Clients have multiple avenues for filing complaints against portfolio managers. This article provides a complete guide on how to file a complaint and the available redressal mechanisms.
Internal Grievance Redressal
First Step: Contact the Portfolio Manager
The portfolio manager shall take adequate steps for redressal of grievances of the investors within twenty-one calendar days of the date of the receipt of the complaint.
Contact Details
The portfolio manager must provide:
- Name, address and telephone number of the investor relations officer
- Grievance redressal and dispute settlement mechanism in the Disclosure Document
What to Include
When filing a complaint with the portfolio manager, include:
- Your name and contact details
- Unique client code
- Details of the complaint
- Supporting documents
- Timeline of events
SCORES 2.0
What is SCORES?
SCORES (SEBI Complaints Redress System) is a centralised online complaint resolution system through which the complainant can take up his grievance against the portfolio manager and subsequently view its status.
Two-Level Review Process
SCORES 2.0 operates through a two-level review process:
- First Level: Review by the relevant Self-Regulatory Organization or Recognized Industry Association
- Second Level: Review by SEBI
How to File on SCORES
- Visit https://scores.gov.in/scores/Welcome.html
- Register as a complainant
- File your complaint
- Track the status online
What to Include
- Your name and contact details
- Portfolio manager details
- Nature of grievance
- Supporting documents
Online Dispute Resolution (ODR)
What is ODR?
ODR (Online Dispute Resolution) is an online platform for resolving disputes between investors and portfolio managers through conciliation and arbitration.
SMARTODR
SMARTODR is the online dispute resolution platform that provides:
- Online conciliation
- Online arbitration
- Tracking of dispute status
Process
- Conciliation: Attempt to resolve the dispute amicably
- Arbitration: If conciliation fails, proceed to arbitration
- Award: Arbitration award is binding
What to Include
- Your name and contact details
- Portfolio manager details
- Nature of dispute
- Supporting documents
Timelines
Internal Redressal
21 calendar days from the date of receipt of complaint.
SCORES
- Complaint is forwarded to the concerned portfolio manager
- Portfolio manager must respond within the specified timeline
- Track status online
ODR
- Conciliation: 30 days (extendable)
- Arbitration: 3 months
Complaint Data Disclosure
Monthly Website Disclosure
All Portfolio Managers on a monthly basis shall disclose on their websites, the data pertaining to all complaints including SCORES complaints received by them in the specified format. The information shall be made available by 07th of the succeeding month.
What is Disclosed
The complaint data includes:
- Pending at the end of last month
- Received during month
- Resolved during month
- Total pending
- Pending complaints > 3 months
- Average resolution time
Expert Legal Guidance
Anuj Desai & Associates provides expert legal advisory services on grievance redressal for portfolio managers and clients. Our securities law experts help clients understand the complaint process, file complaints effectively, and ensure timely resolution. Contact us for guidance on grievance redressal and other regulatory matters.