Applicability:

  1. Listed Companies or
  2. RTAs where they are offering services to shareholder(s)/ investor(s) on behalf of listed companies (listed company shall necessarily be added as a party)

Aim: To protect the interests of investors in securities and to promote the development of and to regulate the securities market

Result/Impact:

Regulation 40 of SEBI LODR 2015 & regulations of the stock exchanges provide for dispute resolution under the stock exchange arbitration mechanism for disputes between a listed company and its shareholder(s)/ investor(s).
SEBI in consultation with STXs and RTAs, has come up with Standard Operating Procedure for operationalizing the resolution all disputes pertaining to investor services such as transfer/transmission of shares, demat/remat, issue of duplicate shares, transposition of holders, etc. and investor entitlements like corporate benefits, dividend, bonus shares, rights entitlements, credit of securities in public issue, interest /coupon payments on securities, etc.

Source: SEBI Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/76 dated May 30, 2022

Reference: SEBI Circular No.  SEBI/HO/CFD/SSEP/CIR/P/2022/48 dated April 08, 2022