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Investor Grievances
Investor Grievances
BSE has established a Department of Investors Services (DIS) to redress investors' grievances. Since its establishment in 1986, the DIS has played a pivotal role in enhancing and maintaining investors' faith and confidence by resolving their grievances either against listed companies or against BSE's Trading Members. The services offered by DIS are as under:
(a) Investors' Grievances against Listed Companies
Investors' complaints against listed companies are forwarded by BSE to the concerned companies, with a copy sent to the complainant. The investors are advised to inform BSE if the complaints are not resolved within 30 days. If a company fails to redress the complaint within 30 days, BSE sends a reminder to the company.BSE follows-up with the companies and / or their Registrar & Transfer Agents, to resolve such complaints. If the total number of pending complaints against a company exceeds 25 and remain unresolved by the company for more than 45 days, then steps are initiated by BSE to suspend trading in the securities of such company till the complaints are resolved. BSE may also transfer such scrips to, "Z" Group.
A "Z" category company indicates that it has not complied with various provisions of the listing agreement including non-resolution of investors' complaints. Through creation of "Z' category, BSE cautions investors to be more careful in their investments in such companies.
Investors are expected to submit their complaints in the prescribed Complaint format to the concerned Regional Arbitration Centre of BSE, by confirming geographical jurisdiction on the basis of an investor's address. Filing of complaint at the concerned Regional Arbitration Centre will enable to process the complaint expeditiously.
Visit of Registrar & Transfer Agents to BSE
BSE regularly organizes visits of Registrars & Transfer Agents (RTAs) at its Registered Office to allow Trading Members and investors to have direct interface with them for redressal of complaints against companies listed on BSE. For forthcoming schedule, click here.
(b) Investors' Grievances against BSE's Trading Members
Investors are expected to submit their complaints in the prescribed Complaint Form
Effective from 31st January, 2009, the Complaint against trading members of the Exchange or Applications for Arbitration should be filed at the concerned Regional Arbitration Centre referred to in column 1 below covering that State or Union Territory of India, referred to in Column 2 below, within which the most recent address / registered office address of the constituent, as duly communicated in writing to the trading member in accordance with law, is located. Provided in respect of a non-resident Indian Constituent, the Seat of Arbitration shall be Regional Arbitration Centre which covers the States and Union Territories given in Column 2, in which lies the address or the Registered Office address, as the case may be, of the trading member, depending upon corporate or non-corporate membership of the trading member. The hearings shall be held in the concerned Regional Arbitration Centre in which the Applicant had duly filed the Application for Arbitration.
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Column 1
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Column 2
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Regional Arbitration Centres
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States and Union Territories covered by the
Regional Arbitration Centres
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Bombay Stock Exchange Limited
Regional Office – North,
7th Floor, Mercantile House
K G Marg New Delhi - 110 001. Telephone Number:011-41510481
Telefax No.:011-41510480
E-mail Id: iscdelhi@bseindia.com ; ritesh.kumar@bseindia.com
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Delhi, Haryana, Uttar Pradesh, Uttaranchal, Himachal Pradesh, Punjab, Jammu & Kashmir, Chandigarh, Rajasthan
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Bombay Stock Exchange Limited
Regional Office – East,
1st Floor, Kishor Bhaban
17, R. N. Mukherji Road
Kolkata –700 001
Telephone Number:033-22133184,
Telefax No.:033-22130530
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West Bengal, Bihar, Jharkhand, Orissa, Assam, Arunachal Pradesh, Mizoram, Manipur, Sikkim, Meghalaya, Nagaland, Tripura, Chhattisgarh
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Bombay Stock Exchange Limited
Regional Office – South,
4th floor, Exchange Building
No. 11, Second Line Beach
Chennai – 600 001
Telephone Number:044-42163999
Telefax No.:044-42164999
E-mail Id: iscchennai@bseindia.com;
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Andhra Pradesh, Karnataka, Kerala, Tamilnadu, Andaman & Nicobar, Lakshadweep, Pondicherry.
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Bombay Stock Exchange Limited
Regional Office – West,
Department of Investor Services,
P J Towers, 1st floor, Dalal Street,
Fort, Mumbai – 400001.
Telephone Number: 022-22721233/34
Fax No.: 022-22723677
E-mail Id: crasto@bseindia.com;
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Maharashtra, Gujarat, Goa, Daman & Diu, Dadra & Nagar Haveli, Madhya Pradesh
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JURISDICTION OF COURTS
The complaints of investors against BSE's Trading Member's are forwarded to the concerned Trading Members for resolution within 7 days. In case no reply is received from the Trading Members or the reply received from the Trading Member does not redress the complaint, the same is placed before Investors' Grievances Redressal Committee (IGRC).
BSE provides services of IGRC which, in its meetings, mediates and counsels te disputing parties for finding amicable solution, for which the Exchange sends Notice to both parties to remain present before the said IGRC. In cases, where an amicable solution cannot be reached. IGRC suggests the parties to opt for an arbitration if they so desire. It records the final outcome in the matter in the form of minutes, a copy of which is handed over to the parties or mailed to an absent party.
In case a Trading member fails to implement its part of decision recorded in the said minutes of tghe IGRC, necessary disciplinary action against it is initiated by BSE.
IGRC is a two member's Committee, presently constituted by a retired Justice of High Court and a Trading Member. The Exchange has formed IGRCs, separate for each Regional Arbitration Centre to deal with the cases coming within their respective geographical jurisdiction. It will be in the interest of investors to ascertain the concerned Regional Arbitration Centre for filing his / her complaint, since the period consumed in redressal of complaint through IGRC will not be considered while measuring period of 'limitation' in filing arbitration application, if opted, provided the complaint is filed at the concerned Regional Arbitration Centre.
Investor Protection Fund
BSE set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of finance, Government of India.
IPF is managed by the Trustees appointed by BSE.
The Fund corpus is created as follows:
The Members contribute Re.0.01 per Rs.1 lakh of gross turnover, which is debited to their General Charges Account.
BSE contributes, on a quarterly basis, 1% of the listing fees collected by it. The entire interest earned by BSE on 1% security deposit kept with it by companies making public/rights issues is credited to the Fund.
As per the SEBI directive, auction proceeds that have been impounded in certain cases where price manipulation / rigging was suspected are transferred to the Fund.
The surplus lying in the account of the defaulters after meeting their liabilities on BSE is released to them after transferring 5% of the surplus amount to this Fund.
As at the end of June 2008 (30/06/2008), the corpus of IPF was Rs.370 crore.
Compensation Policy
The maximum amount of Rs. 10,00,000 payable to an investor from Investor Protection Fund in the event of a default by a Trading Member has been revised to Rs. 15,00,000; which shall be applicable to the clients of the Trading Member of the Exchange, who will be declared Defaulter after 5th December, 2009. (This has been progressively raised by BSE from Rs.10,000 in 1988 to the present level).
The arbitration Award obtained by investors against defaulters are scrutinized by the Defaulters Committee, a Standing Committee constituted by BSE, which may recommend to the Trustees of the Fund for release of the awarded amount or the amount fixed by the said Committee or Rs.10,00,000 (Rs.15,00,000 applicable in case of clients of Trading Members which have been declared defulater from 5th December, 2009), whichever is lower. After the approval of the Trustees of the Fund, the amount is disbursed to the investors from the Fund.
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