₹1,000 FINE PER DAY IF COMPANIES FAIL TO REDRESS INVESTOR COMPLAINTS IN LISTEDCOMPANIES: SEBI
Sebi issued a circular on Thursday on ‘Investor grievances redressal mechanism’ defining the process of complaint management by listed companies and stock exchanges. According to the circular, stock exchanges shall levy a fine of ₹1,000 per day per complaint on the listed entity for failure to redress investor complaints within stipulated time. The depositories can even freeze the entire shareholding of promoters in case of non-compliance.
These guidelines will come into force on September 1.
Sebi, in its circular said that the companies are expected to resolve investors complaints within 30 days from the receipt of such complaint. In case the company fails to do so, such direct complaints shall be forwarded to Designated Stock Exchange (DSE) through SCORES.
SCORES is Sebi’s online complaint redressal system.
The circular said, for any failure to redress investor grievances pending beyond 60 days by listed companies, stock exchange shall levy a fine of ₹1,000 per day for non redressal of complaint.