Sebi directs exchanges to constitute grievance redressal panel

Market regulator Sebi has directed the stock exchanges to constitute special committees for redressal of investor grievances, a move intended to facilitate early resolution of complaints.

In a notification, the Securities and Exchange Board of India said the Investor Grievance Redressal Committees (IGRC) shall comprise independent persons with law, finance, accounts, economics, management or administration qualifications and experience in financial services.

"In light of the concerns expressed by investors and to facilitate early redressal of investor grievances, it has been decided to mandate that stock exchanges having nationwide terminals, functional stock exchanges having trading volumes... shall constitute IGRC at every investor service centre," it said.

This will impact exchanges like the NSE, BSE and MCX-SX, who have nationwide terminals.

"The IGRC shall comprise of a single person for claims up to Rs 25 lakh, whereas, for claims above Rs 25 lakh, the IGRC shall comprise three persons.

"The IGRC shall comprise independent persons with qualifications in the area of law, finance, accounts, economics, management or administration and experience in financial services, including the securities market," Sebi said.

It added that in case of committees with three members, at least one of them has to be a technical expert for handling complaints related to technology issues such as internet-based trading. Members of the IGRC would not be allowed to be associated with a trading member in any manner.

"... Apart from the investor services centres that are currently operating in four metro cities (viz. New Delhi, Mumbai, Chennai and Kolkata), stock exchanges having nationwide terminals shall open investor services centres in other large cities in a time-bound manner.

"A list of places where such centres are proposed to be opened is to be submitted to Sebi immediately and the progress of implementation should be reported to Sebi on a monthly basis in the respective monthly development reports," the regulator said.

Sebi had in 1997 mandated all stock exchanges to open at least one investor service centre for the benefit of the public and investors.

Meanwhile, in another notification, Sebi announced that the arbitration committee or panel of the exchanges shall not comprise any trading members.

"It has now been decided to do away with the representation of trading members on arbitration committee/panel of all stock exchanges. It is, henceforth, stipulated that the arbitration committee/panel shall not comprise any trading members," it said.

As per earlier rules, 20 per cent of the members of arbitration committees of exchanges could be trading members.

Bats for grievances redressal panel

Market regulator Sebi has directed the stock exchanges (SEs) to constitute special committees for redressal of investor grievances, a move intended to facilitate early resolution of complaints.

In a notification, the Securities & Exchange Board of India said the Investor Grievance Redressal Committees (IGRC) shall comprise independent persons with law, finance, accounts, economics, management or administration qualifications and experience in financial services.

“In light of the concerns expressed by investors and to facilitate early redressal of investor grievances, it has been decided to mandate that stock exchanges having nationwide terminals, functional stock exchanges having trading volumes... shall constitute IGRC at every investor service centre,” it said. This will impact exchanges like the NSE, BSE and MCX-SX, who have nationwide terminals.