1 Deputy General Manager Market Regulation Department MRD/ DoP / SE / Cir- 10 /2009 September 03, 2009 The President/Executive Director/ Managing Director of all the Stock Exchanges Dear Sir / Madam, Sub: Disclosure of investor complaints and arbitration details on Stock Exchange website 1. SEBI has received feedback from investors and their associations to bring in more transparency in the grievance redressal available in the Stock Exchanges. Based on the feedback and inputs received from the concerned entities, transparency in grievance redressal is identified as a key area to augment investor protection. It is envisaged that transparency will also improve the general functioning of the market by providing investors the wherewithal to make informed choice. 2. Accordingly, it has been decided that, to start with, Stock Exchanges shall henceforth disclose the details of complaints lodged by clients / investors against trading members and companies listed in the exchange, in their website. The aforesaid disclosure shall also include details pertaining to arbitration and penal action against the trading members. 3. The format for the report for the aforesaid disclosure, prepared with inputs from the Stock Exchanges, is given as annexure to this circular (14 pages), consisting of the following reports: a. Report 1A – Complaints received from clients against trading members during the current financial year. b. Report 1B – Redressal of complaints lodged by clients against trading members during the previous financial year. c. Report 1C – Redressal of complaints lodged by clients against trading members during the current financial year. d. Report 2A – Complaints received from investors against listed companies during the current financial year. e. Report 2B – Redressal of complaints lodged by investors against listed companies during the previous financial year. f. Report 2C – Redressal of complaints lodged by investors against listed companies during the current financial year. g. Report 3A – Disposal of arbitration proceedings (where client is a party) during the previous financial year. h. Report 3B – Disposal of arbitration proceedings (where client is a party) during the current financial year. 2 i. Report 4A – Penal actions against trading members during the previous financial year. j. Report 4B – Penal actions against trading members during the current financial year. 4. The Stock Exchanges are accordingly advised to: a. bring the provisions of this circular to the notice of the trading members and the companies listed in the Exchange and also to disseminate the same on the website. b. arrange to disclose details as per the aforesaid reports in their website within a period of one month from the date of this circular on a continuous basis. c. arrange to update the aforesaid reports on a quarterly basis, except the reports 1A and 2A, which shall be updated on a weekly basis. d. make amendments to the relevant bye-laws, rules and regulations for the implementation of the aforesaid disclosures, if necessary. e. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report. 5. For any clarification in this matter, the Chief General Manager, Office of Investor Assistance and Education, SEBI may be contacted at 26449400. 6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, Harini Balaji 3 Report 1A: Complaints received from clients against Trading Members (TMs)# during 2009-10: Updated on mm dd yyyy (to be updated weekly) (In excel sheet) Details of Complaint Sl. int Details of TM Status of Complaint No. Date of Receipt Name of Client Type of Complaint* Name of TM Market Segment If defaulter, Date of its declaration Status** Status Date## Date of Filing Arbitration Name of Arbitrator(s) Date of Arbitration Award 1 2 3 4 5 6 7 8 9 10 N # including against its sub-brokers, authorized persons, employees, etc. ## Status date is the date of resolution/reference to arbitration/finding it non-actionable. If under process, it is the date of updation of this sheet. */** As per Table 1A 4 Report 1B: Redressal of Complaints lodged by clients against Trading Members (TMs) during 2008-09: Updated on mm dd yyyy (to be updated every quarter) (In excel sheet) Of the Complaints received during 2008-09 No. of Complaints Sl. No. Name of the TM Defaulter (Yes/No) No. of UCCs at the beginning of the year No. of Complaints received against the TM * Resolved through the Exchange /IGRC Non actionable** Arbitration Advised Pending for redressal with Exchange No. of Arbitration filed by Clients Decided by the Arbitrators Decided by Arbitrators in favour of the clients Pending for Redressal with Arbitrators 1 2 3 4 5 6 7 8 9 10 N Total *including against its sub-brokers, authorized persons, employees, etc. **Non actionable means the complaint that are incomplete / outside the scope of stock exchange (Arrange the Trading members in descending number of complaints filed against them during the period) 5 Report 1C: Report of Redressal of Complaints lodged by clients against Trading Members (TMs) during 2009-10: Updated on mm dd yyyy (to be updated every quarter) (In excel format) Of the Complaints received during 2009-10 No. of Complaints Sl. No. Name of the TM Member Defaulter (Yes/No) No. of UCCs at the beginning of the year No. of Complaints received against the TM * Resolved through the Exchange /IGRC Non actionable** Arbitration Advised Pending for redressal with Exchange No. of Arbitration filed by Clients Decided by the Arbitrators Decided by Arbitrators in favour of the clients Pending for Redressal with Arbitrators 1 2 3 4 5 6 7 8 9 N Total *including against its sub-brokers, authorized persons, employees, etc. **Non actionable means the complaint that are incomplete / outside the scope of stock exchange (Arrange the Trading Members in descending number of complaints filed against them during the period) 6 Report 2A: Complaints received from investors against Listed Companies during 2009-10: Updated on mm dd yyyy (to be updated weekly) (In excel sheet) Details Sl. of Complaint Status of Complaint No. Date of Receipt Name of Client Name of Company Type of Complaint* Status** Status Date# Date of Filing Arbitration Name of Arbitrator(s) Date of Arbitration Award 1 2 3 4 5 6 7 N #Status date is the date of resolution/reference to arbitration/finding it non-actionable. If under process, it is the date of updation of this sheet. */** As per Table 2A 7 Report 2B: Redressal of Complaints lodged by investors against Listed Companies during 2008 -09: Updated on mm dd yyyy (to be updated every quarter) (In excel format) Sl. No. of Complaints No. Name of the Company If suspended, Date of Suspension No. of Folios of Shareholders Received Redressed through Exchange Non- Actionable* Arbitration advised Pending for Redressal with Exchange 1 2 3 4 5 6 7 8 9 10 N Total *Non actionable means the complaint that are incomplete / outside the scope of stock exchange (Arrange the companies in descending number of complaints filed against them during the period) 8 Report 2C: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10: Updated on mm dd yyyy (to be updated every quarter) (In excel format) Sl. No. of Complaints No. Name of the Company If suspended, Date of suspension No. of Folios of Shareholders Received Redressed through Exchange Non- Actionable* Arbitration advised Pending for Redressal with Exchange 1 2 3 4 5 6 7 8 9 10 N Total *Non actionable means the complaints that are incomplete / outside the scope of stock exchange (Arrange the companies in descending number of complaints filed against them during the period) 9 Reports 3A: Disposal of Arbitration Proceedings (where client is a party) during 2008-09: Updated on mm dd yyyy (to be updated every quarter) (In excel sheet) No. of Awards in favor of Clients No. of cases pending for redressal at the end of period Sl. No. Name of Arbitrator No. of Awards Passed Filed by TM Filed by Clients No. of Awards implemented No. of Awards appealed Pending For more than 6 months For more than 3 months, but less than 6 months 1 2 3 4 5 6 7 8 9 N Total (In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period) 10 Report 3B: Disposal of Arbitration Proceedings (where client is a party) during 2009-10: Updated on mm dd yyyy (to be updated every quarter) (In excel sheet) No. of Awards in favor of Clients No. of cases pending for redressal at the end of period Sl. No. Name of Arbitrator No. of Awards Passed Filed by TM Filed by Clients No. of Awards implemented No. of Awards appealed Pending For more than 6 months For more than 3 months, but less than 6 months 1 2 3 4 5 6 7 8 9 N Total (In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period) 11 Report 4A: Penal Actions against Trading Members during 2008-09: Updated on mm dd yyyy (to be updated every quarter) (in excel sheet) Action against TM, its sub-brokers / authorized person and employees together No. of Penal Orders issued Monetary Penalties levied (Rs. lakh) Sl. No. Name of Trading Member Registration No. No. of Complaints received For complaints For others For complaints For others No. of Arbitration Awards issued against 1 2 3 4 5 6 7 8 9 N 12 Report 4B: Penal Actions against Trading Members during 2009-10: Updated on mm dd yyyy (to be updated every quarter) (in excel sheet) Action against TM, its sub-brokers / authorized person and employees together No. of Penal Orders issued Monetary Penalties levied (Rs. lakh) Sl. No. Name of Trading Member Registration No. No. of Complaints received For complaints For others For complaints For others No. of Arbitration Awards issued against 1 2 3 4 5 6 7 8 9 N 13 Table 1A For Report 1A * Type of Complaints Type Description I I a I b I c I d Non-receipt / delay in payment: Delay in payment Non-receipt of payment Delay in refund of margin payment Non settlement of accounts II II a II b II c II d Non-receipt / delay in securities: Delay in delivery Non-receipt of delivery Delay in refund of margin deposit Non settlement of accounts III III a III b III c III d Non-receipt of documents: Contract notes Bills Account statements Agreement copies IV IV a IV b Unauthorized trades / misappropriation: Unauthorized trades in client account mis-appropriation of client’s funds / securities V V a V b V c V d Service related: Excess brokerage Non-execution of order Wrong execution of order Connectivity / system related problem 14 V e V f Non-receipt of corporate benefits Other service defaults VI VI a VI b Closing out / squaring up: Closing off / squaring up position without consent Dispute in Auction value / close out value VII Non implementation of arbitration award VIII IPO related IX Others ** Status Type Description I I a I b Non actionable Complaint incomplete Outside the scope of stock exchange II Resolved III Under Process IV Referred to Arbitration 15 Table 2A For Report 2A * Type of Complaints Type Description I I a I b I c I d Non-receipt of money: Refund in Public / Rights issue Interest on debt securities Redemption of debt securities Fractional entitlement II II a II b II c II d II e Non-receipt of Equity shares (demat & Physical): In Public / Rights issue (including allotment letter) Remat Transfer Transmission Conversion / endorsement / consolidation / splitting / duplicate certificate III III a III b III c III d III e Non-receipt of Debt securities (demat & Physical): In Public / Rights issue Remat Transfer Transmission Conversion / endorsement / consolidation / splitting / duplicate certificate IV IV a IV b IV c IV d IV e IV f Non-receipt of corporate benefits / entitlements: Dividend Bonus Rights form Buyback letter of offer Delisting letter of offer Annual Report V Non-receipt of interest for delay in: 16 V a V b V c V d V e Refunds Dividend interest on debt security Redemption of debt security Securities VI Others: (including non adherence to corporate governance norms) ** Status Type Description I I a I b Non actionable Complaint incomplete Outside the scope of stock exchange II Resolved III Under Process IV Referred to Arbitration
