August 14, 2020
Summary of the circular issued by SEBI on 13/08/2020
SEBI issues SOP for non-redressal of grievances by listed companies and handling of SCORES complaints by Stock Exchanges(SEs) w.e.f. 01/09/2020
1. Applicability of the circular: The procedures and actions specified for specified complaints such as non-receipt of bonus, dividend, interest on securities etc, as listed in the Annexure 2 of the circular.
2. Complaint Redressal Procedure:
(i) Investors are advised to initially lodge complaints directly with the respective companies, which if not addressed within 30 days from the date of receipt of such complaint, shall be forwarded to Designated Stock Exchange (DSE) through SCORES.
(ii) The company is required to redress the complaint and submit an Action Taken Report (ATR) within 30 days from the date of receipt of such complaint, failing which a reminder shall be issued by DSE to the listed company through SCORES directing expeditious redressal of the grievance within another 30 days.
(iii) If the ATR is satisfactory, SE shall submit the same to SEBI. Any failure by the company in redressing the complaint within 60 days from the date of receipt of complaint will result in levy of fine, to be paid within 15 days from the date of notice of such levy along with the ATR.
(iv) If the entity fails to pay the fine under point (iii), notice shall be sent to its Promoters to remit the fine along with ATR within 10 days of such intimation, failing which entire shareholding of the promoters and promoter group in such entity as well as all other securities held in the demat account of the promoter and promoter group shall be frozen.
(v) If all options are exhausted by the SE and if number of pending complaints exceed 20 or the value involved is more than Rs. 10 lakhs, stock exchanges shall forward the complaints against such listed companies to SEBI for further action, if any.
(vi) Timelines for handling of complaints by the SEs and actions in case of non-compliances are prescribed in Annexure 1 to the circular.
3. Computation of Fine: Fine shall be computed and levied on a monthly basis, till the date of redressal of grievance /filing of ATR by the company or till the company is compulsorily delisted, whichever is earlier.
4. The circular also prescribes the post redressal actions to be taken by the SEs.
This circular is integrated in our free-to-use website ca2013.com for your ready reference.