QSB Investor Services Obligations — Complaint Redressal Standards That Apply Only to QSBs
QSBs must provide enhanced investor services, including online complaint redressal mechanisms and investor service centers in all cities where they have branches. The complaints redressal mechanism must be investor-friendly, convenient, and easily retrievable by the complainant online. This article explains the standards that apply only to QSBs and the grievance redressal score that affects QSB designation.
The Regulatory Basis
The investor services obligations for QSBs are specified in SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/24 dated February 06, 2023.
Investor Service Centers
QSBs must have investor service centers in all cities where they have branches. This ensures that investors have physical access to the QSB's services and can seek assistance in person when needed.
Online Complaint Redressal Mechanism
QSBs shall have online capabilities for:
- Engaging with clients.
- Responding to investor queries.
- Seamless facility for filing complaints by investors.
- Clearly defined escalation procedures.
The complaints redressal mechanism should be:
- Investor friendly and convenient.
- Capable of being retrieved easily by the complainant online through:
- Complaint reference number.
- E-mail id.
- Mobile no., etc.
Grievance Redressal Score as a QSB Parameter
The grievance redressal score of the stock broker is one of the seven parameters that decides QSB designation. All stockbrokers (subject to a maximum of five) are considered as QSBs if their individual grievance redressal score is equal to or more than 5%.
How the Grievance Redressal Score Is Calculated
The grievance redressal score is calculated based on:
- Number of complaints received.
- Number of complaints resolved.
- Timeliness of resolution.
- Pending complaints.
- Effectiveness of redressal.
Investor Grievance Redressal Mechanism
The process of investor grievance redressal for QSBs is as follows:
Level 1: Approach the Stock Broker
The investor can approach the Stock Broker at the designated Investor Grievance e-mail ID. The Stock Broker will strive to redress the grievance immediately, but not later than 21 days of the receipt of the grievance.
Level 2: Approach the Stock Exchange
If not satisfied, the investor can approach the Stock Exchange using the grievance mechanism mentioned at the website of the respective exchange.
Level 3: SEBI SCORES
The complaint not redressed at Stock Broker / Stock Exchange level may be lodged with SEBI on SCORES (a web based centralized grievance redressal system of SEBI).
Complaint Resolution Timelines at Stock Exchanges
Activity | Timeline
Receipt of Complaint | Day of complaint (C Day) Additional information sought, if any | C + 7 Working days Registration and forwarding to stock broker | C + 8 Working Days (T day) Amicable Resolution | T + 15 Working Days Refer to Grievance Redressal Committee (GRC)| T + 16 Working Days Complete resolution post GRC | T + 30 Working Days Implementation of GRC Order | On receipt of GRC Order
How We Help
At Anuj Desai & Associates, we help QSBs establish investor service centers, implement online complaint redressal mechanisms, and ensure compliance with SEBI's enhanced investor services standards. If you need assistance with investor services compliance, reach out to our regulatory compliance desk.