The Securities and Exchange Board of India through circular dated September 02, 2021 provided for comprehensive review of Investor Grievance Redressal Mechanism. The reviewed framework provides that the Stock Exchanges shall ensure that once a member has been declared defaulter, the claim (s) shall be placed before the Member Core Settlement Guarantee Fund Committee (MCSGFC, the erstwhile Defaulters’ Committee) for sanction and ratification.
MCSGFC’s advice w.r.t. legitimate claims shall be sent to the IPF Trust for disbursement of the amount immediately.In case the claim amount is more than the coverage limit under IPF or the amount sanctioned and ratified by the MCSGFC is less than the claim amount then the investor will be at liberty to prefer for arbitration outside the exchange mechanism/ any other legal forum outside the exchange mechanism for claim of the balance amount.
