The Securities and Exchange Board of India vide its notification dated 13th August 2020 has issued framework for handling investor complaints by exchanges as well as standard operating procedure for actions to be taken against listed companies for failure to redress such grievances.
These guidelines shall be in force from 1st September 2020.
The stock exchanges shall levy a fine of ₹1,000 per day per complaint on the listed entity for failure to redress investor complaints within stipulated time and fines shall also be levied on companies which are suspended from trading.
The Designated stock exchanges shall issue a notice to the listed entity intimating them about the levy of fines while also directing them to submit ATRs on the pending complaints and payment of fines within 15 days from the date of such notice. In case, if the listed entity fails to redress the grievances and/or pay fine levied within 15 days from the date of such notice, the concerned DSE shall issue notices to the promoter(s) of such entities, to ensure submission of ATRs on the pending complaints and payment of fines by the listed entity within 10 days from the date of such notice.
Further, if the exchanges has exhausted all options and if the number of pending complaints exceeds 20 or the value involved is more than Rs.10 lakhs, stock exchanges shall forward the complaints against such listed companies to SEBI for further action.
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