Executive Summary:
This SEBI circular mandates that all recognized stock exchanges (excluding commodity derivatives exchanges, depositories, and clearing corporations) must disclose data on complaints received and their resolution on their websites to enhance transparency in investor grievance redressal. The disclosure should follow the format provided in Annexure A and be updated by the 7th of each succeeding month, effective from January 1, 2022. Stock exchanges must also amend their bylaws accordingly and communicate implementation status to SEBI.
Key Points / Main Content:
Disclosure Requirements:
Stock exchanges must disclose data on complaints received against them and their resolution on their websites.
The disclosure should be made by the 7th of the succeeding month.
The format for disclosure is provided in Annexure A of the circular.
The disclosure requirements are in addition to those already mandated by SEBI.
Implementation Details:
The provisions of the circular are effective from January 1, 2022.
Stock exchanges must amend their relevant byelaws, rules, and regulations to comply with the circular.
Stock exchanges must communicate the status of implementation to SEBI through the Monthly Development Report (MDR).
Regulatory Basis:
The circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 10 of the Securities Contracts Regulation Act, 1956.
Impact Analysis:
Stock Exchanges (excluding Commodity Derivatives Exchanges, Depositories, Clearing Corporations):
Impact: Required to disclose data on complaints received and their resolution on their websites, following the specified format and timeline. They are also required to amend internal bylaws and regulations to reflect the new disclosure requirements.
Action Required: Implement the necessary changes to their systems to collect and disclose the required data. Amend relevant byelaws, rules, and regulations. Report the status of implementation to SEBI through the MDR.
Investors:
Impact: Enhanced transparency in the Investor Grievance Redressal Mechanism.
Action Required: No direct action required.
SEBI:
Impact: Responsible for overseeing the implementation of the circular and ensuring compliance by the stock exchanges.
Action Required: Monitor the disclosures made by the stock exchanges and take appropriate action in case of non-compliance.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body in India for the securities market, also referred to as SEBI.
Stock Exchanges: Refers to all recognized stock exchanges in India, excluding Commodity Derivatives Exchanges, Depositories, and Clearing Corporations, which are directed to disclose data on complaints.
Investor Grievance Redressal Mechanism: The system for addressing and resolving complaints from investors, which the circular aims to make more transparent.
SEBI Act 1992: The Securities and Exchange Board of India Act 1992, which grants SEBI the power to regulate the securities market and protect investor interests.
Securities Contracts Regulation Act, 1956: Act that along with the SEBI Act 1992, empowers SEBI to issue the circular for protecting investors and regulating the securities market.
Monthly Development Report MDR: A report through which Stock Exchanges communicate the implementation status of the circular's provisions to SEBI.
SEBI SCORES: A source of complaints from Investors to be disclosed
Commodity Derivatives Exchanges: Specifically excluded from the disclosure requirements outlined in the circular.
भारतीय प्रततभूतत और तितिमय बोर्ड
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD1/MRD1_ICC1/P/CIR/2021/664 November 23, 2021
To,
The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges (excluding Commodity Derivatives
Exchanges)/Depositories/Clearing Corporations
Dear Sir / Madam,
Sub: Disclosure of Complaints against the Stock Exchanges (excluding Commodity
Derivatives Exchanges)/Depositories/Clearing Corporations
1. In order to bring about transparency in the Investor Grievance Redressal Mechanism, it has
been decided that all the Stock Exchanges (excluding Commodity Derivatives
Exchanges)/Depositories/Clearing Corporations shall disclose on their websites, the data on
complaints received against them and redressal thereof, latest by 7th of succeeding month,
as per the format enclosed at Annexure - ‘A’ to this circular.
2. These disclosure requirements are in addition to those already mandated by SEBI.
3. The provisions of this circular shall come into effect from January 01, 2022.
4. The Stock Exchanges (excluding Commodity Derivatives Exchanges)/Depositories/Clearing
Corporations are advised to:
4.1. Make necessary amendments to the relevant bye-laws, rules and regulations.
4.2. Communicate to SEBI, the status of the implementation of the provisions of this circular
through the Monthly Development Report (MDR).
5. This circular is issued in exercise of the powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act 1992 read with Section 10 of the Securities
Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.
6. This circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Nirdosh Rajan Minz
Deputy General Manager
Market Regulation Department
Email: nirdoshrm@sebi.gov.in
Page 1 of 2Annexure - A
Data of complaints against the Stock Exchanges (excluding Commodity Derivatives
Exchanges)/Depositories/Clearing Corporations to be displayed on their websites-
Format for disclosing data of complaints on their website:
Data for the month ending
Sr. Received Carried Received Total Resolved Pending at the end of the Average
No. from forward during the Complaints during the month** Resolution
from month month* time^
previous
month
Pending for Pending
less than 3 for more
months than 3
months
1 2 3 4 5 6 7 8
1 Directly from
Investors
2 SEBI
(SCORES)
3 Members
4 Other
Sources (if
any)
Grand Total
*Should include complaints of previous months resolved in the current month, if any.
**Should include total complaints pending as on the last day of the month, if any.
^ Average resolution time is the sum total of time taken to resolve each complaint in the current month divided by total number of
complaints resolved in the current month.
Month-wise data for the current financial year
Sr. No. Month Carried forward from previous month Received Resolved Pending
1 2 3 4 5 6
1 April
2 May
3 June
4 July
Grand Total
Year-wise data (for 5 years on rolling basis)
Sr. No. Year Carried forward from previous year Received Resolved Pending
1 2 3 4 5 6
1 2020-21
2 2021-22
3 2022-23
4 2023-24
5 2024-25
Grand Total
Page 2 of 2