What’s Sebi’s score: Increasing investor complaints test regulator’s redressal system
Subscribe to enjoy similar stories. Mumbai: The rising interest in India’s equity markets has brought with it an attendant problem the regulator is grappling with—a pile-up of investor complaints related to issues such as unauthorised trading, delayed payments, discrepancies in account statements, and mis-selling.
The Securities and Exchange Board of India (Sebi) has resolved about 145,000 complaints since October 2021 when the data is available, but the number of unresolved complaints has been creeping up, indicating potential structural flaws in the system. Launched in 2011, the Sebi Complaints Redressal System (Scores) is a web-based, centralized platform to receive investor complaints on issues with listed companies, market intermediaries, and recognized market institutions.
But experts say Scores faces challenges in terms of efficiency and timely resolution of complaints. Sebi did not respond to Mint’s queries.
“The stock market has become so active, with many companies listed on various exchanges and numerous filings, that tracking compliance and penalties has become increasingly difficult," said Ketan Mukhija, senior partner at Burgeon Law. Also read | Why you cannot complain to Sebi about unregistered investment advisors Although an online complaint redressal system is helpful, a lack of clarity on how soon pending complaints will be addressed leaves investors unclear about their recovery options, he said.
Among the common complaints on Score, according to Mukhija, are issues with registered brokers or advisers, especially those peddling advice through informal channels such as WhatsApp groups—an issue Sebi has repeatedly flagged. “When things go wrong, investors often turn to Scores to lodge their grievances,"
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