What does the latest Sebi’s master circular say about investors’ grievance against stock brokers?

Capital markets regulator Securities Exchange Board of India (Sebi) has released a master circular dated June 17 for stockbrokers. This is the first such circular after the last one on August 9, 2024. This circular deals with an array of concerns relating to stockbrokers including their registration, supervision, investor grievance, tax compliance, change in status and others.

Can investors file complaints against their brokers? If investors are facing any trouble with their stockbroker, they can surely file a complaint. And the newly released master circular says that stockbrokers are supposed to provide an exclusive email id for redressal of investor complaints.

All the registered stockbrokers are supposed to designate an e-mail ID of the grievance redressal division/compliance officer exclusively for the purpose of registering complaints by investors, says the Sebi circular.

Stockbrokers are also meant to show the email ID and other relevant details – that too prominently on their portals and in the various materials/pamphlets/advertisement campaigns initiated by them for creating investor awareness, the circular says further.

Complaint with the concerned stock exchange

Complaints against stockbrokers can be filed via an existing complaints redress system known as SCORES. One of the key features of this system is that all the complaints have centralised database and they can be moved online to the concerned listed companies.

The investor grievances received by SEBI against stockbrokers are taken up electronically with the concerned Stock Exchange(s) through SCORES. The stock exchange(s) in turn, take up the matter with the concerned stockbrokers.

Stock Exchanges will ensure that the investor complaints will be resolved within fifteen working days from the date of receipt of the complaint. Additional information, if any, required from the complainant, shall be sought within seven working days from the date of receipt of the complaint. With regards to SCORES, Sebi had released a circular on November 7, 2022, which can be accessed here.

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