SEBI Amendment pursuant to comprehensive review of Investor Grievance Redressal Mechanism

Last updated: 04 September 2021

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The Securities and Exchange Board of India (SEBI) has issued amendments to its investor grievance redressal mechanism. These changes, which come into effect immediately, modify aspects of arbitration, including the location for higher-value disputes. They also streamline the process for determining legitimate claims from the Investor Protection Fund (IPF) for clients of defaulting members and clarify the threshold limits for interim relief payouts from the IPF to clients.

Securities and Exchange Board of India CIRCULAR SEBI/HO/MRD1/ICC1/CIR/P/2021/625 September 02, 2021 All recognized Stock Exchanges (excluding Commodity Derivatives Exchanges)/ Depositories Sir/ Madam, Sub: Amendment to SEBI Circular SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017 on Amendment pursuant to comprehensive review of Investor Grievance Redressal Mechanism 1. SEBI issued aCircular SEBI/HO/DMS/CIR/P/2017/15 dated February 23, 2017on Amendment pursuant to comprehen

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FAQ :

The circular introduces amendments to the investor grievance redressal mechanism following a comprehensive review, aiming to improve the process for investors.

For award amounts exceeding Rs. 50 lakh, parties can opt for arbitration or appellate arbitration to take place in the nearest metro city, with any additional costs borne by the party requesting the shift.

Stock exchanges will ensure claims are reviewed by the Member Core Settlement Guarantee Fund Committee (MCSGFC) for sanction. If the claim exceeds the IPF coverage or the sanctioned amount, investors can pursue the balance through arbitration outside the exchange mechanism or other legal forums.

The total amount released to a client through interim relief from the IPF shall not exceed Rs. 10.00 lakhs in a financial year.

Yes, in cases where claims are filed beyond the prescribed timeline (for members), the stock exchange shall refund the deposit to the party in whose favour the arbitral award has been passed.

Notification No : SEBI/HO/MRD1/ICC1/CIR/P/2021/625
Source : https://www.sebi.gov.in/legal/circulars/sep-2021/amendment-to-sebi-circular-sebi-ho-dms-cir-p-2017-15-dated-february-23-2017-on-amendment-pursuant-to-comprehensive-review-of-investor-grievance-redressal-mechanism_52345.html

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