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Investor Redressal Mechanism

Modified on: Wed, 29 Jun, 2022 at 11:19 AM

Grievance Redressal Mechanism

 

Level 1 – Approach the Stock Broker at the designated Investor Grievance e-mail ID: ig@naviamarkets.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 ActivityTimelines for activity
1Receipt of ComplaintDay of complaint (C Day).
2Additional information sought from theC + 7 Working days.
investor,       if     any,      and      provisionally forwarded to stock broker.
3Registration of the complaint and forwarding to the C+8 Working Days i.e. T day.
stock broker.
4Amicable Resolution.T+15 Working Days.
5Refer          to        Grievance            RedressalT+16 Working Days.
Committee (GRC), in case of no amicable resolution.
6Complete        resolution       process        post GRC.T + 30 Working Days.
7In case where the GRC Member requires additional information, GRC order shall be completed within.T + 45 Working Days.
8Implementation 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.
9In 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 monthsthe 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) 

@ https://scores.gov.in/scores/Welcome.html

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