SEBI Resolves Over 5,500 Investor Complaints via SCORES in May
The Securities and Exchange Board of India (SEBI) has demonstrated significant progress in streamlining investor grievance redressal through its digital platform. In a recent public notice, the capital markets regulator revealed a substantial surge in resolved complaints during the month of May.
Surge in Resolutions and Reduced Backlog
According to data released by SEBI, the SCORES (SEBI Complaints Redress System) platform saw a high volume of activity in May. During this period, the regulator resolved 5,548 complaints, successfully outpacing the 4,918 fresh complaints received. This efficiency led to a notable reduction in the total pending complaints, which dropped from 6,167 at the start of the month to 5,537 as of May 31.
Despite this progress, a small fraction of complaints remain unresolved for extended periods. As of the end of May, exactly 10 complaints have been pending for more than three months. These long-standing grievances involve specific entities, including KFin Technologies Pvt Ltd, Secur Credentials Ltd, and Eastern Investments Ltd.
Efficiency Metrics and Response Timelines
SEBI’s data highlights a commitment to rapid turnaround times for market participants. In April, entities took an average of just five days to submit their Action Taken Reports (ATRs) regarding investor complaints. Furthermore, for complaints requiring a first-level review, the average resolution time was recorded at eight days.
It is important for investors to note that the "pending" status does not always imply inaction by the entities. Some complaints remain marked as pending because the entities have submitted their ATRs within the stipulated timeframe, but the investors have chosen to exercise their right to seek a review due to dissatisfaction with the initial response.
Understanding the SCORES 2.0 Framework
Under the enhanced SCORES 2.0 system, the grievance process is highly automated and structured to ensure accountability. Once a complaint is lodged, it is automatically forwarded to the concerned entity, which is then mandated to submit an ATR to the investor within 21 days.
The platform provides a multi-tier recourse mechanism for dissatisfied investors:
- First-Level Review: If an investor is unsatisfied with the entity's response, they can request a first-level review within 15 days. A designated body then examines the matter.
- Second-Level Review: If the dissatisfaction persists, investors can seek a second-level review within another 15-day window. In this instance, SEBI directly examines the matter and submits the final ATR.
- ODR Mechanism: Complaints are also marked as disposed of if the investor chooses to transition the matter to the Online Dispute Redressal (ODR) mechanism.
Key Takeaways
- Improved Redressal Efficiency: SEBI resolved 5,548 complaints in May, more than the 4,918 new complaints received, leading to a lower overall backlog.
- Rapid Response Times: Entities are averaging a five-day turnaround for Action Taken Reports (ATRs), with first-level reviews being resolved in roughly eight days.
- Robust Review Hierarchy: The SCORES 2.0 framework allows for two distinct levels of review, ensuring investors have multiple opportunities to contest unsatisfactory responses from entities.