Complaint pile-up tests Sebi's system of redressal

The rising interest in India's equity markets has brought with it an attendant problem the regulator is grappling with—a pile-up of investor complaints related to issues such as unauthorised trading, delayed payments, discrepancies in account statements, and mis-selling.

- Neha Joshi & Shayan Ghosh

The Securities and Exchange Board of India (Sebi) has resolved about 145,000 complaints since October 2021 when the data is available, but the number of unresolved complaints has been creeping up, indicating potential structural flaws in the system.

Launched in 2011, the Sebi Complaints Redressal System (Scores) is a web-based, centralized platform to receive investor complaints on issues with listed companies, market intermediaries, and recognized market institutions. But experts say Scores faces challenges in terms of efficiency and timely resolution of complaints.

Sebi did not respond to Mint's queries.

"The stock market has become so active, with many companies listed on various exchanges and numerous filings, that tracking compliance and penalties has become increasingly difficult," said Ketan Mukhija, senior partner at Burgeon Law.