Investors approaching listed companies with complaints now have a new reason to cheer with the markets watchdog directing all these companies to redress such complaints within a month using a centralised online complaints redressal system. The regulator has also warned that companies failing to comply with the directive would be penalised.

According to a circular issued by the Securities and Exchange Board of India (Sebi) on Wednesday, “All listed companies are required to redress the grievances of investors and inform them within 30 days of the receipt of the complaints.”

The regulator has made it mandatory for companies to redress complaints only using a centralised web-based complaints redress system called SCORES (Sebi Complaints Redressal System), which it had launched in June 2011. The portal, which was developed by the National Informatics Centre, would act as a one-stop destination for investors to lodge complaints against listed companies and track their progress from anywhere.

“All the activities starting from lodging of a complaint till its disposal by Sebi would be carried online in an automated environment and the status of every complaint can be viewed online at any time from anywhere,” Sebi had said at the launch of the portal.

The move comes as a respite for investors who had to wait endlessly for their complaints to be addressed by companies. Most of the times, complaints went unnoticed as they did not reach the right authorities leaving the investors disgruntled. The SCORES platform was created to “expedite disposal of investors’ complaints as this would obviate the need for physical movement of complaints and the possibility of loss, damage or misdirection of the complaints would be avoided. It would facilitate easy retrieval and tracking of complaints at any time,” Sebi had said.

Each of the listed companies has been provided with a unique SCORES user ID and password using which they can access complaints addressed to them. However, companies which are yet to get their SCORES user ID and password are required to send their details in a particular format specified by SEBI and obtain the same within the coming 30 days. “Failure to obtain the SCORES users ID and password within 30 days of issue of this circular would not only be deemed as non-redressal of investor grievances but also indicate willful avoidance of the same,” the circular further read.
Once complaints are lodged on the platform, companies are required to provide solutions and file Action Taken Reports (ATRs) under SCORES within one month and inability to do so would attract penalties. “Companies failing to comply with the directive will be penalised and the penalty will be decided by the adjudicating officer on a case to case basis,” a Sebi official said.