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    HomeBusinessSebi strengthen investor grievance redressal mechanism

    Sebi strengthen investor grievance redressal mechanism

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    The new mechanism will come into effect from July 1, the Securities and Exchange Board of India (Sebi) said in a circular.

    Capital markets regulator Sebi on Friday came out with a new framework for investor grievance redressal mechanism as part of its effort to strengthen the process.

    The new mechanism will come into effect from July 1, the Securities and Exchange Board of India (Sebi) said in a circular.

    For any dispute between the member and client relating to the transactions in a stock exchange, which is of civil nature, the complainant or member is required to first refer the complaint to the investor grievance redressal mechanism (IGRC) and/or to the arbitration mechanism provided by the bourse before resorting to other remedies available under any other law, Sebi said.

    For the removal of doubts, the regulator has clarified that the sole arbitrator or the panel of arbitrators appointed under the stock exchange arbitration mechanism may consider any claim relating to any dispute between a stockbroker and client, arising out of the transactions in a stock exchange, and shall always be deemed to have the competence to rule on its jurisdiction.

    A complainant or member, who is not satisfied with the recommendation of the IGRC can avail of the arbitration mechanism of the stock exchange for settlement of complaints within three months from the date of IGRC recommendation. The time period of three months will be applicable only for the cases where the IGRC recommendation is being challenged.

    For any arbitration application received without going through the IGRC mechanism, the time period of three months will not apply, and for such cases, the limitation period for filing arbitration will be governed by the law of limitation.

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