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SEBI Postpones Implementation of Grievance Redressal Process

The Securities and Exchange Board of India (SEBI) has deferred the implementation of its circular on the redressal of investor complaints through SCORES (SEBI Compliant Redressal System) and linking it to online dispute resolution platform, from December 4, 2023, to April 1, 2024.

The SCORES platform was introduced in 2011 to resolve the investors’ complaints against listed companies, registered intermediaries, and market infrastructure institutions. The process of grievance redressal was revised pursuant to the notification of SEBI (Facilitation of Grievance Redressal Mechanism) (Amendment) Regulations, 2023. SEBI’s circular dated September 20, 2023, required designated bodies to apply for SCORES authentication and/ or for API integration with SCORES within such period to ensure due compliance with the circular. However, certain complaints such as those against companies undergoing resolution under provisions of the Insolvency and Bankruptcy Code, 2016, companies under liquidation, companies governed by other regulatory bodies including the Reserve Bank of India (RBI), Competition Commission of India (CCI), etc. cannot be processed under SCORES.

Though the implementation of the said circular has been postponed, the entities would mandatorily have to continue to submit the Action Taken Report (ATR) on SCORES within 21 calendar days from the receipt of the complaint as specified under SEBI’s circular.