the claim value admissible to the investor.

Upon conclusion of the proceedings of IGRC, i.e. in case claim is admissible to the investor, Stock Exchanges shall block the admissible claim value from the deposit of the Member.

The Stock Exchange shall give a time of 7 days to the Member from the date of signing of IGRC directions to inform the Stock Exchange whether the Member intends to pursue the next level of resolution ie. Arbitration.

In case, the Member does not opt for arbitration, the Stock Exchange shall, release the blocked amount to the investor after the aforementioned 7 days.
The SEBI has decided to give monetary relief to investors having claims upto Rs 10 lakh, during the course of proceedings from the Investor Protection Fund (IPF)of stock exchange.

Further, to lessen the burden of such investors, the amount payable by the investor for appellate arbitration has been reduced from Rs 30,000 to Rs 10,000.

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