A total of 3,079 complaints against companies and market intermediaries have been disposed of through the Securities and Exchange Board of India’s (SEBI) SCORES platform recently.
GS III: Indian Economy
Dimensions of the Article:
- About SCORES Platform
- Types of Complaints Not Covered by SCORES Portal
- Securities and Exchange Board of India (SEBI)
About SCORES Platform:
- SCORES is a centralized grievance redress system launched by SEBI in June 2011.
- It is a web-based platform that allows investors to lodge and track complaints online.
- The system enables market intermediaries and listed companies to receive and redress investor complaints.
- All complaint-related activities, from lodging to closure by SEBI, are conducted online in an automated environment.
- Complainants can view the status of their complaints online.
Scope of Complaints:
- Complaints can be lodged on SCORES for issues covered under various acts and regulations, including:
- SEBI Act
- Securities Contract Regulation Act
- Depositories Act
- Companies Act, 2013
Entities Handled by SEBI:
- SEBI handles complaints against various entities, including:
- Listed companies / registrar & transfer agents
- Brokers / stock exchanges
- Depository participants / depository
- Mutual funds
- Portfolio Managers
- Other entities such as KYC collective investment schemes, merchant bankers, credit rating agencies, foreign institutional investors, etc.
Types of Complaints Not Covered by SCORES Portal:
- Bank deposits and banking, including issues related to non-banking financial companies (NBFCs) – RESERVE BANK OF INDIA (RBI)
- Fixed deposits with manufacturing companies, unlisted companies, and matters related to company mismanagement, financial performance, shareholders’ interest, etc. – MINISTRY OF CORPORATE AFFAIRS
- Insurance companies, brokers, agents, and insurance products and services – INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)
- Commodities – FORWARD MARKETS COMMISSION
- Pension funds – PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PFRDA)
- Monopoly and anti-competitive practices – COMPETITION COMMISSION OF INDIA (CCI)
- Housing finance companies – NATIONAL HOUSING BANK
Securities and Exchange Board of India (SEBI):
- Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market in India.
- It was established in 1988 and received statutory powers in 1992 through the SEBI Act.
- SEBI’s primary objective is to protect the interests of investors and promote the development and regulation of the securities market.
- It regulates various entities including stock exchanges, brokers, sub-brokers, portfolio managers, depositories, custodians, and investment advisers.
- SEBI formulates rules and regulations to govern the securities market and ensures compliance by market participants.
- It oversees the issuance and trading of securities, such as equities, bonds, and derivatives.
- SEBI promotes transparency and fair practices in the securities market through disclosure requirements and corporate governance norms.
- It enforces regulations against market manipulation, insider trading, and fraudulent activities to maintain market integrity.
- SEBI conducts investigations and takes enforcement actions against violations of securities laws.
- The Investor Education and Protection Fund (IEPF) is managed by SEBI to promote investor awareness and protection.
- SEBI works in collaboration with other regulatory bodies and international organizations to strengthen the securities market ecosystem.
-Source: Business Standards