CIRCULAR
CIR/MIRSD/20/2011 September 12, 2011
To
NSDL & CDSL
Sir/Madam,
Sub: Redressal of investor grievances against Depository Participants (DPs) in SEBI Complaints Redress System (SCORES)
1. SEBI has commenced processing of investor grievances in a centralized web-based complaints redressal system, ˜SCORES™. The salient features of this system are:
¢ Centralized database of all complaints;
¢ Online movement of complaints to the concerned entities;
¢ Online upload of Action Taken Reports (ATRs) by the concerned entities; and
¢ Online tracking of status of complaints by investors.
2. The investor grievances received by SEBI against DPs will be taken up electronically with the concerned Depositories through SCORES. The Depositories shall, in turn, take up the matter with the concerned DPs.
3. The DPs shall take adequate steps for redressal of grievances within one month from the date of receipt of the complaint and keep the investor/Depositories duly informed of the action taken thereon. Failure to comply with the said requirement will render the DP liable for penal action.
4. The Depositories shall:
a) put in place a suitable mechanism to follow up with the DPs, wherever necessary;
b) devise a system to levy penalty on DPs for any non-compliance with the requirements specified in para 3 above;
c) update the status of the complaints in SCORES, at every stage, along with supporting documents; and
d) ensure that the status of investor complaints disclosed on their websites is in conformity with the status updated in SCORES.
Securities and Exchange Board of India
5. The Depositories are advised to:
a) issue necessary instructions to bring the provisions of this circular to the notice of their constituents and also disseminate the same on their websites;
b) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above in co-ordination with one another to
achieve uniformity in approach;
c) communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report of the following month;
d) monitor the compliance of this circular through half-yearly internal audit and inspections of DPs; and
e) encourage investors to use SCORES for lodging their grievances.
6. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect from the date of this circular.
7. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and Circulars.
Yours faithfully,
Prasanta Mahapatra
Deputy General Manager
022-26449313
prasantams@sebi.gov.in
