Capital market regulator Sebi has notified rules to strengthen investor grievance redressal mechanism wherein complaints will have to be addressed by the entities concerned within 21 days.
The new rules also come against the backdrop of increasing participation of investors in the securities markets.
Now, merchant bankers, debenture trustees, registrar to an issue, share transfer agent and a know your client registration agency will redress investor grievances within 21 days, according to a notification issued on Thursday.
The rules will also be applicable to portfolio managers, investment advisers and research analysts.
Sebi can also recognise a body corporate for handling and monitoring the grievance redressal process within the stipulated time.
The new framework will be called Sebi’s Facilitation of Grievance Redressal Mechanism Rules 2023.
In June, the regulator’s board approved a proposal to revamp Sebi Complaint Redress System (SCORES) to strengthen the process of redressal of investors’ grievances.
The board approved the proposal to boost investor grievance handling mechanism through SCORES and linking the new platform with the Online Dispute Resolution (ODR) mechanism.
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