In the dynamic landscape
of India’s financial markets, the role of trustees is pivotal in maintaining
the integrity and efficiency of financial transactions and ensuring the protection of investor
interests. With the Securities and Exchange Board of India (SEBI) continuously updating its
regulatory framework, particularly with the recent directives aimed at enhancing the grievance
redressal mechanism through the SCORES platform, there is a growing need for robust industry
representation that can keep pace with regulatory expectations and market needs.
The SEBI Circular dated September 20, 2023, emphasizes the need for a robust mechanism to
handle
investor grievances through the SEBI Complaints Redress System (SCORES). This system,
established to
ensure the timely and efficient resolution of complaints against listed companies, registered
intermediaries, and market infrastructure institutions, has undergone several revisions to enhance
its effectiveness.
Complaints lodged on SCORES are automatically forwarded to the concerned entity for resolution.
Entities are required to resolve complaints and submit an Action Taken Report (ATR) on SCORES within 21 calendar days. This ATR is automatically routed to the complainant.
Simultaneously, complaints are forwarded to a relevant Designated Body to ensure compliance with the 21-day resolution timeline.
Designated Bodies, as specified in Schedule II of the circular, monitor the grievance redressal process. These bodies ensure entities submit ATRs within the stipulated time and take necessary actions if complaints are not resolved satisfactorily.
Designated Bodies are responsible for monitoring the quality of grievance redressal and advising entities on improving their processes.
Designated Bodies must have adequate infrastructure, systems, and manpower to manage the complaint redressal process.
They must maintain Management Information Systems (MIS) reports to track and ensure timely submission of ATRs.
Institutional trustees play a significant role in the governance of association, it is important also to consider the unique challenges faced by other member trustees. Addressing these diverse needs can help reduce the volume of unresolved complaints and better manage the complexities of evolving market instruments. Therefore, expanding the framework to include broader dialogue and more effective enforcement of trustee responsibilities would benefit all members.