Sebi outlines grievance redressal mechanism
Market regulator Sebi on Friday released a fresh set of information for new investors on redressal mechanism for complaints related to price manipulation, insider trading and other issues.
According to the fresh set of information, if an investor has grievances against a listed company or intermediary registered with Sebi, he/she should first approach the concerned company or intermediary against whom he has complaints.
In case the person is not satisfied with their response, he may approach Sebi.
The information is part of the revised instruction form book issued by Depository Participants to investors.
Depository is an organisation where the securities of a shareholder are held in the electronic form and Depository Participant is an investor's representative in the depository system who maintains securities account balances.
Besides, investors can also approach Sebi about compalints related to KYC Registration Agency (KRA)- that conduct Know Your Client (KYC) related functions on behalf of various market entities - and Alternative Investment Fund (AIF), which are funds incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.
Other complaints relates to venture capital funds, Foreign Institutional Investors (FII), merchant bankers, credit rating agencies, collective investment schemes, debenture trustees, underwriters and custodian of securities.
Sebi said an investor can reach out to the regulator for grievances against a listed company on issues like refund, allotment, bonus, dividend, rights, redemption, prelisting offer documents of shares, debentures and bonds, delisting of securities, buyback of securities, corporate governance and listing conditions.
The regulator advised depositories to make amendments to the relevant bye-laws, rules and regulations for the implementation the new rules and disseminate the same information on their website.
