15th October 2013
Re: Investor Grievance Redressal Mechanism
All Trading Members and Participants/Investors are hereby informed that SEBI vide its Circulars No. CIR/MRD/DSA/03/2012 dated January 20, 2012, CIR/MRD/DSA/24/2010 dated August 11, 2010 and MRD/DoP/SE/Cir-38/2004 dated October 28, 2004 has mandated members to draw their kind attention on the subject cited above.
Further to the above, with a view to streamline and make the investor grievance redressal mechanism at Stock Exchanges more effective, SEBI has issued Circular No. CIR/MRD/ICC/30/2013 dated September 26, 2013 regarding Investor Grievance Redressal Mechanism, which shall come into effect immediately. A copy of the circular is enclosed herewith.
Members’ attention is specifically drawn to the following requirements as mentioned in the above-referred SEBI circular dated 26th September 2013:
Point no. 2 (a) inter alia states that the Member (Stock Broker, Trading Member and Clearing Member) shall provide a dedicated email ID to the stock exchange for this purpose.
Point no. 2 (g) inter alia states that the Stock Exchange shall give a time of 7 days to the Member from the date of signing of IGRC directions as mentioned under sub-para (d) above to inform the Stock Exchange whether the Member intends to pursue the next level of resolution ie. Arbitration.
Point no. 2 (h) inter alia states that in case, the Member does not opt for arbitration, the Stock Exchange shall, release the blocked amount to the investor after the aforementioned 7 days.
Point no. 3 (a) inter alia states that the Members shall convey their intention to Stock Exchanges within 7 days of receipt of the award, as regards whether such Members desire to challenge the arbitration award/appellate arbitration award in Court or not.
Point no. 3 (b) inter alia states that in case the Members do not express their intent to challenge the arbitration award/appellate arbitration award then it would be presumed that Members does not intend to challenge the award and the Stock Exchange shall take further steps accordingly.
Point no. 4 (a) inter alia states that in case the Member has made margin calls to the client and the client has failed to comply with these margin calls, then the contract note issued by Member for transactions owing to non-compliance of such margin calls would bear a remark specifying the same.
Point no. 4 (b) inter alia states that the Member shall maintain a verifiable record of having made such margin calls and that the clients have not complied with the same.
In view of the above, Members are required to specifically put a sign such as “*”against each such trade as mentioned in 4 (a) above and specifically make a remark at the bottom of the contract note stating that such trades were executed due to non-compliance by the client towards margin calls made by the Member.
Members and all participants are requested to take note of the above and the detailed SEBI Circular dated 26th September 2013 for information and necessary action at their end.
For any clarifications, Members may contact the Investor Services Cell of the Exchange and all trading members of the Exchange are also advised to furnish/update their email addresses with the Membership Department of the Exchange for enabling them to comply with the captioned SEBI Circular.