According to a press release issued on Monday, capital markets regulator Sebi is considering introducing an alternate dispute resolution mechanism to provide an effective mechanism for resolving disputes between investors and regulated entities. Sebi published the 'Investor Charter' for securities markets in November 2021 to supplement its efforts to protect investors' interests, promote market transparency, and increase investor awareness, trust, and confidence. Several steps have been taken since then to implement the charter; according to the regulator.Sebi has developed separate charters for various intermediaries' investor-related activities in consultation with the respective entities. The charter contains information about the various services provided by intermediaries to investors, their timelines, the importance of investors preserving relevant documents, the investor grievance Redressal mechanism, and so on. Concerning Sebi's charter, efforts have been made to improve the effectiveness of the investor grievance redressal mechanism. The regulator noted that it has been publishing the status of the resolution of investor grievances received in SCORES (Sebi Complaints Redress System) on its website on a monthly basis. Details of investor grievances that have been pending with various intermediaries for more than three months are also being published. "In the event that Sebi receives a large number of/repeated complaints on any issue, the root causes are investigated and, if necessary, appropriate policy changes are implemented to address the issue," the regulator explained. Following such an analysis, Sebi has taken a number of recent policy initiatives, including amendments to the Investor Protection Fund or Investor Service Fund and related matters to broaden the scope of dispute resolution. Furthermore, "Sebi is also investigating, in consultation with regulated entities, the possibility of introducing alternate dispute resolution mechanisms in various agreements (wherever possible) between the regulated entities and their clients," according to the regulator.
top of page
bottom of page