SEBI Introduces SCORES 2.0: Strengthening Investor Redressal

The Securities and Exchange Board of India (SEBI) launched a revamped version of its SCORES (SEBI Complaint Redress System) on April 1, 2024. SCORES 2.0 signifies a major step towards bolstering investor confidence and fostering a healthy investment environment in India. This upgraded system leverages technology to significantly improve the grievance redressal process for investors in the securities market by ensuring faster resolutions, automated follow-ups, and several new features.

Expedited Resolutions, Investor Empowerment, and New Features

SCORES 2.0 introduces several key features designed to expedite complaint resolution, empower investors, and streamline the process:

• Reduced Timelines: A significant improvement over the previous system, SCORES 2.0 implements standardized timelines, ensuring a maximum redressal period of 21 calendar days from the date a complaint is received. This fixed timeframe provides investors with greater clarity and eliminates the uncertainty associated with variable resolution timescales in the older system.
• Auto-Routing: Complaints are automatically directed to the relevant regulated entity, such as a stockbroker or mutual fund house, for prompt action. This eliminates the need for investors to navigate bureaucratic hurdles and ensures their concerns reach the right party from the outset. This streamlines the process, saving investors time and frustration.
• Auto-Escalation: If a complaint isn’t addressed within the mandated 21 days, it’s automatically escalated to the designated authorities at SEBI for further investigation and potential disciplinary action. This auto-escalation feature serves as a powerful tool, ensuring accountability and discouraging dilatory tactics by regulated entities.
• Two-Tier Review System: SCORES 2.0 introduces a two-tier review system. If an investor is dissatisfied with the initial resolution provided by the regulated entity, they can request a review by a designated SEBI body. This additional layer of oversight ensures a fair and thorough examination of the complaint.
• Document Upload Functionality: The new system allows investors to upload relevant documents to support their complaints. This document upload functionality strengthens the investor’s case and expedites the resolution process.

Enhanced User Experience and Seamless Integration

SCORES 2.0 boasts a more user-friendly interface, making it easier for investors to file and track their complaints. The intuitive design streamlines the process, reducing frustration and empowering investors to take an active role in resolving their grievances. Additionally, the system integrates with the KYC Registration Agency database for seamless investor registration. This integration eliminates the need for manual data entry, saving investors time and effort.

Important Update for Investors: Investors are advised to use the new SCORES 2.0 platform for filing all future complaints. The older SCORES version will no longer accept new complaints, but investors can still access the status of previously filed grievances.

SEBI’s SCORES 2.0 initiative marks a significant step towards strengthening investor protection in the Indian securities market. By ensuring faster complaint resolutions, a more streamlined process, clear lines of accountability, and offering new features like document upload and two-tier review, SCORES 2.0 empowers investors and fosters greater confidence in the investment environment. This will ultimately benefit the entire Indian capital market by attracting new investors and encouraging broader participation.

This upgraded system not only empowers investors but also sends a strong message to market participants regarding SEBI’s commitment to fair and transparent market practices. The emphasis on swift resolutions, adherence to timelines, and additional functionalities underscores SEBI’s focus on creating a more investor-centric environment. As a result, SCORES 2.0 has the potential to significantly improve the overall health and vibrancy of the Indian capital market.

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