During the post-liberalisation process of the economy, significant reform measures have resulted the investors' grievances in many fold. How would you help them in the redressal of their grievances?

CS Professional · Capital Commodity and Money Market · PYQS · June 2015
During the post-liberalisation process of the economy, significant reform measures have resulted the investors' grievances in many fold. How would you help them in the redressal of their grievances?

Answer & Explanation:

The following are the major initiatives available for grievance redressal of investors : Investors who are not satisfied with the response to their grievances received from the brokers/Depository Participants/listed companies, can lodge their grievances with the Stock Exchanges or Depositories. In case of unsatisfactory redressal, BSE/NSE has designated Investor Grievance Redressal Committees (IGRCS), or Regional Investor Complaints Resolution Committees (RICRC), this forum acts as a mediator to resolve the claims, disputes and differences between entities and complainants. In order to afford adequate protection to the investors, provisions have been incorporated in different legislations such as the Companies Act, Securities Contracts (Regulation) Act, Consumer Protection Act, Depositories Act, and Listing Agreement of the Stock Exchanges supplemented by many guidelines, circulars and press notes issued by the Ministry of Finance, Ministry of Company Affairs and SEBI from time to time. SEBI has constituted the Investor Education and Protection Fund (IPEF) under the aegis of SEBI (Investor Protection and Education Fund) Regulations, 2009. The fund shall be utilised for the purpose of protection of investors and promotion of investor education and awareness in accordance with these regulations. The Ministry of Corporate Affairs has established the Investor Education and Protection Fund (IEPF) under the Companies Act for promotion of investors' awareness and protection of the interests of investors. The Ministry of Corporate Affairs has also laid down rules for administration of IEPF. SEBI has commenced processing of investor grievances against the intermediaries in a centralized web-based complaints redressal system, SEBI Complaints Redress System (SCORES) at (http://scores.gov.in). This enables the market intermediaries and listed companies to receive the complaints online from investors, redress such complaints and report redressal online.

Topics: Capital Market

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