About The SCORES Platform

Context:

A total of 3,079 complaints against companies and market intermediaries have been disposed of through the Securities and Exchange Board of India’s (SEBI) SCORES platform recently.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. About SCORES Platform
2. Types of Complaints Not Covered by SCORES Portal
3. Securities and Exchange Board of India (SEBI)

About SCORES Platform:

• SCORES is a centralized grievance redress system launched by SEBI in June 2011.
• It is a web-based platform that allows investors to lodge and track complaints online.
• The system enables market intermediaries and listed companies to receive and redress investor complaints.
• All complaint-related activities, from lodging to closure by SEBI, are conducted online in an automated environment.
• Complainants can view the status of their complaints online.

Scope of Complaints:

• Complaints can be lodged on SCORES for issues covered under various acts and regulations, including:
  • SEBI Act
  • Securities Contract Regulation Act
  • Depositories Act
  • Companies Act, 2013

Entities Handled by SEBI:

• SEBI handles complaints against various entities, including:
  • Listed companies / registrar & transfer agents
  • Brokers / stock exchanges
  • Depository participants / depository
  • Mutual funds
  • Portfolio Managers
  • Other entities such as KYC collective investment schemes, merchant bankers, credit rating agencies, foreign institutional investors, etc.

Types of Complaints Not Covered by SCORES Portal:

• Bank deposits and banking, including issues related to non-banking financial companies (NBFCs) – RESERVE BANK OF INDIA (RBI)
• Fixed deposits with manufacturing companies, unlisted companies, and matters related to company mismanagement, financial performance, shareholders’ interest, etc. – MINISTRY OF CORPORATE AFFAIRS
• Insurance companies, brokers, agents, and insurance products and services – INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)
• Commodities – FORWARD MARKETS COMMISSION
• Pension funds – PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PFRDA)
• Monopoly and anti-competitive practices – COMPETITION COMMISSION OF INDIA (CCI)
• Housing finance companies – NATIONAL HOUSING BANK

Securities and Exchange Board of India (SEBI):

• Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market in India.
• It was established in 1988 and received statutory powers in 1992 through the SEBI Act.
• SEBI’s primary objective is to protect the interests of investors and promote the development and regulation of the securities market.
• It regulates various entities including stock exchanges, brokers, sub-brokers, portfolio managers, depositories, custodians, and investment advisers.
• SEBI formulates rules and regulations to govern the securities market and ensures compliance by market participants.
• It oversees the issuance and trading of securities, such as equities, bonds, and derivatives.
• SEBI promotes transparency and fair practices in the securities market through disclosure requirements and corporate governance norms.
• It enforces regulations against market manipulation, insider trading, and fraudulent activities to maintain market integrity.
• SEBI conducts investigations and takes enforcement actions against violations of securities laws.
• The Investor Education and Protection Fund (IEPF) is managed by SEBI to promote investor awareness and protection.
• SEBI works in collaboration with other regulatory bodies and international organizations to strengthen the securities market ecosystem.

-Source: Business Standards