Categories
Economics

SEBI introduces SCORES 2.0 to strengthen investor redressal

The Securities and Exchange Board of India (SEBI) has launched the enhanced version of the SEBI Complaint Redress System (SCORES 2.0), which represents a significant improvement in the securities market’s investor complaint redressal procedure. 

What is the SCORES 2.0?

  • SCORES 2.0 is the improved version of the SEBI Complaint Redress System (SCORES) launched by the Securities and Exchange Board of India (SEBI).
  • SCORES is an online tool meant to help investors file and resolve concerns in the securities market.
  • Complaints can be filed for any issues covered by the 
  1. SEBI Act, 1992
  2. Securities Contract Regulation Act, 1956
  3. Depositories Act, 1966
  4. Companies Act, 2013

Complaints on SCORES 2.0 can be launched against:

  1. Listed companies / registrar & transfer agents
  2. Brokers / stock exchanges
  3. Depository participants / depository
  4. Mutual funds
  5. Portfolio Managers
  6. Other entities (KYC Collective investment scheme, Merchant banker, Credit rating, Foreign institutional investor etc.)

Features of SCORES 2.0:

  1. SCORES 2.0 offers shorter and standardised timescales for handling investor grievances, with a maximum redressal duration of 21 calendar days from complaint receipt.
  2. Auto-Routing and Escalation: The updated version has an auto-routing mechanism that quickly sends complaints to the appropriate regulated entity. Furthermore, it establishes a two-tier review mechanism, with complaints being reviewed first by the designated body and then by SEBI if investors are dissatisfied with the resolution provided.
  3. Integration with KYC Database: SCORES 2.0 is completely integrated with the KYC Registration Agency database, making it easier for investors to register on the platform.
  4. Enhanced Efficiency: By incorporating features such as auto-routing, auto-escalation, and tougher monitoring protocols, SCORES 2.0 intends to improve the efficiency and effectiveness of the investor complaint resolution process.

Significance of SCORES 2.0

  • SEBI’s SCORES 2.0 initiative intends to improve regulatory efficiency and transparency, leading to a more accountable and responsive market ecosystem through tougher timeframes and supervision procedures.
  • Technological Advancements: The incorporation of advanced technological elements, including as auto-routing and KYC database connection, demonstrates SEBI’s proactive attitude to using digital advances to modernise regulatory procedures and services. 
Source: https://m.economictimes.com/markets/stocks/news/sebi-launches-scores-2-0-to-strengthen-investors-complaint-redressal-system/articleshow/108947507.cms

Leave a Reply

Your email address will not be published. Required fields are marked *

JOIN OUR NEWSLETTER
And get notified everytime we publish a new blog post.