Have you ever faced or faced wrongdoing in security markets? This Resolved by SEBI Scores

Did you know you can lodge complaints against any share, stock, or other financial product regulated by SEBI? This is great news for investors seeking to address grievances under the SEBI Act, SCRA Act, Depositories Act, or section 24 of the Companies Act, 2013.

For all investors, SCORES is a game-changer. It’s an online platform designed to make it easy for you to lodge complaints related to the securities market directly with SEBI, whether it’s against listed companies or SEBI-registered intermediaries.

SCORES has been around for nine years, and it just keeps getting better. The recent launch of the SCORES mobile app has made it even simpler for investors to file complaints on the go. Now, addressing your concerns is as easy as tapping a few buttons on your phone.

When you register a complaint, you must provide some mandatory details like your name, PAN, contact information, and email ID. This ensures that your complaint is properly logged and tracked.

SCORES isn’t just a complaint platform; it’s a boon for investors. It’s designed to ensure your grievances are heard and addressed efficiently, making your investment journey smoother and more secure.

So, whether you’re dealing with issues related to shares, stocks, or other financial products, SCORES is here to help. Embrace this powerful tool to make your voice heard and protect your investments. With SCORES, SEBI is making it easier than ever for you to get the resolution you deserve.

SEBI SCORES mobile application was launched in March 2020.

The Securities and Exchange Board of India (SEBI) has implemented a robust mechanism for handling complaints against listed companies and SEBI-registered intermediaries through its online platform known as SCORES (SEBI Complaints Redress System). This system is designed to address grievances related to various financial instruments and services, including shares and stocks. In addition to these, SCORES also allows investors to lodge complaints concerning the commodity derivatives market.

SCORES ensures a streamlined and transparent process for the redressal of investor complaints. Here’s how it works:

1. Complaint Registration: Investors can register their complaints on the SCORES website. The system is user-friendly, ensuring that the process is accessible to everyone, regardless of their level of technical proficiency.
2. Acknowledgment and Tracking: Once a complaint is registered, the complainant receives an acknowledgment. SCORES provides a unique complaint registration number, which investors can use to track the status of their complaint.
3. Forwarding to Relevant Entity: SEBI forwards the complaints to the concerned listed company or registered intermediary for resolution. The entity is required to respond to the complaint within a specified timeframe.
4. Monitoring and Follow-up: SEBI actively monitors the progress of the complaint resolution process. If the response from the entity is unsatisfactory or delayed, SEBI intervenes to ensure timely and effective resolution.
5. Closure and Feedback: After the issue is resolved, the complaint is closed. Investors are encouraged to provide feedback on their experience with the SCORES platform and the resolution process.

By utilizing SCORES, SEBI has enhanced the efficiency and effectiveness of its complaint redressal system, ensuring better protection for investors and fostering greater confidence in the financial markets. This platform not only addresses issues related to shares and stocks but also extends its services to the commodity derivatives market, making it a comprehensive tool for investor grievance management.

PROCEDURE TO REGISTER COMPLAINT ON SEBI SCORES:

SEBI has made it mandatory to register on SCORES, its web-based centralized grievance redressal system, for lodging complaints. Here’s a step-by-step guide to help you through the process:

1. Register on SCORES:
   • Visit the SCORES portal and click on “Register here” under the “Investor Corner” section on the homepage.
   • Fill in the registration form with the required details. Mandatory fields include your Name, Address, Email Address, PAN, and Mobile Number.
   • After submitting the form, you will receive your username and password via email.
2. Login to SCORES:
   • If you are already a registered user, log in using your username and password.
   • For new users, use the credentials sent to your registered email ID to log in.
3. Register a Complaint:
   • Once logged in, navigate to “Complaint Registration” under the “Investor Corner”.
   • Provide the details of your complaint, ensuring to select the correct complaint category, entity name, and nature of the complaint.
   • Briefly describe your complaint, with a limit of up to 1000 characters.
4. Attach Supporting Documents:
   • You can attach a PDF document (up to 2MB for each nature of complaint) as supporting evidence along with your complaint.
5. Submit the Complaint:
   • Upon successful submission, a system-generated unique registration number will be displayed on the screen. Note this number for future reference.
   • A text message will also be sent to your registered mobile number, informing you about the successful registration of your complaint.

By following these steps, you can efficiently lodge your complaints on the SCORES platform, ensuring that your issues are formally recorded and addressed by SEBI.

NOTE: In case, you are not able to register a complaint online, you can send your complaint through post to any of the SEBI offices whose addresses are given at SEBI Website on “http://www.sebi.gov.in/cms/sebi_data/templates/SebiAddresses.html

FOLLOWING ARE MATTER IN WHICH COMPLAINT CAN NOT BE REGISTERED AT SEBI SCORES

PROCEDURE TO CHECK COMPAINT STATUS.

To check your complaint status, click on “View Complaint Status” under “Investor Corner” on the homepage.

Step 1: Provide the complaint registration number which was allotted at the time of registration of your complaint.

Step 2: Please enter your password.

a) In case of web complaint, your email address is your password.

b) In case of physical complaints sent to SEBI, please enter the password which was communicated by SEBI in the acknowledgement letter sent to you.

On verifying the correctness of registration number, password and security code, the current status of your complaint is displayed.

BONUS NOTE: Further, you may also contact SEBI toll free Helpline service number 1800 266 7575 or 1800 22 7575 and tell them the registration no. of your complaint whereby they can provide you with the status of your complaint.

Moving Further let’s Understand some key points on which complaint can be lodge on SCORE.

1. Complain about market or price manipulation or violation of Insider trading regulations:

The information provided under the categories of Price/market manipulation and Insider trading will be treated as market intelligence. Therefore, no complaint number and acknowledgement shall be sent to you. Also, the same would not be tracked through SCORES. This information shall be treated as confidential.

This information will be analysed and if found necessary, further action will be taken. The status of information cannot be ascertained as SEBI conducts the investigations confidentially in a holistic manner.

In order to aid SEBI to carry out its surveillance activity, you are encouraged to provide correct and complete information. SEBI will neither confirm nor deny the existence of any investigation. Any regulatory actions taken by SEBI are published at SEBI website at www[dot]sebi[dot]gov[dot]in.

• Alleged violation of Takeover/Delisting Regulations by the promoters/acquirers:

You can lodge your complaint about alleged violation of Takeover Regulations and Delisting Regulations by the acquirers/promoters of the target company. However, status of your complaint cannot be disclosed since SEBI conducts examinations confidentially.

As a matter of policy, SEBI neither confirms nor denies the existence of any examination/investigation. Any regulatory action taken by SEBI is published at SEBI website at www.sebi.gov.in after the proceedings are completed.

Complaints Registered on SCORES can be referred to arbitration too, Let us understand this in a better way.

Complaints registered on SEBI’s SCORES platform can be referred to arbitration, providing an alternative resolution method for disputes. Let’s break this down in an engaging way.

What is Arbitration?

Arbitration is a process where a neutral third party, the arbitrator, resolves disputes outside of court. It’s often quicker and less costly than litigation. If you have an account with a broker or depository participant (DP), you likely agreed to settle disputes through arbitration.

When Should You Consider Arbitration?

1. Existing Agreements: If your agreement with the broker or DP mandates arbitration, this is your primary recourse.
2. Choice of Resolution: Even without a pre-existing arbitration clause, you can choose arbitration to resolve disputes.

Limitations and Considerations

• Time Bars: Issues barred by limitation periods cannot be pursued through arbitration.
• Financial Recovery: If your broker or DP goes out of business or declares bankruptcy, recovering your money might be difficult, even if you win the arbitration.

Stock Exchanges and Investor Protection

Stock Exchanges have provisions to settle investor claims under specific guidelines. These guidelines, outlined in the investor protection fund of each Stock Exchange, provide a safety net up to a prescribed limit for certain types of transactions.

Simplified Arbitration: A Cost-Effective Alternative

Simplified arbitration offers a less expensive route. Before opting for this, review the rules governing the process carefully. Weigh the costs of arbitration against the potential for collecting any awarded compensation. This is crucial, especially if the brokerage firm is no longer operational or has declared bankruptcy.

Real-World Implications

In some cases, entities or companies may deny any wrongdoing, leading to unclear outcomes. Arbitration becomes particularly valuable here, as it provides a platform to resolve such ambiguities efficiently.

Steps to Arbitration via SCORES

1. Register Complaint on SCORES: First, lodge your complaint on the SEBI SCORES platform. Ensure you provide all mandatory details and supporting documents.
2. Explore Arbitration: If the dispute is unresolved, consider arbitration as the next step.
3. Evaluate Feasibility: Assess if arbitration is the best route considering time limitations and the financial viability of recovering awarded amounts.
4. File for Arbitration: Follow the simplified arbitration process if it suits your case. Ensure compliance with all relevant rules and guidelines.

Final Thoughts

While arbitration offers a streamlined and cost-effective dispute resolution method, it’s essential to consider the potential challenges, such as limitations on claims and the financial stability of the broker or DP. By understanding these nuances, you can make an informed decision on whether arbitration is the right path for your complaint lodged on SEBI SCORES.

In summary, SEBI’s SCORES platform, coupled with arbitration, provides a structured approach to resolving investor disputes. It’s a valuable resource, but like any legal process, it requires careful consideration and understanding of the associated rules and potential outcomes.

If this happens, SEBI cannot act as a judge or an arbitrator and force the entity or company to resolve your complaint. Further, SEBI cannot act as your personal representative or attorney. But the law allows you to take legal action on your own.

Conclusion

Navigating the complexities of the financial markets can be challenging, but SEBI’s SCORES platform provides a robust mechanism for investors to lodge and resolve complaints against listed companies and SEBI-registered intermediaries. From registration to arbitration, the platform offers a transparent and efficient way to address grievances, thereby reinforcing investor confidence.

However, despite the comprehensive system in place, there might be instances where an investor is not satisfied with the resolution of their complaint. In such extreme scenarios, SEBI has thoughtfully incorporated an additional layer of oversight to ensure every grievance is thoroughly examined and fairly addressed.

Utilizing the ‘Unsatisfied’ Option

If you find yourself dissatisfied with the resolution provided, SCORES offers a critical feature to express this dissatisfaction. By ticking the ‘unsatisfied’ icon and providing mandatory reasons for your dissatisfaction, you can ensure your concerns are re-evaluated. This feedback mechanism is not just a formality; it serves as an important checkpoint in the redressal process.

Escalation to Supervising Officer

Once marked as ‘unsatisfied,’ your complaint is automatically routed to a Supervising Officer. This escalation ensures that a higher authority reviews your case, providing an additional level of scrutiny and potentially leading to a more satisfactory resolution. The provision of this option underscores SEBI’s commitment to fair and thorough grievance redressal.

Timeliness is Key

It’s important to note that this option is available for a limited time. Investors have a window of fifteen days from the date of complaint closure in SCORES to mark their dissatisfaction and provide reasons. This timeline ensures that complaints are addressed promptly and do not linger unresolved, maintaining the integrity and efficiency of the grievance redressal system.

Final Thoughts

The multi-layered approach of SEBI’s SCORES, from initial complaint lodging to potential arbitration and further escalation in cases of dissatisfaction, exemplifies a well-structured system aimed at protecting investor interests. By providing clear, accessible steps for investors to follow, SEBI ensures that grievances are not only heard but resolved in a manner that fosters trust and transparency in the financial markets.

In conclusion, SEBI’s SCORES platform is a testament to proactive regulatory governance. It empowers investors by giving them a voice and providing a structured, transparent mechanism for complaint resolution. Whether through initial redressal, arbitration, or escalation to a Supervising Officer, SCORES embodies SEBI’s commitment to maintaining a fair and efficient market. For investors, understanding and utilizing these features effectively can significantly enhance their ability to navigate and resolve disputes in the complex world of finance.