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

The Securities and Exchange Board of India (SEBI) continues to streamline investor grievance redressal, reporting a significant surge in resolved cases through its digital platform. Recent data reveals a proactive approach by the regulator to clear backlogs and enhance transparency within the capital markets.

Efficiency Gains in Grievance Redressal

In a significant boost to investor confidence, SEBI disposed of 5,548 complaints through its SEBI Complaints Redress System (SCORES) platform during the month of May. During the same period, the platform received 4,918 fresh complaints. This high resolution rate has effectively lowered the total number of pending complaints from 6,167 to 5,537 as of May 31.

The data also highlights the efficiency of the entities involved. In April, regulated entities took an average of just five days to submit their Action Taken Reports (ATRs). Furthermore, the average resolution time for first-level review complaints was recorded at eight days, showcasing a swift turnaround in addressing investor concerns.

Addressing Long-Pending Complaints

While the overall numbers show progress, SEBI's data indicates that certain issues require deeper scrutiny. As of the end of May, 10 complaints remained pending for more than three months. These lingering cases involve specific entities, including KFin Technologies Pvt Ltd, Secur Credentials Ltd, and Eastern Investments Ltd.

It is important for investors to note that the "pending" status does not always imply inaction. The figure includes complaints where entities have already submitted their ATRs within the stipulated timeframe, but the cases remain open because investors have exercised their right to seek a review due to dissatisfaction with the initial response.

The SCORES 2.0 Framework and Review Process

Under the enhanced SCORES 2.0 mechanism, SEBI has implemented a structured, time-bound workflow to ensure accountability. Once a complaint is lodged, it is automatically forwarded to the concerned entity, which is mandated to submit an ATR to the investor within 21 days.

The platform offers a multi-tiered recourse system for dissatisfied investors:

  • First-Level Review: If the initial response is unsatisfactory, investors can seek a review within 15 days. This is examined by a designated body.
  • Second-Level Review: If the investor remains dissatisfied after the first review, they can seek a second-level review within another 15 days. In this instance, SEBI directly examines the matter and submits the final ATR.

Additionally, complaints are officially marked as disposed of if investors choose to transition their grievances to the Online Dispute Redressal (ODR) mechanism.

Key Takeaways

  • Improved Resolution Rates: SEBI resolved 5,548 complaints in May, outstripping the 4,918 new complaints received, leading to a reduction in the total pending backlog.
  • Strict Timelines: Under SCORES 2.0, entities have 21 days to respond to complaints, while investors have 15-day windows to seek first and second-level reviews.
  • Systemic Accountability: While most issues are resolved quickly, SEBI continues to monitor long-standing complaints involving specific entities like KFin Technologies and Secur Credentials.