Over 100 companies that do not respond to complaints made by investors on the online SEBI Complaint Redress System (SCORES) could be debarred from the capital markets, according to regulatory sources.

SEBI had launched Web-based centralised grievance redress system SCORES in June 2011. The Web site was set up to make corporates more accountable to their investors.

Since inception a total of around 3,000 companies have connected to SCORES system. However, about 100 companies are yet to connect to the same.

Around 30,000 investor complaints have been registered with SEBI, including physical form (around 70 per cent) and SCORES (30 per cent).

SCORES enables investors to lodge their complaints online and track their status. Those investors who do not have access to this facility can lodge complaints in physical form, which would then be scanned and uploaded for processing. An e-mail acknowledging the receipt allots a unique complaint registration number to the complainant for follow-up.

As and when complaints are received by SEBI, market intermediaries and companies are notified about these complaints and are required to report redressal within a time frame of around 30 days.

As per the procedure, the concerned companies are supposed to upload an Action Taken Report (ATR) on the complaints. Thereafter, SEBI peruses the ATR and closes the complaint if it is satisfied that the complaint has been redressed adequately.

The concerned company and the investor can also get in touch with each other through this online mechanism.

The idea behind SCORES is that if a company is planning to tap the markets for raising funds then investors have an idea about the investor grievances. Companies should give out information to them regularly so that investors continue to remain invested in the market, say market experts.

manisha@thehindu.co.in

sneha.p@thehindu.co.in

kram@thehindu.co.in

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