Investor Redressal Mechanism
Grievance Redressal Mechanism
Level 1 – Approach the Stock Broker at the designated Investor Grievance e-mail ID: email@example.com of the stock broker. The Stock Broker will strive to redress the grievance immediately, but not later than 30 days of the receipt of the grievance.
Level 2 – Approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange. Complaints Resolution Process at Stock Exchange explained graphically:
Timelines for complaint resolution process at Stock Exchanges against stock brokers
|S. No.||Type of Activity||Timelines for activity|
|1||Receipt of Complaint||Day of complaint (C Day).|
|2||Additional information sought from the||C + 7 Working days.|
|investor, if any, and provisionally forwarded to stock broker.|
|3||Registration of the complaint and forwarding to the||C+8 Working Days i.e. T day.|
|4||Amicable Resolution.||T+15 Working Days.|
|5||Refer to Grievance Redressal||T+16 Working Days.|
|Committee (GRC), in case of no amicable resolution.|
|6||Complete resolution process post GRC.||T + 30 Working Days.|
|7||In case where the GRC Member requires additional information, GRC order shall be completed within.||T + 45 Working Days.|
|8||Implementation of GRC Order.||On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued|
|immediately or as per the directions given in GRC order.|
|9||In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration|
|Within 7 days from receipt of order|
|10||Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor.|
|If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs|
|11||Within 6 months from the date of GRC recommendation|
|Stock Broker shall file for arbitration|
|12||The GRC order amount shall be released to|
|In case the stock broker does not file for arbitration within 6 months||the investor after adjusting the amount released as interim relief, if any.|
Handling of Investor's claims / complaints in case of default of a Trading Member / Clearing Member (TM/CM)
Following steps are carried out by Stock Exchange for benefit of investor, in case stock broker defaults:
- Circular is issued to inform about declaration of Stock Broker as Defaulter.
- Information of defaulter stock broker is disseminated on Stock Exchange website.
- Public Notice is issued informing declaration of a stock broker as defaulter and inviting claims within specified period.
- Intimation to clients of defaulter stock brokers via emails and SMS for facilitating lodging of claims within the specified period.
Following information is available on Stock Exchange website for information of investors:
- Norms for eligibility of claims for compensation from IPF.
- Claim form for lodging claim against defaulter stock broker.
- FAQ on processing of investors’ claims against Defaulter stock broker.
- Provision to check online status of client’s claim.
Level 3 – The complaint not redressed at Stock Broker / Stock Exchange level, may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI)
Still need help?Create Ticket