SEBI Resolves Over 5,500 Investor Complaints via SCORES in May

The Securities and Exchange Board of India (SEBI) continues to strengthen its investor protection framework, reporting a significant surge in grievance redressal through its digital platform. Recent data reveals a robust efficiency in handling market-related complaints, ensuring that investor concerns are addressed with increasing speed and transparency.

Rapid Resolution and Declining Pendency

In a significant move toward improving market trust, SEBI disposed of 5,548 investor complaints through its online grievance redressal platform, SCORES, during the month of May. While the platform received 4,918 fresh complaints during the same period, the high disposal rate led to a net reduction in the total backlog.

The total number of pending complaints saw a notable decline, dropping from 6,167 to 5,537 as of May 31. This indicates that the regulator is effectively managing the inflow of grievances, preventing a massive buildup of unresolved issues that could hinder retail investor confidence in the capital markets.

Efficiency Metrics and Entity Accountability

The data highlights a streamlined process for responding to investor grievances. During April, entities involved in the capital markets took an average of just five days to submit their Action Taken Reports (ATRs) regarding complaints. Furthermore, for complaints undergoing a first-time level review, the average resolution time was maintained at eight days.

Despite the overall efficiency, a small number of cases remain outstanding. As of the end of May, 10 complaints have been pending for more than three months. These delayed cases involve specific entities, including KFin Technologies Pvt Ltd, Secur Credentials Ltd, and Eastern Investments Ltd. SEBI clarified that the "pending" status also includes cases where entities have submitted their ATRs within the stipulated timeframe, but the investor has chosen to seek a review due to dissatisfaction with the resolution.

The SCORES 2.0 Mechanism: A Multi-Tiered Approach

The evolution of the SCORES 2.0 platform has introduced a structured, automated workflow to ensure accountability. Under this upgraded system, complaints are automatically forwarded to the concerned entity, which is mandated to submit an ATR to the investor within 21 days.

The platform offers a robust escalation ladder for investors:

  • First-Level Review: If an investor is unsatisfied with the entity's response, they can seek a review within 15 days. A designated body then examines the complaint and submits an ATR.
  • Second-Level Review: If dissatisfaction persists, investors have another 15-day window to request a second-level review. In these instances, SEBI directly examines the matter and provides the final ATR.

Additionally, complaints are marked as disposed of if investors choose to transition their grievances to the Online Dispute Redressal (ODR) mechanism, ensuring that the process moves toward a definitive conclusion.

Key Takeaways

  • Increased Efficiency: SEBI resolved 5,548 complaints in May, outpacing the 4,918 new complaints received, thereby reducing the total pendency.
  • Fast Turnaround: Entities are responding quickly, with an average of five days to submit Action Taken Reports (ATRs).
  • Structured Escalation: The SCORES 2.0 platform provides investors with clear, time-bound windows for first and second-level reviews if they are unhappy with initial resolutions.