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

The Securities and Exchange Board of India (SEBI) has demonstrated significant efficiency in its grievance redressal efforts, resolving a substantial volume of investor complaints during the month of May. Through its digital SCORES platform, the regulator is streamlining the way retail investors interact with market entities to ensure faster justice.

Surge in Resolution and Decline in Pending Cases

According to recent data released by SEBI, the regulator's online grievance platform, SCORES, witnessed high activity throughout May. During this period, the platform received 4,918 fresh complaints. However, the efficiency of the disposal mechanism was evident as SEBI successfully resolved 5,548 complaints within the same month.

This proactive approach led to a notable reduction in the total backlog of grievances. As of May 31, the number of pending complaints dropped to 5,537, down from 6,167 at the start of the month. This downward trend indicates that the regulator is managing the inflow of complaints more effectively than the volume of new grievances being filed.

Operational Efficiency and Entity Accountability

SEBI’s data highlights the speed at which market entities are responding to investor concerns. In April, entities took an average of just five days to submit their Action Taken Reports (ATRs) regarding complaints. Furthermore, the average resolution time for complaints undergoing a first-level review stood at eight days.

Despite these improvements, a small number of complaints remain unresolved for longer durations. As of the end of May, 10 complaints have been pending for more than three months. These long-standing issues involve specific entities, including KFin Technologies Pvt Ltd, Secur Credentials Ltd, and Eastern Investments Ltd. It is important to note that SEBI clarifies that "pending" status also includes cases where an entity has submitted an ATR, but the investor has chosen to seek a review due to dissatisfaction.

Understanding the SCORES 2.0 Redressal Process

Under the enhanced SCORES 2.0 framework, the complaint lifecycle is strictly monitored to prevent delays. Once a complaint is filed, it is automatically forwarded to the concerned entity, which has a mandatory 21-day window to submit an ATR to the investor.

The platform offers a multi-tier review system to protect investor interests:

  • First-Level Review: If an investor is unsatisfied with the entity's response, they can request a review within 15 days. This is examined by a designated body.
  • Second-Level Review: If dissatisfaction persists, investors can seek a second-level review within another 15 days, after which SEBI directly examines the matter.
  • ODR Mechanism: Complaints are also marked as disposed of if an investor chooses to move toward the Online Dispute Redressal (ODR) mechanism for formal resolution.

Key Takeaways

  • Improved Backlog Management: SEBI resolved 5,548 complaints in May, reducing the total pending grievances from 6,167 to 5,537.
  • Rapid Response Times: Entities are averaging five days to submit Action Taken Reports, while first-level reviews are being resolved in approximately eight days.
  • Robust Review System: The SCORES 2.0 platform provides investors with a structured two-tier review process if they are unhappy with the initial response from a market entity.