Exchanges need to ensure investors complaints are resolved within 15 working days: Sebi

New Delhi: Markets regulator Sebi on Friday said stock exchanges will have to ensure that investor grievances are resolved within 15 working days after receiving such complaints. The move is aimed at strengthening the investor grievance redressal mechanism, the Securities and Exchange Board of India (Sebi) said in a circular.

The regulator also said that Investor Grievance Redressal Committee (IGRC) would not dispose the complaint citing lack of information and complexity of the case.

Besides, expenses of IGRC will be borne by the respective stock exchange and no fees would be charged to the complainant, Sebi said.

"Stock exchange shall ensure that the investor complaints shall be resolved within 15 working days from the date of receipt of the complaint," Sebi said.

Aditional information, if any, required from the complainant, would be sought within seven working days from the date of receipt of the complaint.

Further, exchanges will have to maintain a record of all the complaints addressed within 15 working days from the date of receipt of the complaint or additional information.

If complaint is not resolved within stipulated time frame, then the reason for non redressal should also be recorded.

Sebi said exchanges will have to resolve service-related complaints at its end.

However, in case the complainant is not satisfied with the resolution, the same may be referred to IGRC after recording the reasons in writing by the chief regulatory officer of the bourse or any other authorised officer of the exchange.

Service-related complaints include non-receipt or delay of account statement, non-receipt or delay of bills, closure of account, technological issues, improper service by staff, freezing of account, alleged debit in trading account and demat account transferred without permission.

For complaints-related to trade, settlement and 'deficiency in services' resulting into any fnancial loss, the exchanges would resolve the complaint on its own as per the time lines prescribed, Sebi said.

However, if complaint is not resolved the same would be referred to IGRC.

"It shall be the responsibility of the stock exchange to provide documents/ necessary information after collecting the same from the member and/ or the complainant and provide necessary assistance to IGRC to ensure resolution of complaints in a timely manner," Sebi said.

With regard to handling of complaints by IGRC, Sebi said the committee will have a time of 15 working days to resolve the investor complaint through conciliation process.

If IGRC needs additional information, then it may request the exchange to provide the same before the initiation of the conciliation process.

In such cases, where additional information is sought, the timeline for resolution of the complaint by IGRC would not exceed 30 working days.

IGRC, which would have to give its recommendation to exchanges, would decide claim value admissible to the complainant, upon conclusion of the proceedings.

In case a claim is admissible to the complainant, exchanges would have to block the admissible claim value from the deposit of the member as specified in this regard.

With regard to arbitration, Sebi said any dispute between the member and the client, which is of civil nature, will be first referred to IGRC and/ or to arbitration mechanism provided by the bourse before resorting to other remedies available under any other law.

The regulator clarified that the sole arbitrator or the panel of arbitrators, as the case may be, appointed under the exchange arbitration mechanism would always be deemed to have the competence to rule on its jurisdiction.

It, further, said a complainant or member, who is not satisfied with the recommendation of IGRC, will avail the arbitration mechanism of the exchange for settlement of complaints within six months from the date of IGRC recommendation.

The exchanges have been asked to organise regular training programme for IGRC members in consultation with National Institute of Securities Markets (NISM). The cost of such programmes will be be borne by Investor Service Fund of the exchange.