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Sebi issued a round on Thursday on ‘Investor grievances redressal mechanism’ defining the method of criticism administration by listed companies and inventory exchanges. According to the round, inventory exchanges shall levy a fine of ₹1,000 per day per criticism on the listed entity for failure to redress investor complaints inside stipulated time. The depositories may even freeze all the shareholding of promoters in case of non-compliance.
These pointers will come into power on September 1.
Sebi, in its round mentioned that the companies are anticipated to resolve traders complaints inside 30 days from the receipt of such criticism. In case the corporate fails to accomplish that, such direct complaints shall be forwarded to Designated Stock Exchange (DSE) via SCORES.
SCORES is Sebi‘s on-line criticism redressal system.
The round mentioned, for any failure to redress investor grievances pending past 60 days by listed companies, inventory trade shall levy a fine of ₹1,000 per day for non redressal of criticism.
In case if the listed firm fails to pay the penalty and/or resolve the criticism inside 15 days, the inventory trade can ship a reminder to permit 10 extra days to do the needful.
If the corporate nonetheless fails to submit an Action Taken Report (ATR), the depository shall instantly freeze the promoters’ demat acounts, mentioned the round.
Here is the timeline for dealing with of complaints by the listed entities and actions in case of non-compliance, as per the Sebi round.
Stock exchanges is not going to deal with complaints pertaining to dividend and securities transferred to IEPF, pension funds, monopoly and anti-competitive practices, chit funds, insurance coverage companies, housing finance companies, companies the place moratorium order is handed in opposition to the corporate in winding up/ insolvency proceedings and Companies underneath liquidation and official liquidator has been appointed.
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