Aim: To protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Result/Impact: SEBI has prescribed the investor grievance redressal mechanism in its circular dated 06 Nov, 2020, in furtherence to the same, SEBI has specified following changes:
1. The time period for availing the arbitration mechanism of stock exchange for settlement of complaints (for any dispute between the trading member and the client relating to or arising out of the transactions in Stock Exchange, which is of civil nature), in case the complainant is not satisfied with the recommendation of Investor Grievance Redressal Mechanism (IGRC), has been reduced from 6 to 3 months; and
2. Limitation act has been made applicable in case arbitration application has been received without going through the IGRC mechanism.
Source: SEBI Circular No. SEBI/HO/MIRSD/DOS3/P/CIR/2022/78 dated June 3, 2022
Reference: SEBI Circular No. SEBI/HO/MIRSD/DOC/CIR/P/2020/226 dated November 6, 2020