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, successfully disposing of a substantial volume of complaints in May. Through its centralized SCORES platform, the regulator is actively streamlining how market participants resolve disputes with financial entities.

Robust Resolution Rate in May

According to recent data released by SEBI, the regulator's online platform, SCORES, saw a high volume of activity during the month of May. While the platform received 4,918 fresh complaints, it managed to resolve a higher number of cases, totaling 5,548 resolutions.

This efficient handling of grievances led to a noticeable reduction in the total backlog. The number of pending complaints dropped from 6,167 at the start of the month to 5,537 by May 31. This trend highlights the regulator's commitment to maintaining a lean and responsive grievance ecosystem for retail and institutional investors alike.

Efficiency Metrics and Pending Cases

Efficiency remains a core metric for SEBI's oversight. Data indicates that entities took an average of just five days to submit their Action Taken Reports (ATRs) in April. Furthermore, the average resolution time for complaints requiring a first-level review was recorded at eight days.

Despite this efficiency, some delays persist. As of the end of May, 10 complaints have been pending for more than three months. These specific cases involve entities such as KFin Technologies Pvt Ltd, Secur Credentials Ltd, and Eastern Investments Ltd. It is important to note that the "pending" status often includes cases where an entity has submitted its ATR, but the investor has opted to seek a review because they remain dissatisfied with the initial response.

The SCORES 2.0 Redressal Workflow

Under the enhanced SCORES 2.0 framework, SEBI has implemented a structured, time-bound process to ensure accountability. When a complaint is filed, it is automatically forwarded to the concerned entity, which is mandated to submit an ATR within 21 days.

The platform provides a multi-tier recourse system for investors:

  • First-Level Review: If the investor is unsatisfied with the entity's response, they can request a review within 15 days. This is then examined by a designated body.
  • Second-Level Review: If dissatisfaction persists, investors have another 15 days to seek a second-level review. In these instances, 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 Disputes Redressal (ODR) mechanism.

Key Takeaways

  • Improved Backlog: SEBI successfully resolved 5,548 complaints in May, reducing the total pending cases from 6,167 to 5,537.
  • Fast Response Times: Entities are averaging five days to submit Action Taken Reports, while first-level reviews are being resolved in eight days.
  • Tiered Recourse: The SCORES 2.0 system offers a clear, time-bound pathway for investors to escalate grievances through two levels of review if initial responses are unsatisfactory.