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

The Securities and Exchange Board of India (SEBI) has demonstrated significant progress in its investor grievance redressal efforts, resolving a substantial volume of complaints through its digital platform. Recent data reveals a notable decline in the total number of pending grievances as the regulator streamlines its SCORES mechanism.

Significant Reduction in Pending Grievances

In a recent public notice, SEBI revealed that it successfully disposed of 5,548 investor complaints during the month of May. This performance effectively outpaced the inflow of new grievances, which saw 4,918 fresh complaints filed during the same period.

This efficiency has led to a measurable reduction in the total backlog. As of May 31, the number of pending complaints dropped to 5,537, down from 6,167 at the start of the month. While the overall numbers are moving in the right direction, the regulator noted that 10 complaints have remained 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.

Efficiency Metrics and Response Timelines

SEBI’s data highlights the speed at which market entities are interacting with the regulator's digital ecosystem. During April, entities took an average of just five days to submit their Action Taken Reports (ATRs) in response to investor complaints. Furthermore, when complaints moved to a first-level review stage, the average resolution time was recorded at eight days.

It is important to note that the "pending" status in SEBI's records does not always indicate negligence. Some complaints remain listed as pending because the entities have submitted their ATRs within the stipulated timeframe, but the investors have opted to exercise their right to seek a review due to dissatisfaction with the initial response.

Understanding the SCORES 2.0 Redressal Process

Under the enhanced SCORES 2.0 framework, the grievance process is highly structured 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 provides a multi-tier recourse mechanism for investors:

• First-Level Review: If an investor is dissatisfied with the entity's response, they can request a review within 15 days. This is examined by a designated body.
• Second-Level Review: Should dissatisfaction persist, investors have another 15-day window to seek a second review, where SEBI directly examines the matter and submits its own ATR.
• ODR Integration: Complaints are also officially marked as disposed of if the investor chooses to transition the matter to the Online Dispute Redressal (ODR) mechanism.

Key Takeaways

• Improved Efficiency: SEBI resolved 5,548 complaints in May, surpassing the 4,918 new complaints received, leading to a net reduction in the total backlog.
• Rapid Turnaround: Market entities are responding quickly, with an average of five days taken to submit Action Taken Reports (ATRs).
• Robust Recourse: The SCORES 2.0 platform offers a structured multi-level review process, allowing investors to escalate grievances if they are unhappy with initial resolutions.